Case Study

Newark, New Jersey FY2007 Budget Assistance

The newly elected Mayor Cory A. Booker took office in Newark in July 2006, to lead the New Jersey's largest city. The Booker Administration found a City with a large and increasing structural budget deficit, weak administrative apparatus - particularly in tax collection - a large and expensive workforce, depreciating property values, a depopulated middle class, and limited economic development prospects.

PFM was hired to support the development of the FY2007 budget process allowing the City to make the most efficient use of limited time and resources available. Of particular focus was the City's presentation of the budget and its ability to articulate the status and the vision of the Administration to the City's residents.

PFM constructed a multi-year financial model which identified the size of the City's structural deficit, identified the City's major cost drivers, and projected the current and future costs of the Mayor's priorities. PFM revised the budget presentation including the creation of templates, addition of narrative and data, graphics, and other supporting information to improve communication of the City's vision, priorities, and financial condition. Additionally, PFM assisted in the authoring of targeted financial policies which are immediately related to the challenges facing the Administration as well as policies intended to aid the City in following "good-government" practices in the years to come.

As a result of the efforts of the City and the support of PFM, the City's FY2007 Budget was awarded the GFOA Distinguished Budget Presentation Award. It is the only municipality in the State with this recognition.