SPOTSWOOD - To borough officials, it was a case of insult added to injury.

The state Department of Community Affairs (DCA) rejected the borough's application for extraordinary state aid to help with this year's municipal budget, saying the town applied for the aid after the deadline.

The news came about a month after the town learned that the state would be cutting other forms of aid to Spotswood by nearly $374,000, which amounts to about 5 cents on the tax rate.

Borough officials said those cuts were the reason that the town was late in submitting its application for extraordinary aid last month.

Council President Curtis Stollen noted that when the 2008 municipal budget was initially prepared the borough felt that, due to its austerity and the town's relative economic well-being, it would not be eligible for extraordinary aid this year. Therefore, no application was sent. In fact, officials were pleased that they were able to wean the town off the aid. Towns are not supposed to rely on the aid, partly because of the chance that they will not receive any, or that they will only receive a portion of what they request.

After Spotswood prepared its 2008 budget, Gov. Jon Corzine announced his plan to cut Consolidated Municipal Property Tax Relief Aid (CMPTRA) aid to smaller towns such as Spotswood. Ironically, that made Spotswood eligible for extraordinary aid again, at least in the eyes of borough officials, who applied for the aid to make up for the lost state revenue.

But whether Spotswood was eligible may never be known, as the DCA swiftly declined the request, saying the application, received April 8, was due in March.

The loss of state aid leaves Spotswood facing an additional tax hike of about 6 more cents per $100 of assessed valuation. In the town's original budget for 2008, officials were planning on a tax rate increase of 4 to 6 cents per $100 of assessed valuation. Now, the potential tax hike could be at least 9 or 10 cents.

The Borough Council is still reviewing the budget and has not announced if any cuts will be made.

Mayor Barry Zagnit has written what CouncilwomanMarge Drozd referred to as "an impassioned plea" to DCA Commissioner Joseph V. Doria Jr., stating that the state's actions prevented the borough from having a fair shot of applying for the aid in time. Stollen said the borough is working with state Sen. Barbara Buono in its quest for extraordinary aid. Regardless, it is unlikely the borough would get the full amount requested.

Stollen said there is word that Corzine may change course and begin to wean towns off CMPTRA aid rather than cut it by the amounts previously announced.

"Everything is just totally up in the air," he said. "It's just totally inept."

The uncertain nature makes it hard for Spotswood to finalize its budget, and also, according to Stollen, even send out tax bills this summer.

The council needed time, after learning of the state aid cut, to revisit its budget, decide whether to apply for extraordinary aid and send in the budget and a formal aid application, Stollen said.

"We got the formal application in in a very timely manner, and as fast as we could," he said.

Councilwoman Marge Drozd said the state's actions have hurt Spotswood and many other small towns. She said Spotswood already uses many of the shared services that Corzine is asking towns to seek out.