State to Reimburse Princeton $464k for Consolidation Costs

The State of New Jersey will reimburse Princeton $464,000 to help offset consolidation transition costs, according to a May 16 letter from the state's Department of Community Affairs, Mayor Liz Lempert announced.

The amount equals 20 percent of the one-time transition costs and is what Gov. Chris Christie pledged in 2011, Lempert said. 

Princeton's 2013 consolidation-related budget savings have already exceeded the projections of the Consolidation Commission by 40 percent, she said, adding that Council will consider a further reduction in the municipal tax rate at its next meeting.

“With a single government, we are now delivering better services at a lower cost," Lempert said. "At the end of three years, when consolidation is fully phased in, we expect to save approximately $3 million annually from what our expenses would have been had we not consolidated– a conservative estimate.”

Princeton should expect to receive $350,000 in state reimbursement by October to be used for the 2013 municipal budget. The balance will be paid by the end of the year, assuming Princeton submits proof that the expenses were one-time, reasonable and essential.

“Consolidation has moved Princeton from being forced to choose between diminishing services or higher taxes to a promising future with opportunities to enhance services and save money,” Lempert said. “We know many people around the state are watching, and considering whether consolidation might work for them, too.”