Silk City has sent a request to the State asking for 28m dollars in Transitional Aid, exceeding the amount disbursed by the state last year — it received 21m last year. Transitional Aid is a temporary measure taken by the state to keep afloat straitened municipalities.
State wants to wean these cities out of aid program by gradually reducing the amount of money doled out every year. An idea that is unlikely to work for Paterson.
As a result of the housing crash, home values have come down dramatically, causing a reduction in the city’s revenue, which further forces it to rely more and more on State aid.
The city has cut spending as well: laying off a large number of police officers, cancelling festivals that cost thousands of dollars, and cutting pilot plans such as the Great Falls Spring water idea.
It has also increased taxes more than doubling the property tax rate.
Despite all the measures, it seems Paterson never has enough money to run its finances in a orderly manner.
Governor Chris Christie has said the city is badly managed; judging from that comment it may be difficult for Paterson to procure the amount it wants.