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July
28, 2006
Trenton,
NJ
LEAGUE
RESPONDS TO GOVERNOR'S ADDRESS AND START OF LEGISLATIVE
SPECIAL SESSION
Today begins
what we hope is the start of a productive special session,
and the realization of true and meaningful property tax
reform. In his address today, the Governor presented a bold
and outside-the-box blueprint for both property tax relief
and reform.
We appreciate
that the Governor noted that aid to municipalities has been
flat for five years, and that this eroding aid has placed
a strain on local government budgets.
We appreciate
his call to replace rebates with direct credits on property
tax bills.
We appreciate
the recognition that labor costs, such as pensions and other
benefits, inevitably drive up costs for governments.
We appreciate
his support for other sources of local revenues, including
but not limited to impact fees.
We welcome his
support for providing incentives to further encourage shared
services and consolidation, and his recognition that there
are current impediments for local governments to do this.
Additionally,
the Governor has called on a 4% cap on property tax increases.
This is something we all hope to achieve. We note that such
a cap would only be workable, however,: 1) if aid to municipalities
was annually adjusted for inflation and population growth,
which has not been the case for 5 years; 2) if local cost
drivers, such as pension and benefit costs and arbitration
awards, were similarly capped; and 3) if local governments
were empowered to adopt alternative taxes. Absent those
considerations, however, any cap will necessitate service
and program cuts.
Finally, we
appreciate that the Governor made it clear that if the State
Legislature fails to act this year, he will support a citizens'
constitutional convention next year.
If
nothing else, our taxpayers now know that if the State Legislature
fails to enact real property tax reform, then they themselves
can take the next crack.
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For
further information contact Jon Moran at 609-695-3481 ext.
21 or Bill Dressel at 609-695-3481 x22.
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