SEA ISLE CITY –– This city was one of only three of the state’s 566 municipalities scheduled to receive an increase in municipal aid in Gov. Jon Corzine’s 2008 proposed budget, but only for one day.

Certification of state aid documents provided by the state Department of Community Affairs (DCA) March 4 were incorrect due to a formula miscalculation, according to Tom Vincz of the state Treasurer’s office.

Sea Isle City Administrator George Savastano and Chief Financial Officer James Terruso confirmed for the Herald the math error.

The original forms showed that Sea Isle would see reductions of approximately $43,000 in state aid programs such as the efficiency performance program, homeland security funding and property tax assistance, but they also showed an increase of $48,000 in energy tax receipts distribution from $302,852 in 2007 to $351,495 this year.

Energy tax is a levy on utility companies, based on the value of the infrastructure they had in each municipality.

Sea Isle’s total state aid package would have increased 1.6 percent from $346,941 in 2007 to $352,536 this year, a difference of $5,595.

Forms available March 6, however, showed Sea Isle’s energy distribution remaining flat this year at $302,852 leaving the resort town with a reduction of $43,048 or 12.4 percent.

The DCA figures were also incorrect for the Seven Mile Island communities of Avalon and Stone Harbor as well as three Ocean County municipalities.

Originally, Avalon would have had a reduction in total state aid of only $12,426, but the new figures show a decrease of $42,610.
Similarly, Stone Harbor expected a minimal decrease of only $742, but now faces a much more substantial reduction of $33,990.

Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com