Towns devastated by Sandy face new financial threat

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Towns devastated by Sandy face new financial threat

Millions of dollars in grants are scheduled to end after this year.

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Jean Mikle and Russ Zimmer, Asbury Park (N.J.) Press 6:11 p.m. EDT September 12, 2015

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A total of $44.6 million this year will be sent to ailing local governments that are still trying to steady themselves from Sandy. The grants, however, expires after this year.

Toms River is one of 13 towns in Monmouth and Ocean counties that will have to make financial adjustments next year to account for the loss of a major superstorm Sandy grant.(Photo: File photo)

ASBURY PARK, N.J. — Almost three years after Superstorm Sandy devastated parts of the Jersey Shore, a new threat looms over towns that suffered severe damage: the loss of millions of dollars in grants used to help stricken communities pay for basic services.

The money flowed into towns and school districts over the past three years through the state's Essential Services Grant program, funded by the federal government. The program has served as a fiscal bridge for communities whose property tax bases were diminished by Sandy, in some cases by hundreds of millions of dollars.

Now the money is disappearing, leaving some municipal and school officials with tough choices: Should they raise taxes, cut salaries or eliminate positions?

A total of $44.6 million this year will be sent to local governments still trying to steady themselves from Sandy. These 15 towns and school districts, according to applications provided to the Asbury Park Press under a public records request, were desperate for help paying salaries for nearly 1,700 public employees, mostly cops and teachers.

But the grant program, funded through federal Community Development Block Grant funds, was never intended to last more than three years. Recovery from Sandy is taking much longer, leaving town officials in a bind. Some have already started to lobby the state for additional assistance when the grants disappear next year.

Municipal and school officials say some of the lost grant funds can be made up by an increase in the number of new and rebuilt homes coming back on the tax rolls as the third anniversary of the storm approaches.

For example, Lavallette Mayor Walter LaCicero said the ratable base in his small borough will soon equal the $1.87 billion it was before Sandy struck, as residents build larger and more expensive homes. That recovery will help Lavallette deal with the loss of more than $600,000 in grant funds, which paid for 43 seasonal public works and police employees, and 13 year-round employees, he said.

But Seaside Heights, still missing about $200 million in taxable property, faces more uncertainty. It has already sent a delegation to Trenton to plead with state officials for more help.

"I believe we are one of the towns that is worst off in terms of loss of the grant," Borough Administrator Christopher J. Vaz said. The borough received a grant of $2.1 million this year, which paid for 19 police officers and eight water and sewer department employees. "It's a large sum of money for us to make up."

There are no assurances that the state, which faces its own fiscal challenges, will be able to make up for the lost federal dollars.

Regardless of the program's expiration, the state "will continue to actively engage hard hit communities to address any budget concerns that arise, whether or not related to Sandy," said Lisa Ryan, spokeswoman for the New Jersey Department of Community Affairs, which runs the grant program.

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Towns devastated by Sandy face new financial threat

1

Share This Story!Let friends in your social network know what you are reading about

Towns devastated by Sandy face new financial threat

Millions of dollars in grants are scheduled to end after this year.

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Audio CAPTCHA

Image CAPTCHA

Help

CancelSend

Sent!

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Posted!

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Jean Mikle and Russ Zimmer, Asbury Park (N.J.) Press 6:11 p.m. EDT September 12, 2015

UP NEXT

03

A total of $44.6 million this year will be sent to ailing local governments that are still trying to steady themselves from Sandy. The grants, however, expires after this year.

ASBURY PARK, N.J. — Almost three years after Superstorm Sandy devastated parts of the Jersey Shore, a new threat looms over towns that suffered severe damage: the loss of millions of dollars in grants used to help stricken communities pay for basic services.

The money flowed into towns and school districts over the past three years through the state's Essential Services Grant program, funded by the federal government. The program has served as a fiscal bridge for communities whose property tax bases were diminished by Sandy, in some cases by hundreds of millions of dollars.

Now the money is disappearing, leaving some municipal and school officials with tough choices: Should they raise taxes, cut salaries or eliminate positions?

A total of $44.6 million this year will be sent to local governments still trying to steady themselves from Sandy. These 15 towns and school districts, according to applications provided to the Asbury Park Press under a public records request, were desperate for help paying salaries for nearly 1,700 public employees, mostly cops and teachers.

But the grant program, funded through federal Community Development Block Grant funds, was never intended to last more than three years. Recovery from Sandy is taking much longer, leaving town officials in a bind. Some have already started to lobby the state for additional assistance when the grants disappear next year.

Municipal and school officials say some of the lost grant funds can be made up by an increase in the number of new and rebuilt homes coming back on the tax rolls as the third anniversary of the storm approaches.

For example, Lavallette Mayor Walter LaCicero said the ratable base in his small borough will soon equal the $1.87 billion it was before Sandy struck, as residents build larger and more expensive homes. That recovery will help Lavallette deal with the loss of more than $600,000 in grant funds, which paid for 43 seasonal public works and police employees, and 13 year-round employees, he said.

Atlantic City was awarded more than $14 million through a federal grant program that pays for towns that couldn't afford to provide basic services because of the last effects of superstorm Sandy. That program expires this year, leaving several New Jersey towns and school districts facing an uncertain future next year. (Photo: ~AP)

But Seaside Heights, still missing about $200 million in taxable property, faces more uncertainty. It has already sent a delegation to Trenton to plead with state officials for more help.

"I believe we are one of the towns that is worst off in terms of loss of the grant," Borough Administrator Christopher J. Vaz said. The borough received a grant of $2.1 million this year, which paid for 19 police officers and eight water and sewer department employees. "It's a large sum of money for us to make up."

There are no assurances that the state, which faces its own fiscal challenges, will be able to make up for the lost federal dollars.

Regardless of the program's expiration, the state "will continue to actively engage hard hit communities to address any budget concerns that arise, whether or not related to Sandy," said Lisa Ryan, spokeswoman for the New Jersey Department of Community Affairs, which runs the grant program.

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