SP to Help Cover $139K Senior Center Deficit

When Scotch Plains agreed to enter in an agreement in 1993 with the Senior Citizen Housing Corporation (owner of the Lake Ave.senior complex) to help cover any budget shortfall, it was difficult to imagine the town would end up helping to cover a deficit of $139,000. On Oct. 1, 2003, the town firmed their agreement by signing a "standby assistance agreement", and recently the corporation has accrued the aforementioned financial shortage.

Before the town received the auditor's note, it had already been in the works to help the corporation reduce its expenditures. The town provided mulch and other services through the Department of Public Works, and plans to offer services such as lawn maintenance and snow plowing. When the issue was brought to Township Manager Christopher Marion, he said "This is the first time I'm aware of that the town would pay for anything out of pocket."

However, after further conversation, it was noted that the town would honor the commitment they had made seven years ago. Marion referenced that the payment would come out of the 2011 budget, due to the fact that the township cannot add to the current 2010 budget.

A month ago, the council passed a resolution to pay $46,000 for the complex's utilities, "to make sure the lights and water stay on," Marion said. "I looked at what I could pay for with the money I had" due to the fact the township could not pay for a 2009 item in the 2010 budget that is already in effect.

"Short-term option, we're paying the utilities," Marion continued, "The thing is, you've got to treat the root cause."

But the root cause is still murky. When asked about the likelihood that the deficit came as the result of mismanagement, Marion said "I don't have enough of a historical background to say, 'Yes or no'. I will say they've been responsive going forward…It seems like they have been running at a deficit for a few years, but I can't say for certain."

Councilman Kevin Glover said, "Their auditor is the same as the township's. There should be a ton of transparency. We've navigated this specific process and we hope it's over. Now the problem is looking ahead, making sure their expenses don't exceed their revenue."

Glover recognizes that because the corporation is truly a separate entity, "we have to make sure we don't go into a gray area" of mixing public and private institutions.

Patch has attempted to contact Senior Complex Corporation manager Kenneth Shatten for two weeks, to discuss the cause of the deficit and what changes will occur to prevent future financial mishandling. Unfortunately, Mr. Shatten has made no conceivable effort to be in contact to discuss the matter.