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For Cutting Property Taxes, These Aren’t The Sharpest Tools In The Shed

The governor has blamed everything and everyone for the highest property tax increase in four years. He continues to state that if only his ‘tool kit’ were passed, New Jersey’s property tax problems would magically disappear.

Closer scrutiny of the governor’s kit proves his claims are false and are merely meant to distract from his own culpability in property tax hikes. The governor cut over $2.4 billion in funding to schools and municipalities last year. That is why your taxes are going up. The tool kit will not make up that shortfall.

There are reforms that must be implemented, like pensions and health benefit reforms, which I have supported since 2006. I am committed to getting those done. But those reforms are not – and never were – part of the governor’s proposed tool kit.

First, let’s have truth in numbers. The governor started by saying there were 33 bills in the tool kit. Actually, there were 24 after items were combined. Now the governor says there are 20, because he finally realized that four proposals dealing with issues at colleges and universities have absolutely nothing to do with property taxes.

The Legislature did pass eight tool kit items. First was the creation of the two-percent cap on annual property tax increases, which the Legislature lowered from the 2.5 percent cap the governor initially proposed. Second was arbitration reform for police and fire contracts, which was heralded across the state by local officials as key to reining in property taxes.

Two others – comprehensive civil service reform and a cap on sick leave payouts for public employees upon retirement – were passed and sent to the Governor, who vetoed them. We have no reform in these two areas because the governor chose to kill reform.

Civil service needs to be reformed and modernized, but abolishing it will not lower property taxes. Only one-third of New Jersey towns are bound by civil service rules, and those towns actually have lower property taxes per capita than towns without civil service. Civil service was established to protect against political corruption and nepotism. It is puzzling that the governor wants to completely eliminate this protection.

Sick-leave payouts should be capped, but the governor vetoed a bill to do that because he wants to take away benefits workers have already earned. That may be a nice talking point, but it won’t stand up in court. And it would create a flood of new retirements as workers cash-out before the law would take effect. If the governor got his way, this tool would actually cost taxpayers even more.

Two other parts of the tool kit are already in comprehensive shared services legislation I am sponsoring with Assemblywoman Pamela Lampitt and Assemblyman Paul Moriarty, which goes far beyond what the governor envisioned, and which will move through the Legislature later this spring.

These are the only parts of the tool kit that will save you money on your property tax bill. We did them. The handful of remaining bills that the governor clings to won’t save you anything.

One would cap spending on state government operations – which already exists under law, and even if it did not, would have no impact on local property taxes. Another would allow local governments to use furloughs to save money – which they already can do as long as furloughs are negotiated.

Another bill to centralize all power over civil service decisions in the Civil Service Commissioner (read: czar) would only consolidate the governor’s power and do nothing to lower property taxes.

One bill would move school and fire commission elections to November – a move whose total property tax savings, according to the non-partisan Office of Legislative Service (OLS), would be “minimal.”

Others would change the way some employee discipline measures are handled (OLS estimated savings: $140,000), require the mailing of only one sample ballot per household (OLS estimated savings: $1.4 million), and allow municipalities to offset property tax delinquencies against state income tax refunds (OLS estimated net savings: zero).

The governor’s rhetoric does not stand up to simple math. The toolkit bills that haven’t yet been passed offer no real help from New Jersey’s crushing $25 billion property tax burden.