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Slow economy takes toll on Howell construction office BY TOYNETT HALL Staff Writer
HOWELL - As a result of the slowing economy and the current climate in the region's housing market, Howell officials announced that they will reduce the work force in the Construction Code Department.
Two employees will lose their jobs and two others will be transferred to vacantmunicipal positions.
According to a press release from the township, "The downturn in the building industry is resulting in a reduction in force for theHowell Construction Code Department. Municipal construction departments are mandated to be self-supporting. Unfortunately, with new construction essentially coming to a halt, revenues are considerably down, resulting in the inability to sustain the current work force."
According to the press release, there are four employees who will be affected by the reduction in force. Two employees of the department were moved to currently funded vacant positions and two employees are being let go.
"There were two administrative secretarial slots open within the township. Two of the four employees were [placed] into those positions, while the other two inspectors were terminated," Mayor Joseph Di- Bella said. "It is a very unfortunate situation. At the same time, I am very concerned about the township's finances and the 2008 budget. Over the next several weeks the Township Council will be forced tomakemany hard decisions to avoid a tax increase. Howell residents cannot afford to pay any increase in taxes."
In a written statement, Township ManagerHelene Schlegel said, "It is unfortunate that people are losing their jobs, but revenues are down and we are unable to cover our expenditures. Should the building industry take an upswing, these employees will be reinstated as needed."
Councilman Robert Walsh said, "There is a slowdown everywhere and layoffs are (happening) all over. The Construction Code Department by law has to be self-funding. The township manager, chief financial officer and department heads made the decision to let employees go because their department was not meeting expenses."
Although some observers have characterized the current situation in the housing market as a slowdown, Linda Bernaski, the president of the Shore BuildersAssociation of Central New Jersey and the owner of Palatial Homes Inc., said, "This is an excellent time to purchase a home due to the low interest rates. It is quieter than usual, but there is still activity if the homes are priced correctly. Buyers may be selling their current home for less than they would have a year ago, but they would still be purchasing with the same price adjustment. It is an even trade-off."
According to Bernaski, what is happening now in the housing market is "a perfect example of how people can see how the building industry directly effects the economy of New Jersey."
"Every regulation that prevents us from building directly affects the economy.Many people are employed by the building industry in this state," Bernaski said.
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