Point Boro Council Candidates Differ on Using School Taxes in Town Budget

Republican and Democratic Point Borough Council candidates have different views on using school tax revenue in municipal budgets.

A municipality is able to borrow school tax revenue because it collects taxes for the municipality, school district and county.

It collects the taxes for the school district six months in advance of when the district begins to need those funds and, if it borrows any of that revenue to use in the town budget, it must pay it back six months later.

Democratic Councilman Chris Leitner, Donna Drive, and newcomer Democrat Brian Welch, Passaic Avenue, are challenged by GOP newcomers Lynn Faugno, Crestview Terrace, and John Wisniewski, Rosewood Avenue, for two, three-year seats in the election on Tuesday.

Although the council voted at its June 9 meeting to use about $354,000 in school tax revenue, the Democratic candidates said that was only to plug a budget deficit left by last year's council, that they will not need to use the school revenue next year and they do not plan to use it in the future.

Republican candidates say they believe school-deferred taxes should sometimes be used to help prevent municipal tax increases from being higher than they otherwise would be.

When asked if she advocates the town borrowing from school tax revenue, Faugno said, "I'm not going to say absolutely yes or no. It's like having a credit card. You have to use your credit line judiciously.

"If you have a plan to pay it off and it helps keep taxes lower, yes, absolutely, use it," Faugno said. "But it depends on the specifics of each budget and what the money is going to be used for."

Wisniewski said he would use school taxes to help decrease the municipal tax rate.

"I've always said that the town should use school taxes in the most responsible way," Wisniewski said. "The town only has one source of income and that's taxes. And taxes are all coming out of our pockets, whether it's town or school taxes. So we should leave the money in the pockets of residents as long as we can."

Leitner and Welch, in a joint emailed statement, said that this year's council, with a Democratic majority "only planned to use it (school taxes) one time, for a one-time expense."

"Using it for continuing expenses is bad for our finances, so explain our budget experts - it causes a perpetual hole in the budget, like using one credit card to pay off another," Leitner said.

"Using it for one-time, non-recurring expenses, however, is appropriate and actually good for the budget," the statement says..

"We used it this year, but very differently (from last year)," he said. "Our use was designed to be a one-time use that plugged the budget deficit they left by their disastrous budget from last year, and we do not plan on using it again."

He said his opponents favoring use of school taxes to help suppress a municipal tax rate increase is the same as "last year's borrow and spend policy which left us with $14 Million in new debt last year alone and a $350,000 deficit."

"With Mayor Schroeder, Chris Goss and Jack McHugh, I fixed the deficit, cut $400,000 from spending this year and have negotiated contracts that will save the Borough at least $1.6 Million over the next five," Leitner said.

Republican council members Toni DePaola and Mitch Remig, along with the Democrats, had voted to borrow the school funds,

Republican council member Bob Sabosik had been the lone no vote against borrowing school taxes.

Regarding other budgetary matters, Faugno said every effort should be made for all borough departments to purchase supplies, gasoline, health insurance and equipment together to buy in bulk and save money. She also said the borough should try to do that with other municipalities as well to get lower bulk rates.

When asked if the borough is calling on departments to purchase jointly, Leitner said yes and that many are doing that, but it can always be looked into even more with meetings and conversations with department heads.

He said the borough uses state contracts "to get the lowest possible price on health insurance."

Wisniewski said he would use his accounting expertise to study the budget to look for ways to make cuts.

"I don't know that there is anything I would say now should be cut without studying it, but I would study it to see if anything can be cut," he said.

He also said he would like to be on the finance committee to put his accounting experience to work on the municipal budget.

"I'd like to see if the books and records are in better shape," he said. "We're being told they are, but I'd like to see it."

Wisniewski is senior vice president of finance for River Road Waste Solutions, Red Bank, where he has worked for the past year.

Welch said he wants to encourage better communication between borough department heads and employees.

"Maybe we could have bi-monthly meetings to discuss what their issues are so we can see what's happening with department heads," Welch said. "One hand needs to know what the other hand is doing."

Welch said he would also like to see if there is any state or federal funds available to help the borough somehow expand or add to the physical space available to the Recreation Department for its pre-school program.

He said his wife waited in line for two hours to register one of their young children for pre-school at the Recreation Center on River Road, which is when he realized the demand far outweighs the availability. Those kinds of lines, and potential students being turned away due to lack of space and resources, has been the norm for many years.

"Maybe we could build a satellite building in one of the parks" if there is a way to do it without impacting local taxes, he said.

"I don't want my taxes to go up either," he said.

Welch is an 11-year member of Local #9 plumbers and pipe fitters.

Leitner is a partner in the law firm of Leitner, Tort and DeFazio, Edison, specializing in Workers' Compensation defense.

Faugno has worked as a nurse at Kimball Medical Center, Lakewood, and St. Peter's School, Point Beach, and has also worked as a teacher.

The current borough policy is to pay an annual stipend of $3,200 to each council member and $4,200 to the mayor.

A municipal official said Sabosik, Leitner, Goss and Schroeder are not being paid, according to municipal payroll records. Leitner has said in the past that he declined the stipend due to the borough's difficult financial situation this year.

The Republicans will seek to take back their majority on council. On Jan. 2, Democrats gained a majority on council for the first time since 1981.

Leitner, McHugh, Goss and Schroeder form the narrow Democratic majority.

Republican candidates have been officially endorsed by Republican candidates running in District 30, which now includes Point Borough.

Democratic candidates have been officialy endorsed by Schroeder and McHugh.

Polls are open from 6 a.m. to 8 p.m.