Paterson City Council Rejects Mayor's Budget with 5.6% Property Tax Increase

Strategic Insights -

The Paterson City Council voted 5-3 against Mayor Andre Sayegh's proposed municipal budget containing a 5.6% property tax increase, citing concerns over reliance on state transitional aid. Council members argued that the Sayegh administration should make additional cuts in the $302 million budget instead of relying on a $6 million increase in state aid. The rejection of the budget by the council has significant implications for the city's residents and businesses, with the potential for layoffs and a reduced tax increase if the state fails to provide the requested aid.

Key Takeaways:

  • The Paterson City Council rejected Mayor Andre Sayegh's proposed municipal budget containing a 5.6% property tax increase in a 5-3 vote on May 14.
  • Council members argued that the Sayegh administration should make additional cuts in the $302 million budget instead of relying on a $6 million increase in state transitional aid.
  • There is no certainty that Paterson will receive the extra money the mayor is requesting, with Councilman Md Forid Uddin stating that "I cannot support something that is totally based on a hope."
  • Councilman Shahin Khalique proposed reducing the proposed tax increase by imposing a hiring freeze, cutting overtime, and curtailing spending on operating expenses.
  • The final vote on the budget will not occur until late summer, after the state decides whether to boost Paterson's transitional aid to $33 million.
  • If the city receives the full amount it requested, Paterson's tax increase will be 2%, according to Mayor Sayegh.
  • If the state gives Paterson less than the $27 million the city received last year, the city will have to impose layoffs, according to Business Administrator Marc Seemon.

Statistics:

  • $302 million: the total budget proposed by MayorAndre Sayegh
  • 5.6%: the proposed increase in property taxes
  • $6 million: the increase in state transitional aid requested by the Sayegh administration
  • $33 million: the amount of transitional aid Paterson is seeking from the state
  • $27 million: the amount of transitional aid Paterson received last year
  • $25 per day: the fine imposed on council members who fail to vote on a budget
  • 2%: the reduced tax increase if the state approves the full amount of transitional aid requested
  • 5-3: the margin by which the council voted against the budget

Sources:

  • Paterson Press: "Paterson Council rejects mayor's budget; officials call for more cuts" (no date mentioned)
  • City of Paterson: "Mayor Sayegh Proposes $302 Million Budget for 2023" (no date mentioned)
  • New Jersey Department of Community Affairs: "Division of Local Government Services" (no date mentioned)
  • New Jersey State Legislature: "State Transitional Aid for Municipalities" (no date mentioned)
  • Paterson Press: "Paterson Mayor Sayegh on his budget, council's vote: 'They're trying to be obstructionists'" (no date mentioned)