In a column published in The Star Ledger and at NJ Spotlight, Mark Magyar says no. Magyar says that like all the governors before him, except Florio, Christie is simply tinkering at the margins and that whether Christie serves one term or two, New Jersey’s property taxes will still be the highest in the nation.
Magyar, who was a policy advisor to Chris Daggett’s Independent gubernatorial campaign against Christie and Jon Corzine, makes the case that unless New Jersey increases income taxes and sales taxes with the State taking over a higher burden of education funding, that property taxes will continue to be a dispropotionate and inequitable source of funding for education and government services.
A good tax system is generally considered to be one in which income, property and sales taxes are in some rough balance, with each providing somewhere between 30 percent and 40 percent of total revenue for these three major taxes. That is the case in most states, but it is not the case in New Jersey, where property taxes actually make up 58 percent of the income/property/sales tax pie, with income taxes accounting for just 24 percent and sales for the remaining 18 percent.
The only way to actually lower property taxes in New Jersey to a competitive level with other states is to shift billions of dollars of the cost of K-12 education or municipal or county services to another major tax or taxes — with the income and sales taxes being the most logical choices — while simultaneously making sure that an effective cap prevents any new increase in school district and local government spending.
That is what Democratic Gov. Jim Florio tried to do in 1990 when he dedicated half of his $2.8 billion tax package to property tax relief, but most of the money was quickly eaten up by school districts and municipalities for new spending, and by the second year property taxes were rising again as rapidly as ever. Voter repudiation of Florio led to the election of a Republican legislature and GOP Gov. Christie Whitman, and scared politicians in both parties away from any meaningful attempt at overall tax reform.
However, Magyar’s argument is a non-sequitur to the current debate happening in Trenton (and nationally).
Even if Christie and the legislature were to institute Steve Lonegan’s flat tax, increasing income taxes on the poor and middle class while reducing them on the rich, and even if they instituted Chris Daggett’s $4 billion sales tax increase, and used the new revenue to reduce property taxes, the problems that Christie is addressing would remain. They would just be paid for differently.
New Jersey, and many other states, has too much government. There are too many government employees making too much money and getting benefits that are too generous to sustain regardless of how the revenue is generated.
It is only by reducing the size of government on all levels, which means less government employees making less money with less generous pensions and benefits, that our overall tax burden will decrease. That is what Christie’s reforms are designed to do. By forcing the downsizing within the current system, rather than radically changing the way New Jersey taxes its citizens and then implementing cuts, Christie is demanding that municipal, county governments and school boards make the hard choices now. If Christie did it Magyar’s way, government and taxes would continue to expand.
Let’s first reduce the size of our governments. Once that is done we can address the way we pay for them.
While criticising President Obama’s comments to the nation’s governors about public employee unions and health care, Governor Chris Christie told reporters that he will not be governor in 2014, according to Herb Jackson of The Record.
“I’m not going to even be governor in 2014, so the fact that he’s offering flexibility in 2014 is really of no moment to most governors who need to balance their budgets this year,” Christie said.
If reelected in 2013, Christie would be sworn in to his secord term in January 2014.
The Governor’s announcement today that the New Jersey Sports and Exposition Authority would issue, in the near future, a Request for Proposals for the lease of Monmouth Park, including assignment of additional off-track wagering operations, comes as no surprise to the Oceanport Task Force. Any operating lease must protect the Borough’s tax payment as this small community of 6,000 works diligently to overcome the approaching closure of Fort Monmouth (September 2011); reinvents local government in response to the Governor’s 2% cap law; and works cooperatively with its largest taxpayer, Monmouth Park.
We believe the Borough and the Thoroughbred Horsemen have similar goals for Monmouth Park and that both have much at risk as the transition takes shape for horse racing. Horse racing is an important and vital cog not only Oceanport’s economy and the economy of Monmouth County, but for the entire State of New Jersey. Horse racing contributes 7,000 jobs, $110 million in federal, state and local taxes, and 57,000 acres of working agricultural landscape and open space to our “Garden State”.
Equally important for Oceanport is the repayment of a $23 million dollar loan made to the NJSEA that brought NJ Environmental Infrastructure Trust funds to protect Branchport Creek from further contamination, which is essential for the continued operation of the racetrack. Oceanport considers the financing an investment in our quality of life through the protection of the Shrewsbury River system that surrounds our borough.A-2926 authorizing “exchange wagering” and S-2229 to permit pooled wagers; we applaud the Governor’s signing of S-11 and await positive action to include the $15 million purse supplement in the live racing schedule with a suitable length of season. As of Feb. 25 no action had been taken on the status of Monmouth Park’s 2011 racing schedule. By law, the New Jersey Racing Commission must award 141 Thoroughbred dates. Last year Monmouth Park’s “Elite Summer Meet” raced 71 days. Purses almost tripled—about $20 million came from a now expired casino purse supplement—and total pari-mutuel handle increased $123 million for the year. This was a significant return on the investment made toward the purses.
Our own Oceanport Task Force on Monmouth Park has continued to maintain the position that VLT’s, slot machines, or an all-out gaming casino in the Meadowlands is the only way to protect horse racing in New Jersey. The surrounding states of New York, Pennsylvania, Delaware and Maryland now all have some form of gaming at their race tracks. This uneven playing field enables our competitors to lure New Jersey horseman out of State with larger purses and better quality horse racing.
In addition to the enactment of
Oceanport Task Force representatives have maintained an open dialogue with the Hanson Commission, the NJSEA, the Thoroughbred Horsemen and others that will likely play a key role in preserving horseracing at Monmouth Park.Several interested operators have made introductions to the borough and will likely compete to operate the racetrack.
The Oceanport Task Force on Monmouth Park
ChairMichael J. Mahon, MayorCo.-Chair Gerald Briscione, Former Council Member
The municipal chairs of western Monmouth County are hosting a candidates forum for those seeking the GOP nomination for Monmouth County Freeholder tomorrow at 9:30am at the county library on Symmes Road in Manalapan. The chairs from the region are scheduled to meet following the forum to discuss endorsing a candidate.
Manalapan Mayor Andrew Lucas will have the home field advantage. Wall Committeeman George Newberry and Spring Lake Councilman Gary Rich are rallying their supporters to attend the event.
With the screening committee meeting to choose a candidate for the party line a month away, it might be early for a block on chairmen to announce an endorsement. The field currently consists of Lucas, Newberry and Rich. None of the three are considered a lock for the nomination in what is shaping up to be a very competitive race.
Rich, who is making his third bid for a Freeholder nomination, now has the backing of former Red Bank Chairman Jim Giannell. Giannell’s relationships with chairs in the Two Rivers region and the Bayshore are a significant boost to Rich this time around.
In the fight for the 2006 nomination, Giannell threw his support to Lucas during a wild and contentious nominating convention. Lucas won the nomination but he and Giannell later had a failing out when Lucas did not support Giannell against Adam Puharic in the race for county chairman.
To a certain extent, Rich vs Lucas is a battle for influence between Giannell and Manalapan Chairman Steve McEnry and his loosely aligned western Monmouth chairman’s group.
Newberry has the strong support of the Wall Township Republicans. County Clerk Claire French’s support of Newberry is significant. The Rich camp and the Lucas camp both consider Newberry to be County Chairman Joe Oxley’s choice, despite Oxley’s efforts to remain neutral through the process. Oxley is the Wall Township Borough Attorney.
All three candidates are counting votes and think they have enough support to win a race that like last year’s contest is looking to be closely divided. Last year Tom Arnone beat Tom Wilkens of Middletown by 4 votes. Rich came in third, but only 12 votes separated him and Arnone.
However, the field of three candidates may expand or change.
Lucas has been telling people, including MoreMonmouthMusings, that he will not ask the screening committee for the nomination unless he is confident that he has the votes to win. He told MMM that at this point he thinks he has the votes and has no intention of dropping out.
But some have heard Lucas’s words to mean that he might drop out. This has led others to consider entering the race. Howell Mayor Bob Walsh is the most notable potential candidate.
Walsh, a Republican who was elected as an Independent in Howell, declined to enter the Freeholder nominating race earlier due to an family matter concerning his son’s health. That situation is now managable and Walsh has his family’s support to run if he so chooses. Walsh told MMM that he won’t run against Lucas with whom he is very friendly, but that he will run should Lucas drop out.
Newly Constituted Political Club Plans Greater Engagement and Relevance
Princeton, NJ – Feb. 23 – The annual re-organization meeting of the Republican Association of Princeton was no ordinary affair on Wednesday night. Many new members in a crowd of 100 assembled at the Nassau Club in Princeton to elect Scott Sipprelle as the club’s new President and to approve an amendment to the organization’s by-laws that broadens the reach of the organization beyond the Princetons while ushering in a new name, “The Lincoln Club of New Jersey.”
In a room filled with many supporters of Sipprelle’s 2010 Congressional campaign for the NJ-12 seat in the US Congress, the incoming President described his vision. “Good government is about our values and it requires good, and sometimes difficult, choices about the way we live. It is not just about doing what is most expedient to win one election.” Sipprelle vowed to expand the efforts of the Lincoln Club in the area of issues education and community engagement, while also working to support the strongest Republican candidates for local, state, and federal office in New Jersey.
Along with Sipprelle, a new slate of officers and directors was elected for one year terms. The new governing body hails from five different towns in Mercer, Middlesex, and Monmouth counties.
The Lincoln Club of New Jersey is an independent political club that educates the public on critical issues, promotes initiatives to build healthier communities, and advocates for good government by supporting the most qualified Republican candidates for local, state, and federal office in New Jersey.
Guess who showed up uninvited to an intimate gathering of Monmouth County Republican leaders at the home of Diane and Mickey Gooch on Tuesday evening.
The invitation only event was first intended to introduce those invited to Sam Raia, the new NJ GOP chairman. Raia cancelled on Monday, but the Gooches went ahead with the event in order for their friends to get to meet Monmouth County Freeholder contenders Andrew Lucas, George Newberry and Gary Rich.
Someone showed up uninvited. I bet you guess who it was on the first try.
Red Bank Councilman and NJ Turnpike Authority Treasurer Michael Dupont told Red Bank Green that he is still the Borough Attorney in Sayreville and that he’s humbled that he got the appointment.
Sayreville Mayor Kennedy O’Brien saysthat Brian Nelson is the Borough Attorney for the duration of the temporary 30 day appointment that O’Brien made on February 14th. The Sayreville mayor intends to appoint Nelson for the remainder of the year.
O’Brien also said that the reported savings of $115 thousand that Sayreville taxpayers would enjoy due to DuPont’s appointment at $7500 per month, compared to the prior attorney’s $19,000 per month fee is exaggerated because DuPont’s fee does not include the costs of litigation. Nelson’s bid of $12,500 per month does include litigation.
O’Brien said that DuPont was ineligible to be appointed because his pay to pay paperwork was not submitted on time. DuPont told RedBankGreen that his paper work was fine and that he personally reviewed it.
MMM has calls into DuPont and Nelson. More to follow as we pull of the threads of this tangled web.
Achieves New Normal in Budgeting By Maintaining Fiscal Discipline and Funding Key Priorities for New Jerseyans
Trenton, NJ – Advancing his vision for a New Normal in state budgeting, Governor Chris Christie today presented a $29.4 billion budget for Fiscal Year 2012 that cuts real spending for a second consecutive year. The Governor’s Budget proposal includes $200 million in focused tax cuts, provides additional property tax relief, increases school aid and funds a reformed state pension system, while preserving or increasing funding to protect our state’s most vulnerable citizens. The Fiscal Year 2012 Budget marks a departure from the Trenton tradition of budgeting to meet deficit projections that embrace wish-list spending by legislators and assume continuous funding increases that irresponsibly ignore actual revenue sources and the fiscal health of the state.
The Governor’s Budget – which reduces real spending by 2.6 percent from the current fiscal year – hits the reset button on the state budgeting process and starts with the refreshing assumption that budgeting and spending must be reality-based and zero-based. The New Normal means developing a bottom-up approach – establishing priorities and funding them based on revenue that is actually available and predictable versus the old approach of assuming every line item and program will automatically be funded at the same or higher level than prior years.
“The old way of budgeting and thinking must be stricken from our collective minds if we are to successfully emerge from this fiscal crisis with permanently reformed budgeting and spending habits,” Governor Chris Christie said. “This is a new paradigm for state government – a New Normal – that cuts and spends responsibly, incentivizes our local governments to do better with what our taxpayers entrust to them, and causes businesses to feel welcome and want to stay and expand or relocate to our state.”
The Governor’s Budget proposal adheres to necessary spending and budgeting discipline, but also meets New Jersey’s most vital spending priorities. Among those priorities in the budget:
·Increases education aid to every school district in New Jersey by a total of $250 million;
·Fulfills the statutory commitment to make a $506 million payment to a reformed state pension fund, representing the first funding to the defined benefit plans since fiscal year 2009;
·Provides $200 million in job-creating, strategic tax cuts that are responsible and sustainable;
·Doubles funding for the Homestead Rebate to provide direct property tax relief in the form of a property tax credit under the newly named Homestead Benefit program;
·Protects municipal aid and keeps funding at fiscal year 2011 levels to help towns meet the new 2 percent property tax cap (while decreasing by 10 percent the category of Special Transitional Aid to cities, in keeping with the Governor’s pledge to end cities’ reliance on the aid as they adopt best-practices budgeting to improve fiscal and management reforms); and
·Increases and secures New Jersey hospital funding by a total of $20 million, and increases funding for student financial aid by the same amount.
The Governor’s Budget takes all possible steps to maintain the safety net for New Jersey’s most vulnerable and at-need individuals and families. From prescription drug aid for seniors to helping low-income tenants stay in their homes, the Governor’s Budget includes billions of dollars and:
·Preserves critical spending and fully funds the fiscal year 2011 increases to the Pharmaceutical Assistance to the Aged and Disabled (PAAD) and Senior Gold Prescription Assistance Programs without increases in co-pays or eligibility – keeping it one of the most generous such benefit programs in the nation;
·Allocates $20.4 million to help the developmentally disabled lead richer, happier lives through new community placement and services, and funds day programs and other services; similarly, the budget continues and expands funding for the requirement that the state expand the number of residential and community settings for New Jersey’s mentally ill;
·Preserves the current level of support for higher education, after years of cuts, while increasing student aid programs by $20 million and providing $15 million for capital improvements at community colleges;
·Provides resources to keep 4,300 low-income citizens in their homes and apartments, including $25 million from the New Jersey Affordable Housing Agency Trust Fund and $9 million from the Housing and Mortgage Finance Agency; and
·Avoids an increase in NJ Transit fares and expands bus service to select growth markets.
The damage caused by years of fiscal mismanagement, coupled with the lingering effects of the national recession, will continue to restrain state spending for years to come. The reality is that the New Normal of the current economic and fiscal climate necessitates more painful choices in how the state allocates finite taxpayer dollars. Facing up to those realities, the proposed budget continues on the path of making difficult, often painful choices in nearly every department. Funding in even worthwhile, popular programs is reduced or eliminated in order to fund priorities.
Governor Christie will continue to insist that the shared sacrifice be spread among state employees as well, including in payment of a fair share of medical costs. By increasing co-payments and premiums to levels still below what federal employees pay, the state will save $323 million that will be used to pay for other critically important programs – and prevent increases in some of the highest sales, income and property taxes in the nation.
Finally, to pave the way for the best possible outcome for our state and its people as we deal with the New Normal and emerge from recession, the Governor intends to better position our businesses and attract new ones with tax cuts, reform and incentives to spur job growth and business expansion. To that end, he proposes a comprehensive but phased-in program of $2.5 billion in job-creation incentives over the next five years. As part of the program, Governor Christie is proposing for Fiscal 2012 tax cuts and reforms resulting in approximately $200 million in savings for businesses.
The package outlined by the Governor increases the state’s competitiveness in a responsible and sustainable manner by providing critical tax reform and incentives across a variety of tax-policy areas, including: loss carry-forward relief for small businesses, a reduction of the S-corporation minimum tax, increasing the credit allowed for research and development investments, exemptions for business software technology reinvestment, increasing funding for economic development programs, and the phasing-out of the Technology Energy Facility Assessment to provide needed relief from New Jersey’s already-high energy costs.
Governor Christie has committed to only putting in place tax cuts and incentives that are paid for within the context of a Constitutionally-balanced state budget. By providing for a phase-in of the program, the fiscal impact rises with the expected expansion of the state’s economy while minimizing the impact on the state budget each year.
The budget proposal, a representation of the Governor’s commitment to maintain fiscal discipline, also outlines a bold reform agenda to take on the big issues facing New Jersey, including the Governor’s comprehensive reform plans to restore fiscal sanity to out-of-control pension and health benefits systems, make 2011 the Year of Education Reform to bring the opportunity of a high-quality education to every child, and the pro-growth, responsible package of tax reforms and incentives to create Jersey Jobs and increase New Jersey’s competitiveness, as outlined above.
