Dear Mayor:

By the end of this month, the State’s budget for its next Fiscal Year will be finalized. In your communications with your state legislators, please focus of three issues of particular importance.

I.    SALES TAX DEDICATION FOR PROPERTY TAX RELIEF

As reported in one of our May 11 letters, on Thursday, May 17, the Assembly Appropriations Committee held the constitutionally required public hearing on ACR-20, which would ask the voters to amend the State Constitution to annually dedicate one-cent of the sales tax revenue, for property tax reform. The proposal is now in position to be voted on in both Houses. In order to appear on this November’s ballot, it will need to be approved by three-fifths of the members of each House – 24 in the State Senate and 48 in the General Assembly.

Though the special session for property tax reform is over; the real work of producing fundamental, sustainable property tax reform has just begun. New Jersey is still overly dependent on regressive, excessive property taxes. The crisis continues for New Jersey families and small businesses. While this dedication alone will not end the crisis, it will represent a positive step in the right direction.

Please urge your representatives in Trenton to support ACR-20, sponsored by Assembly Speaker Roberts and Majority Leader Bonnie Watson Coleman. An identical resolution, SCR-137 has been introduced in the Senate by Senator Barbara Buono.

II.  FLOOD DISASTER RELIEF

In response to testimony presented to the Legislature by League President, Mayor Dave DelVecchio of Lambertville, Assemblymen Kip Bateman and Peter Biondi have introduced A-4174, the “Flood Disaster Relief Act of 2007.”

This bill would provide $20 million from the Surplus Revenue Fund for the purposes of flood relief.  It would create the “2007 Flood Relief Dedicated Account” in the Office of the Chief Executive. The funding would be used to provide assistance to individuals, businesses and governmental agencies that sustained property damage or loss as a result of the April 2007 nor’easter and its associated flooding.  Such monies could be used only to cover damage or losses not already covered by any other source.

A-4174 has been referred to the Assembly Environment and Solid Waste Committee. You can access the Committee Roster and contact information at http://www.njleg.state.nj.us/committees/assembly.asp.

III.   FUNDING RESTORATION REQUESTS

As reported in our February 23 State Budget Analysis, according to the Governor’s proposal, Extraordinary Aid is slated to be cut from $43 million to $25 million.

Extraordinary Aid is annually awarded, based on need and the availability of funding. Every year, applications for such aid exceed available resources. The proposed cut will, therefore mean that fewer municipalities will get any of this emergency funding and that those who do get funding are more likely get less than they need.

In his budget testimony, League President, Mayor Dave DelVecchio of Lambertville, asked the budget writing committees to restore this funding. Please contact your own representatives in Trenton and urge them to fight to restore this important source of property tax relief.

Very truly yours,

                                                                        William G. Dressel, Jr.
                                                                        Executive Director