NEWARK

— Newark may be getting less money from the state, but the strings attached are even tighter.

The new memorandum of understanding between the state Department of Community Affairs and Newark lays out more conditions for the city receiving $10 million in transitional aid in 2012 than it did for the $32 million Newark received in 2011.

"The state wants to remain aggressive that we’re going to continue our efforts to reduce costs and increase revenues," said Business Administrator Julien Neals. "From that standpoint we’re all on the same page."

But Neals and city council members said that there were some elements of the pact that will rankle city leaders.

Among the new provisions are:

•A reduction of personnel costs in the offices of the city clerk and council

•Provisions to dock pay of council members for every day they postpone budget introduction

•Tighter controls on city car and fuel usage

•Outsourcing municipal court collections

"The only floor that addresses constituent concerns with any substantive result is the third floor," said At-large Councilwoman Mildred Crump, referring to council offices in City Hall. "I don’t need to reduce my staff I need to add to it."

She and several other council members argue that the flood of constiutent requests they receive is barely manageable with the staffing levels they have now, which is about five staffers per council member.

But the DCA, echoing a long-standing complaint of Mayor Cory Booker, said the council and clerk were not serious about cutting spending.

"Neither the office of the City Clerk nor the Office of the City Council has demonstrated an adequate commitment to cost restraint," the memorandum states. "The budgets of these offices are disproportionately high when compared to ... other municipal governing bodies."

South Ward Councilman Ras Baraka said the cost cutting measures echo priorities of the Booker administration and that the mayor is relying on the governor to fight his battles.

Baraka and others have sought state permission to enact numerous revenue-raising options — including a container tax at the Port of Newark and more revenue from the airport — but have been rebuffed.

"They have agreed to give us money that we should've and could've raised ourselves, " said Baraka.

Crump and Baraka said docking councilmembers' pay for a late budget was unfair.

"They are threatening us with penalty for a late budget but have not put similar stipulations on the Mayor where it originates," Baraka said. "If he gives us late or no info we have to pass it without review."

Not all council members, however, are opposed to the austerity measures.

"I agree that we need to cut costs and I hope that some of the recommendations I have made for the past few years are supported by my colleagues," said East Ward Councilman Augusto Amador.

At-large Councilman Luis Quintana said he agreed with the gas restrictions.

"We should give up our gas cards and we should pump gas at regular pumps like everybody does," he said.

As for outsourcing court collections, Crump and others said the quandary is the city could stand to lose jobs, but could also raise revenues — between $3 million and $6 million according to city estimates.

"You're caught between a rock and a hard place," she said.

City officials said for they are hopeful they will not need any transitional aid moving forward, but they will still have to operate under the state restrictions for at least a year. Transitional aid is emergency state funding for cities with budget deficits

While there remains some wiggle room in many of the provisions, the DCA said the measures exacted on Newark are similar to cities throughout the state that need extra aid and are not meant to be punitive.

"Conditions on municipalities that receive Transitional Aid are overwhelmingly similar for most recipients, but special conditions are placed in MOU's based on particular circumstances," said DCA spokeswoman Lisa Ryan. "Newark’s MOU contains provisions designed to encourage a more timely budget process and a need to plan for additional savings."

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