The recently-signed property-tax limit cannot hold, as a report appearing this morning in The Star-Ledger (Newark) makes clear. The exemptions that it allows, including employee health-care costs and pension costs, are the worst budget drivers and are already set to rise far beyond the limit.
Lisa Fleischer of The Star-Ledger's Statehouse Bureau lays it out here. New Jersey towns will be charged 12 percent more this year for health-insurance premiums, if current recommendations for rate adjustments are approved, as usually happens. The head of the New Jersey League of Municipalities cited this as a prize example of why no town could hope to hold property-tax increases to a 2 or 2.5 percent limit from year to year.
The property-tax limitation bill (S-29) reduces the allowed annual property-tax increase from 4 percent to 2 percent, but allows increases beyond this limit for health-insurance costs, pension costs, debt service, and "emergencies." One point of controversy exists regarding who is authorized to declare an emergency. According to Paul Mulshine, both Governor Chris Christie and Senate President Stephen M. Sweeney told him specifically that Local Finance Boards will not be allowed to declare their own emergencies, and will have to cite State and/or federal emergency or disaster declarations.
| N.J. Gov. Christie signs 2 percent property tax cap bill |
Mulshine, as is perhaps only to be expected, does not believe that for one microsecond. Neither do certain contributors to the Lettters to the Editor section who weighed in on property taxes. More than that, Mulshine and many other commenters continue to assert that Christie has deliberately shortchanged suburban communities in favor of the city dwellers that are the natural constituency of Education Commissioner Bret Schundler (who served a term as Mayor of Jersey City). New Jersey's cities tend to have far fewer ratables--and, of course, the poster children for such alleged urban favoritism are the "Abbotts," created by court order.
But half the people commenting on the matter appear to accuse the other half of unfairly laying all the blame on Christie, as if Democratic majorities in the New Jersey Senate and Asssembly either:
- Did not exist, or
- Would be of no moment, had Christie exercised his powers in a manner that would have demonstrated greater political courage--and also in a manner that no one seems willing to specify.
A few commenters suggested some of the same solutions that Steve Lonegan of Americans for Prosperity/New Jersey has suggested, plus a few more: phase out the defined-benefit plan, enroll all new hires and non-vested employees in 401(k) or equivalent plans, re-examine coverage for elective procedures, and eliminate the practice by which employees may "bank" unused vacation and sick days from year to year and cash them all out upon severance. (Typical employers will offer year-to-year accumulation for vacation, but not for sick days.)
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Comments
Employee health care and pension costs are the very things that require cost containment. Exempting them dooms the cap. Most Democrats are not interested in containing costs or rising taxes except when political expediency demands it.
Our city is getting ready to be 'taxed' again too. More taxes, more taxes, more taxes. When will it all end or will it ever end? How about those stamps going up again? Pretty soon it will be cheaper to buy a "pony" to deliver the mail. Thanks Terry ;)
Reduce the size of the government, reduce the expenditures (not by cutting SCHOOLS for children) and than implement a better flat tax style approach.
I like the limiting approach, as long as it is not in name only.
Another great article thank you!
So, something a politician says is one thing turns out to be something else? And we're surprised why?
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