Patricia A. Walsh

September 2, 2008
Press Conference

    This election is about changing the way Middletown does business. I say that, because for many years now the GOP majority has become complacent, entrenched and unwilling to change. They closed the door on public discussion by not allowing them to see the agenda items they are voting on. Decisions were made via phone calls to other committee members, discussion was non existent. For many meetings the committee was a rubber stamp, voting yes in harmony.

    All those “yes” votes cost us with higher taxes and a budget that continues to grow out of control.

    Those votes added up to excessive bonding for projects that were never thoroughly planned or evaluated prior to implementation. The Middletown Arts Center, for example, has cost taxpayers over $8 million and still counting with the extended litigation. Projects like this and other excessive bonding have ballooned to $85 million of debt.

    The annual cost to taxpayers to pay off that $85 million of debt is 8.4 million per year. That is $3,864 for each of the 22,000 Middletown households. Our debt service payments are more than one seventh of the annual budget. The truth is the GOP majority has been spending beyond “our” means, and we got stuck with the bill.

    I plan to change that. The time has come to put an end the excessive bonding of the past. It’s called being frugal and these tough economic times require it. I propose that any large capital projects be thoroughly planned and include detailed budget estimates. We should present the plans and estimates to the public for their input before taking action. Larger projects should be put out for referendum and ask voters what they want.

    No more bonding first and asking questions or finding hidden costs later. Above all, we must keep an eye on what our taxpayers can afford, not how much the law says we are allowed to bond. As a committee, we must limit borrowing to essentials and live within our means.

    The tax increase in this year’s budget was 7.1% including the use of deferred school taxes to lower the increase. There was a lot of finger pointing at Trenton, but the committee failed to take responsibility for there own financial decisions. We can cut spending here in Middletown and we can reduce taxes. We just have to sharpen our pencil.

    For example, this year the committee majority has budgeted roughly $600,000 for legal expenses, out of a $62 million budget. In comparison, the school district budgeted $235,000 in legal expenses for a 140 million budget. That means on a percentage basis, the township spends close to 5 times the amount on legal costs as the school district.

    For example, the professional contract given to our township attorney establishes a $50,000 base salary, with $310,000 budgeted for legal spending at $125 per hour. But in Atlantic Highlands the same attorney bills at $115 an hour. Does this make sense? This is an attorney regularly bills for 200 hours a month or more than 50 hours per week. Some days he has billed for more than 20 hours in a single day.

    Legal costs like these are outrageous and I propose several measures to bring them under control. One is that we implement a sub-committee structure, with assignments for all committee members. A finance committee would review of all legal spending. Estimates of proposed legal actions would be reviewed and approved by the committee before incurring added legal costs.

    A blue ribbon budget advisory committee would be established to review the budget in its entirety. They would be given unfettered access to all budget documents to review and develop budget recommendations for the Township Committee. Finally legal professional contracts would be capped at a not to exceed amount. I strongly believe spending can be cut while maintaining services.

    Middletown must change the way it does business, our residents deserve nothing less. We can no longer afford the way the GOP majority has handled municipal finances. The change that was begun with the election of Democratic leaders Pat Short and Sean Brynes has brought increased accountability, budget cuts and more discussion on all issues. I ask you to complete that change by electing my running mate, Jim Grenafege and myself, Pat Walsh on November 4th. Remember, the problems of the past cannot be solved by those that created them.
    It’s time for new leaders.