From police officers to streetscape improvements, municipal officials have used state Urban Enterprise Zone money to fund local improvements without dipping into the town coffers. But under Gov. Chris Christie’s proposed FY2011 budget, those funds would be frozen while the program is under review. In Hudson County, Christie’s proposal would affect Jersey City, Bayonne, Union City, North Bergen, Kearny, Guttenberg and West New York. Statewide there are 32 zones in 37 municipalities. “You are putting a tremendous burden on all these municipalities that have no money,” said Oscar Miqueli, coordinator of the West New York UEZ.
Businesses in a UEZ are permitted to charge half the state’s 7 percent sales tax, or 3.5 percent. Some of the money goes to the state, but most of it is sent back to the communities for UEZ programs.

Christie has proposed suspending the revenue sharing for FY2011, which would allow the state to keep the entire 3.5 percent in sales tax.

The state Economic Development Authority would be charged with reviewing the program and analyzing whether it spurs economic development.

During fiscal year 2009, the state collected nearly $130 million in UEZs.

Christie’s budget must still be approved by the Legislature.Sen. Nick Sacco, the mayor of North Bergen, said 20 senators, who are also mayors of UEZ municipalities, are working to block the cuts.

In North Bergen, the UEZ funded traffic signals along Bergenline Avenue, security cameras, roadway improvements, and about $3 million annually in police, fire and public works salaries.

Since 2008, Jersey City has used $5.5 million in UEZ funds to hire 48 police officers. The UEZ also funded police vehicles, the CCTV network, and streetscape improvements on Newark Avenue and Christopher Columbus Drive.

“It will affect the city’s bottom line,” said Roberta Farber, director of the city’s UEZ. “There are essential services that the UEZ helps the city support. It also helps us leverage state and federal matching funds.”Miqueli in West New York called the cuts “devastating.” The West New York UEZ pays for 10 police officers, a cleaning crew, streetscape improvements and a marketing campaign.

In Kearny, the program pays for two patrolmen, a public works employee, and a shuttle bus driver. Star Ledger