ESSEX COUNTY EXECUTIVE DIVINCENZO PRESENTS

BALANCED AND RESPONSIBLE BUDGET PROPOSAL FOR 2024

Budget is presented before Statutory January 15^th Deadline

for the 22^nd Consecutive Year

Newark, NJ – On Thursday, January 14^th, Essex County Executive Joseph N. DiVincenzo, Jr. (fourth from left) presented a balanced and responsible 2025 budget of $874.1 million that includes a 1.99 percent property increase and addresses the challenges due to the ongoing national economic conditions and rising costs due to inflation. DiVincenzo has limited tax increases to an average of just 1.15 percent over the last five years and layoffs have been avoided since 2004. The County Executive has presented the County Budget before the State’s statutory deadline of January 15^th for 22 consecutive years. With the County Executive at the presentation are (from left) Chief of Staff Phil Alagia, Commissioner Brendan Gill, Commissioner President Carlos Pomares, Commissioner Vice President Tyshammie Cooper, Commissioner Len Luciano, Sheriff Amir Jones and County Administrator Robert Jackson. (Photo by Mustafa Houton)

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FOR IMMEDIATE RELEASE

ESSEX COUNTY EXECUTIVE DIVINCENZO PRESENTS

BALANCED AND RESPONSIBLE BUDGET PROPOSAL FOR 2024

Budget is presented before Statutory January 15^th Deadline

for the 22^nd Consecutive Year

Newark, NJ – On Thursday, January 14^th, Essex County Executive Joseph N. DiVincenzo, Jr. presented a balanced and responsible 2025 budget of $874.1 million that includes a 1.99 percent property increase and addresses the challenges due to the ongoing national economic conditions and rising costs due to inflation. DiVincenzo has limited tax increases to an average of just 1.15 percent over the last five years and layoffs have been avoided since 2004. The County Executive has presented the County Budget before the State’s statutory deadline of January 15^th for 22 consecutive years.

“Our 2025 budget that we are presenting today increases Essex County property taxes by just 1.99 percent, which is lower than the state cap of 2.0 percent. This recognizes the financial hardships our residents have faced because of the rising costs we all are experiencing because of inflation,” DiVincenzo said. “Developing our annual budget is a serious matter and creates the financial plan that the county will follow for the upcoming year. Presenting it by January 15^th enables us to identify the complex challenges facing government and address them early. It also gives our municipal partners and constituents a clear snapshot of what to expect from the county,” he added.

“We are off to a great start with the budget. It is quite amazing the number of projects we are able to compete each year while also addressing immediate and long term needs,” Commissioner President Carlos Pomares said. “Thank you, Joe, for another dynamic budget. With all the challenges we face, your leadership is keeping us heading in the right direction,” Commissioner Vice President Tyshammie Cooper said. “I look forward to continue working with the County Executive on future projects and appreciate that, once again, the budget is presented so early,” Commissioner Len Luciano said. “It is an honor to be part of a government with the County Executive and I appreciate the hard work he does every day to bring stability to Essex. It allows us to accomplish so much for the public,” Commissioner Brendan Gill said.

The County Executive pointed out that his administration monitors the budget throughout the year and started preparing the 2025 budget in July 2024. Getting an early start enabled Department and Division Directors, Constitutional Officers and County agencies to identify and address issues, investigate ways to reduce expenses and generate new revenue, and have a plan in place by the statutory January 15^th deadline. “This rigorous planning and constant vigilance have helped us to respond proactively when we are faced with challenges brought on by the national economy, unexpected events or new laws,” DiVincenzo said.

This constant attention to detail in preparing the budget has enabled Essex County to do the following:

• The 2025 budget includes a 1.99 percent property tax increase. The State cap allows governmental operating budgets to increase property taxes up to 2.0 percent annually.
• Essex County gives its taxpayers the best bang for their buck, funding its annual operating budget with the lowest percentage of property tax dollars in comparison to the state’s other 20 counties. DiVincenzo pointed out that the proposed budget for 2025 relies on property taxes for just 52.6 percent of the total revenue and that the other 47.4 percent is funded with grants or other sources. Other counties rely on property taxes for an average of 72 percent of their revenue. DiVincenzo noted that projects such as bridge replacements, intersection modernizations, the construction of community centers in the parks and other recreation upgrades all have been funded with grants and have no impact on the budget.
• Over the last five years, property tax increases have been limited to an average of 1.15 percent and, over the last 10 years, Essex County has held the average increase in property taxes to about 1.09 percent, which is significantly below the state cap of 2.0 percent.
• Over the last 22 years, Essex County has held the average increase in property taxes to about 2.03 percent, which is the third lowest percentage rate of increase of all New Jersey counties behind Hunterdon and Monmouth counties.
• Starting in 2007, DiVincenzo implemented a “debt diet” initiative to stabilize the County’s debt service by refinancing existing debt without extending its maturity date and limiting the amount of new debt to a maximum of $20 million annually. In 2025, the debt service payment is $101.2 million, which will be reduced to just $75.8 million in 2031.
• DiVincenzo has downsized the County workforce by not filling open positions unless they are essential to public safety and public health operations. This includes positions such as nurses at the Hospital Center or Corrections Officers at the Correctional Facility. Under DiVincenzo’s leadership, over the last 22 years, Essex County’s workforce has been reduced from a high of more than 4,000 employees in 2003 to 3,593 in the 2025 budget proposal.
• Over the years, Essex County has built a strong fund balance by realizing savings in previous years’ budgets. The fund balance projected for 2024 is about $82.2 million. This reserve helps the County respond to emergencies, displays fiscal stability to bond rating agencies and has helped improve the County’s cash flow and avoid taking out Tax Anticipation Notes. (When DiVincenzo took office in 2003, the previous administration left a budget deficit of $64 million.)
• $36 million in fund balance is being used as revenue in the 2025 budget.
• Under DiVincenzo’s direction, the county continually looks for new opportunities for recurring revenue, which includes shared service agreements with other governments and government agencies and new fees. The 2025 budget is projected to have about $135.7 million of new, recurring revenue, which lessens the County’s reliance on raising property taxes.

The DiVincenzo administration has worked hard since 2003 to eliminate the structural budget deficit and ensure that Essex does not spend more than the revenue it collects. Austere budgeting, downsizing the workforce, eliminating unnecessary contracts and conservative spending practices have strengthened Essex County’s financial position and restored the County’s fiscal health.

The 2025 budget proposal has been forwarded to the Essex County Board of County Commissioners for review.