[Congressional Record Volume 166, Number 82 (Friday, May 1, 2020)]
[Extensions of Remarks]
[Page E414]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 RECOGNIZING THE FISCAL IMPACT OF THE CORONAVIRUS PANDEMIC ON THE TOWN 
                     OF BERKELY HEIGHTS, NEW JERSEY

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                          HON. TOM MALINOWSKI

                             of new jersey

                    in the house of representatives

                          Friday, May 1, 2020

  Mr. MALINOWSKI. Madam Speaker, I rise today to recognize the 
devastating impact the coronavirus pandemic continues to have on the 
Town of Berkeley Heights, New Jersey and many local governments 
throughout my district and the country. The corona virus has decimated 
local revenues and increased costs and only Congress can provide a 
lifeline to small towns through direct and flexible funding.
  With a population of just under 13,500, the Township of Berkeley 
Heights in Union County, New Jersey has been hard hit by the Covid-19 
pandemic. We have witnessed 129 cases to date with 21 deaths and 
residents testing positive every day, adding to our overall caseload.
  Our local budget is set to be introduced before the state's extended 
deadline of April 28th while our second tax collection period begins 
May 1st. The timeframe does not allow our governing body to make an 
informed decision of tax collection versus expenditures. As a result, 
we significantly cut our spending to provide a zero dollar increase to 
our residents since the outbreak of the pandemic. Layoffs of part-time 
employees and cutting police radios, police cars, fire department gear 
and sewer department equipment and has been sacrificed this year amidst 
the financial crisis that our state, county and township faces as we 
follow Governor Murphy's Stay-at-Home order.
  As we remain at home to spare the lives of our family, friends and 
neighbors, our local budget faces shortfalls from: the closure of our 
municipal court and resulting halt in fees it generates; hotel 
occupancy tax revenue--which generally produces $250,000 in revenue 
directly to the municipality not shared with the Board of Education or 
County; Uniform Fire Prevention inspection decline due to social 
distancing rules; Little interest being earned on investment as a 
result of the Federal Reserve lowering interest rates to 0 percent; 
Anticipated lower-than-usual collection of current year taxes as a 
result of economic hardships experienced by our residents such as 
employment or loss of their small businesses; Cancellation of Spring 
and likely Summer recreation programs, halting fees into our Recreation 
Trust Fund, which pays for our recreation employees.
  Further, we also anticipate an increase in tax appeals from 
businesses for 2020. The Township already received notice of appeal 
from its two biggest taxpayers--Connell Office park and Nokia/Bell 
Labs--and anticipates that many small businesses will follow. 
Additionally, as a result of our Judgment of Repose, the Township is 
obligated to move forward with 6 redevelopment projects that have PILOT 
agreements attached to pay for a $32,000,000 municipal complex to house 
our police, senior, library, recreation and administration space. The 
facilities will be essential for our residents as we move through this 
pandemic into our new ``normal.'' Delays in redevelopment construction 
due to supply chain disruptions related to Covid-19 will likely impact 
future construction fees, which means anticipated revenue to the 
Township from these projects will not be realized sooner, when it is so 
desperately needed. Finally, we anticipate the State of New Jersey and 
County of Union will also face great fiscal challenges and therefore, 
the Township expects a decrease in grant money available for 
infrastructure repair such as roads and our sewer infrastructure, which 
has not been upgraded since constructed.
  Additionally, New Jersey municipalities have a legal obligation to 
pay the Board of Education and the county, even if our portion of taxes 
cannot be collected. This places a tremendous burden on small towns.
  It is crucial that smaller municipalities receive CARES 2 funds to 
help stabilize our local government and economies. I implore the United 
States House and Senate to pass legislation that will help small-town 
America.

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