Common Sense Budget Reductions for Gloucester Township

As Proposed by the GT United Team

EXPLANATION OF THE ISSUE Government spending and property taxes in Gloucester Township have increased to levels that are unsustainable to its

residents. Taxes increased 9% in 2014; and have increased 56% since 2008. Further, debt in Gloucester Township is more than

$100 million.

Gloucester Township government needs to exercise fiscal control and sensible restraint in its spending - just like every GT

household and small business.

Here are some common sense proposals by the GT United team to help control spending and lower taxes.

OUR SIX PROPOSALS

1. Closely Scrutinize and Analyze Discretionary Spending: Much of our government spending is mandatory or fixed.

But much of it is discretionary. For every Gloucester Township proposal for spending that is discretionary in nature, a

‘cost/benefit’ analysis must be prepared and disclosed. This analysis must also include an explanation as to why the

expenditure should not be deferred. Further, if the expenditure is approved, a designee will be named (typically the

applicable department manager) who will be accountable to manage, achieve, and disclose the cost and benefit targets.

2. Widen the RFQ/RFP Process: Often, Gloucester Township’s bidding process for government contracts is

intentionally made narrow and targeted in order award contracts to politically favored firms. This practice must end.

Reform measures will be taken to ensure a wider, more open process to advertise bids and award contracts.

3. Zero-Based Budget: Too often, the budgeting process becomes a mindless exercise where a few percentage points of

increase are added to the prior year’s budget, with little consideration. However, every few years, it is beneficial for an

organization to go through the ‘zero-based budget’ process. The ‘zero-based budget’ is a more robust budgeting

process that requires an organization to scrutinize and rationalize every dollar it spends, from the ground up.

4. No More ‘Cap Bank’ to Increase Taxes: New Jersey has a law that is intended to allow no more than a 2% property

tax increase per year. Unfortunately, there are many loopholes in this law that enable our township to increase taxes

more than 2%. Our current Gloucester Township government used loopholes in 2014 to increase property taxes 9%.

One of the loopholes that Gloucester Township routinely utilizes to impose tax increases greater that 2% is termed

‘Cap Bank’. GT United will propose a resolution to end abuse of this loophole.

5. Closely Scrutinize Carryover of Budget Surpluses and Reserves: During the annual budgeting process, unspent

budget amounts from the prior year’s budget are routinely carried over to the next year, without question or scrutiny.

Instead, the GT United team will implement measures to require that budget carryovers will be disapproved unless the

carryover amount can be rationalized and disclosed in detail.

6. Disclosure of Tax Abatement Recipients: So that the public better understands GT’s property tax abatement

program, the GT Tax Assessor’s office will be required to maintain and disclose a list of tax abatement recipients.

Included will be amounts, time frame, etc., of each abatement. In-process applications will also be included in this

disclosure.