This month’s Legislative Update features an open letter from League
President Herbert D. Stiles, Jr., the Mayor of Elmer.

HOME RULE IS NOT THE SOURCE
OF OUR PROPERTY TAX PROBLEM

  “Home rule” is slowly turning into a four-letter word. Do away with home rule, some argue, by, for example, merging volunteer fire departments, and property taxes will go down.

  You have undoubtedly heard the talking points: our 566 municipalities, 611 school districts, 21 counties and 186 fire districts cause duplication of services. By consolidating local governments and services, you create greater efficiencies. No one, however, actually presents evidence to that effect nor do they consider the effectiveness and quality of the delivery of services.

Don’t get me wrong. If our policy makers had a blank map in front of them, there would not be 566 municipalities. I would hesitate to guess how many governments is the optimum number. And we do not oppose enhanced sharing of services or voluntary consolidation of local governments. It’s how you get there that matters. The decision to merge is best left in the hands of the voters.

Home rule is synonymous with self-determination: remove it or reduce it, and you infringe on the rights of voters. If the voters of two or more municipalities choose to consolidate, we support them. If, however, voters choose otherwise, that right must be respected. It would be a huge public policy mistake to attempt to slay the property tax dragon by disenfranchising voters.

With annual federal deficits running over $423 billion (not counting the costs of war); with the national debt now at a staggering $8 trillion and growing; with the State of New Jersey less than a month removed from a budget impasse due to a $4+ billion deficit; and with all of New Jersey’s 566 municipalities able to operate with balanced budgets year after year, which level of government is demonstrating efficiency, effectiveness and inherent equity?

Some argue that property taxes rise every year because of the profligacy of local elected officials. Inflation, however, has eroded state aid to municipalities. For the fifth straight year, local property taxpayers were denied annual inflationary adjustments as required by state statute. That denial pushed costs on to local budgets, and, in turn, property taxpayers.

Labor costs continue to drain local budgets. We all value and honor the hard-work of government employees. But there has to be balance in the process for determining salaries, pension and benefits.

The League of Municipalities, along with many others, has been pushing for a citizens’ constitutional convention to address the property tax crisis in this state. For four years, we have been told that the convention would take too long, and that the Legislature wanted to act immediately.

So, be skeptical when home rule is cited as the cause of our property tax dilemma. Home rule does not mean that there must be 566 municipalities, or any given number. Home rule means that the voters determine what is best for them. Home rule relies on local solutions, and if the state stopped paying lip service to the concept and instead empowered local governments, local solutions might just lessen the crisis in which we find ourselves.

This article appeared in the October 2006 Issue of the New Jersey Municipalities Magazine.