TRENTON, NJ (WCBS 880) – Towns in New Jersey are having to get creative when it comes to cutting costs in this tough economy.

LISTEN: WCBS 880′s Sophia Hall reports

Hit by the bad economy, reduced state aid and a new two percent cap on property tax collections, most New Jersey towns are cutting back in municipal staffing, according to Bill Dressel from the New Jersey State League of Municipalities.

He said one way many towns are fighting the problem is by sharing as many services as possible.

“With a neighboring town, like tax collection, court services, recreational programs and garbage collections,” said Dressel.

Dressel also said towns are increasing prices for parking and other fees.