Byram Township will use funds from its capital expenditures line to cover a $120,000 budget shortfall, and not apply to the state for special emergency status.
The township council unanimously agreed on this remedy at their Nov. 16 meeting. Township Manager Joseph Sabatini said the original capital balance came from a transfer of $450,000 for 2020 expenditures that were anticipated but not entirely used.
He said the township will request grant funding through the CARES Act to get most of its Covid expenditures reimbursed. However, he said, the township has shortfalls on revenue side, in investment interest and state aid.
Sabatini said a special emergency would spread the $120,000 shortfall over the next six years. The township would not contribute any money the first year and pay back one-fifth of the amount over the next five years. It would essentially put their budget in the state’s hands for the next six years and subject the township to an annual budget review, he said.
Currently, the state reviews the township’s budget once every three years, and the township completes a local budget exam in each of the other two years.
Councilman Harvey Roseff asked how much of the $450,000 has been spent. Sabatini said it was minimal, and he would have to check the details.