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April 28 to May 4
2025 Budgets
As county municipalities lock down their budgets for 2025, looming uncertainties arise from the state and federal budget processes.
At the local level in Cape May County’s 16 municipalities, four towns produced a budget that required no increase in the local purpose tax rate. Avalon, Cape May City, West Cape May and Woodbine all adopted budgets with no change to the tax rate.
Four towns managed to keep the increase in their tax rate below 4%, North Wildwood (3.27%), Lower Township (2.4%), Wildwood Crest (2.3%) and Wildwood City (1.7%).
The landing spot for four other towns was between 4% and 5%: Cape May Point (5%), Middle Township (4.7% – as introduced), Sea Isle City (4.3%) and West Wildwood (4.1%).
The final four municipalities saw increases to their local purpose tax rate that were at or above 7%: Upper Township (9.9%), Stone Harbor (7.2%), Dennis Township (7%) and Ocean City (7%).
Cape May County for the first time lowered both its base tax rate and its total tax levy. The rate went down by 1.9 cents, or 10%, and the actual levy decreases by $671,000, with a total levy of $164.5 million, less than 1%.
The county tax rate is not a meaningful indicator of what property owners in the 16 municipalities will pay in county taxes since each town gets a district rate for county taxes based in large part on changes in the annual true value of real estate.
This is the third county rate reduction in a row, and the first in which there was any decrease in the levy. Some property owners will still pay more county tax than last year.
What now has to happen is a state budget being adopted by June 30 that does not impose any new burden on local budgets. There is also the uncertainty of federal funding, while Trenton lawmakers are already grappling with Gov. Phil Murphy’s record $58 billion state spending plan. The likelihood is that we have not yet seen the impact of federal cuts.
Climate Policy
Climate policy has been at the heart of intense debate this year. Many state Republicans blame an overly aggressive climate policy pursued by Murphy for rising rates for electricity.
The fear that voters will hold state Democrats to account for the electricity supply and pricing debacle has Assembly lawmakers scrambling to show voters they are actively seeking ways to reduce ratepayer burdens. Democrats have blamed federal-level regulatory groups, especially grid operator PJM Interconnection, even going so far as to call for investigations into possible market manipulation.
At the federal level, the first 100 days of the new administration have been extremely unfriendly to plans for large-scale offshore wind farms that the state hoped would contribute emission-free and renewable power to the grid, allowing for major reductions in fossil fuel electricity generation.
Meanwhile, the state moved ahead with the projected adoption of major new land use rules even as Murphy packs his bags. The controversial Resilient Environments and Landscapes regulations, known as REAL, are on schedule to be adopted by the beginning of August, creating new inundation zones and elevation requirements, among other things.
On June 10 voters will go to the polls to select from five Republicans and six Democrats running for governor; the two party-endorsed candidates will then battle for the next several months for the office. While this is happening the Board of Public Utilities is working to produce a new version of the state’s Energy Master Plan.
If this sounds a little odd, it is because it is. A regulatory body appointed by the outgoing governor with only months left on his term is laboring to create a state Energy Master Plan that has to meet the perspective of a new chief executive.
With REAL and the new energy plan, state officials are trying to solidify Murphy’s vision for fighting climate change even as the person who will occupy the governor’s office will change by January.
Following June 10, voters will have an opportunity to examine the positions of the two candidates for the top office and decide for themselves where the best climate policy lies.
Objecting to the current climate policy is one thing. Putting in place another policy is quite another.
Legislative Overload
Last week in The Wrap we spoke of the panic in Trenton as electricity rates continue to rise, voter anger increases with them, and there is a perceived need by Democrats to focus that voter anger someplace other than on Trenton lawmakers. Republicans smell blood in the water and circle with almost daily accusations of blame laid at the feet of Murphy and a Democratic Legislature that he actually kept at arm’s length, preferring to set policy through executive orders.
The newest evidence of this panic is an Assembly Telecommunications and Utilities Committee hearing set for Monday, May 5 (after the Herald’s print deadline) at which no fewer than nine bills introduced by Democrats will be discussed and considered.
The fact that the activity is concentrated in the Assembly is not surprising. No Senate seats are on the ballot this fall, but all 80 Assembly seats are. All but one of the nine bills have been introduced in the last two months. This is more testimony to the perceived need of Assembly members to be seen addressing the problem. The nine bills have 16 different primary sponsors.
Lest you think only the Democrats are casting about for a visible role in combating rising power rates, you need to know that no fewer than 18 Republican bills have been introduced on these topics. Those bills have just not risen to consideration at a committee hearing, especially in an Assembly in which current control rests with the Democrats, who hold 52 of the 80 seats.
So what do these nine bills do?
Almost all of them tell the BPU what to do. If passed the bills would have the BPU take certain actions regarding claims of excess profits by utilities. They would require that the BPU conduct a full rate review before approving any rate increases. The agency would have to determine and consider the lowest return on equity calculation before any base rate increase.
Unsure that federal authorities will respond to Murphy’s demand for an investigation of potential market manipulation, one bill would assign that task to the BPU. Plans would have to be developed and reviewed for AI data centers and for the use of small modular nuclear reactors. One bill goes so far as to set standards for experience and training of BPU members.
Week in Review
*On May 13, Sea Isle City voters will have something they seldom have in a municipal election – a choice. There are five candidates for three seats on the five-member City Council.
*Leaders from the state’s four regional power distribution utilities were part of a joint legislative panel on April 25 as lawmakers tried to find solutions to the rate hikes about to hit electricity ratepayers June 1.
*Avalon plans to update an ordinance adopted in 2023 about the annual registration of businesses and the requirement to file insurance information.
*A resident of Cold Spring, Lower Township, was walking on the beach, Monday afternoon, looking for fossils and shells, when he noticed what seemed to be an artillery shell.
*At the Monday, April 28, Upper Township Committee meeting, residents of Osprey Cove Mobile Home Park told the committee the management was raising their lot rent 30%.
*Rep. Jeff Van Drew (R-2) announced April 29 that he has gotten an agreement from the federal Environmental Protection Agency to engage with New Jersey state leaders to urge “a more moderate and workable approach” to state Resilient Environments and Landscapes regulations due to be adopted by end of summer.
*Student-athletes at Atlantic Cape Community College have received scholarship offers to continue their studies and athletic careers at Division I and II colleges and universities across the country.
*Beth Judah Temple in Wildwood, which recently was listed on the New Jersey State Register of Historic Places, will be celebrating the listing and its congregation’s 110 years of existence in a three-day gala this month.
*Stone Harbor has received a $750,000 grant from the state Department of Environmental Protection for an all-inclusive “Jake’s Place” playground at 82nd Street, Mayor Tim Carney announced.
*The Lower Cape May Regional and Bridgeton High School softball teams combined for 66 runs in a recent slugfest in Bridgeton.
*The county will be resurfacing the southerly portion of East Creek Mill Road (Route 347) beginning at Route 47 and continuing north for 1.35 miles tonight through Friday, May 9.
*A small crowd gathered in Sea Isle City May 1 in the St. Joseph Catholic Church parking lot beside a folding table stacked with tools. Hammers, crowbars, hoes, power drills and other implements of the trades were piled high to receive a blessing – in the form of sprinkled holy water – from the Rev. Perry Cherubini.
*Cape May County not only has an aggressive rabies program, there is no program like it in the entire state, Cape May County Health Officer Kevin Thomas says.
Spout Off of the Week
Lady on the mall today had her dog relieve himself on Catholic Church hedge. Then she let dog drink water out of fountain and said let’s wait for daddy. Daddy came along and they all continued down the mall. Like a fairytale.
Cape May
