Auditor warns Carneys Point must cut about $700,000 to meet CAP limits

Fred Caltabiano, the township auditor, told the Carneys Point Township Committee on Feb. 14 that the township must reduce the 2026 budget by about $700,000 to comply with state-imposed caps.

Caltabiano said the township’s surplus remains "strong" because of measures taken in recent years but that the draft budget is currently over both the Appropriation CAP (established in 1977; typically 2½% of last year’s budget but can be raised to 3½% by local ordinance) and the Tax Levy CAP enacted in 2010 (set at 2%). He said he and CMFO C. Ehret will work to prepare a budget for introduction by the end of April and that sometimes the state offers relief mid- to late-budget season.

Why it matters: staying over either cap can prevent final adoption of the budget or require local action such as an ordinance to raise the appropriation CAP, use of one-time surplus or negotiated revenue arrangements. Caltabiano emphasized the trade-offs the committee will face as it balances services, staffing and capital needs.

The committee revisited PILOT agreements as one possible revenue approach. Caltabiano explained that payments in lieu of taxes for major properties change the way revenue is distributed: under standard property taxes roughly 40% goes to schools, 40% to county and 20% to the township, while PILOT arrangements can alter that split. He said warehouse PILOT receipts are being used, in part, to offset revenue lost when the township transitioned off prior CoGen payments.

Caltabiano and CMFO Ehret outlined the process ahead rather than proposing immediate votes: the auditor said the budget team will identify cuts and present a balanced proposal in the coming weeks. He left the meeting at 9:15 a.m. The Committee did not take formal votes on specific budget cuts at the session.