The Dismantling Of Christie’s “Bi-partisan” Reforms

photo credit: Tim Larsen/Governor’s Office

It’s beginning to look like Governor Chris Christie’s Boulevard of Compromise is a dead end.

The 2% property tax cap is under attack, as the Trenton Democrats are on the verge of passing an “extension” of the Interest Arbitration Award Cap that eliminates the cap on most arbitration awards and increases the cap on the remainder of the potential awards by 50%.

In my piece last night about the Interest Arbitration Cap, I raised the hope that published reports that Assembly and Senate committees cleared an identical bill that guts the cap were inaccurate because Senator Mike Doherty was co-sponsor of the Senate bill and because of Senate President Steve Sweeney’s comments about the cap at his Town Hall Meeting in Keansburg last week.  It turns out that was wishful thinking. MMM has learned the bills are identical and, inexplicably, Doherty is a primary sponsor of the Senate bill, giving Sweeney and Assembly Speaker Vincent Prieto “bi-partisan” cover.

Doherty has yet to return our call for comment.  We’ve been told his attitude about the bill he is sponsoring with Sweeney is “a bill that will pass is better than no bill.”

Doherty has a point, albeit a minor one.  If no bill passes by April 1, there is no cap on Interest Arbitration awards at all.  If the bill that cleared through committees yesterday passes the full legislature and is signed by Christie, there will be a 3% cap on a minority of municipal government labor contracts for the next few years.  If Christie vetoes the bill, even conditionally, there is no arbitration cap.  Either way the property tax blaze is about to be reignited and/or the pain inflicted upon municipalities will be so great that consolidations and mergers will be forced indelicately.  The backdoor destruction of municipal governments appears to be Sweeney’s undeclared plan.

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Trenton Democrats Poised To Blow Up The Property Tax Cap

New Jersey property taxes will likely resume the double digit annual growth that occurred under the McGreevey, Codey and Corzine Administrations if Assembly Speaker Vincent Prieto’s version of the of the Interest Arbitration extension becomes law.  Either that, or municipal governments as we know them will cease to exist, succumbing to a long and painful death of higher crime and reduced services and capital improvements.

A 2% cap on interest arbitration awards in labor disputes was a key component of the 2% property tax cap negotiated between Governor Chris Christie, Senate President Steve Sweeney and Prieto’s predecessor, Sheila Oliver in 2010.   It worked.  Arbitrators made awards of less that 2% to police and fire fighters unions and property taxes rose less than 2% per year over the last four years.

The problem is Oliver insisted that the arbitration cap expire on April 1, 2014.  Now, we’re a week before the arbitration cap expires and Prietro is gutting the cap by passing an extension of the law that exempts contracts that were awarded less than 2% during the last three years from any future caps and raises the cap to 3% on contracts that have not been negotiated since 2010.

The math will never work.  If property taxes stay capped at 2% but the primary cost of property taxes, salaries, are not capped or are capped at 3%, municipal services will disappear. Police will be laid off, with the junior, lower paid officers being let go first, leaving the older and more highly paid officers to run drown the inevitable increase in crime.  Towns will go bust.  The state will take over municipal governments and force consolidations.

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Sweeney: Interest Arbitration Will Pass Senate

Monmouth County Freeholder Serena DiMaso, Keansburg Deputy Mayor Jimmy Cocuzza, Congressman Frank Pallone and Senate President Steve Sweeney talk before Sweeney’s Town Hall Meeting in Keansburg. Pallone was not impressed. Click for larger view.

Senate President Steve Sweeney told MMM today that he expects a key provision of New Jersey’s 2%  property tax cap that is set to expire on April 1 to be extended.

The interest arbitration provision of the property tax reforms passed with bi-partisan support three years ago caps arbitration awards in government labor disputes to 2%. Since they’ve been implemented the average arbitration award resulted in salary increases for local government employees to 1.86%–the lowest in 20 years. The provision will expire on April 1 unless extended by legislation.

“It’s my bill,” Sweeney said, “I’ll pass it next week.”   Ask if the arbitration cap would become permanent or extended with another sunset provision, Sweeney said, “That’s what we’re working on now.  I’d just assume we done with it, but we’ll get the best we can.”

Sweeney said that while negotiating the original property tax reforms that he favored a 0% cap. “That would force municipalities to, if not consolidate, to share, to share services.”

Sweeney spoke to MMM after his sparsely attended Town Hall Meeting at the Bayshore Senior Day Center in Keansburg this afternoon.

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O’Scanlon: Time to make Interest Arbitration Law permanent

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Property tax battle: Deadline looms on expiration of key law

Property tax battle: Deadline looms on expiration of key law (via NJ.com)

TRENTON — Mayors say a group with an obscure and achingly bureaucratic name has been the most important tool in slowing the growth of New Jersey’s property taxes, the highest in the nation. For the last three years, arbitrators who decide contract…

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Freeholders Introduce Budget With $6.3 Million Spending Decrease

The Monmouth County Freeholders did more than fight over Andrew Lucas’ farm last week before voting to approve their portion of the $1.152 million purchase of his development rights.

By a unanimous 5-0 vote the all Republican board introduced a 2013 budget that reduces county spending by $6.3 million.  The amount to be raised by property taxes will remain at the 2010 level.  Spending is budgeted to be below 2008 levels.

“We continue to face the pressures of increased fixed costs and reduced revenues, but were able to reduce the total budget below 2008 levels and maintain a zero increase to the tax levy,” Freeholder Director Thomas A. Arnone said. “As has been the case for the past several years, county departments were asked to cut their budget allocation proportionately to help this board reduce the impact on the taxpayers.”

The budget appropriates $481 million in spending. $302,475,000 will be raised from property taxes.  The remaining $178.525 million comes from federal and state funds, shared services agreements, and fees.

Freeholder Gary Rich noted that the county has reduced its workforce by 15% since 2008.

While the freeholders introduced a budget that reduces spending and keeps the tax levy flat, they also passed a resolution that allows them to increase the tax levy by 3.5%.

The county budget is tentatively scheduled for adoption at 7 p.m. March 28, following a public hearing. The freeholders will make a PowerPoint presentation on the budget March 5 at the Monmouth County Eastern Branch Library, Route 35, Shrewsbury and at 7 p.m. March 19 at the Monmouth County Library Headquarters on Symmes Drive, Manalapan. The public is invited to attend and offer comments.

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CASAGRANDE-MUÑOZ-SIMON-O’SCANLON: STOP PAYING PUBLIC EMPLOYEES FOR UNUSED SICK TIME

ASSEMBLY REPUBLICANS AGREE WITH GOVERNOR’S CALL  TO

END BIG PAYOUTS FROM PROPERTY TAXPAYERS TO RETIRING  PUBLIC EMPLOYEES

Assembly Republicans Caroline Casagrande, Nancy Muñoz, Donna Simon and  Declan O’Scanlon, who sponsor legislation to end the practice of  paying public employees for unused sick time, were pleased that Governor  Christie remains committed to providing this vital property tax relief that has  been blocked by some Trenton politicians.

            “We have capped property taxes and saved billions by reforming public  employee benefits. It’s time to finish the job and save property taxpayers from  giving big checks to retiring public employees,” Assemblywoman Caroline  Casagrande, R-Monmouth, said. “Anyone who is serious about winning the war  against sky-high property taxes should embrace this common sense  reform.”

            Governor Christie repeated his call for sick pay reform during  yesterday’s budget address as part of the items needed to further improve  New Jersey’s  fiscal health.

            “The historic bipartisan reforms we supported resulted in the slowest  growth of property taxes in 24 years, after a decade of crushing increases,”  Assemblywoman Nancy F. Muñoz, R-Union,  Somerset and  Morris, said. “We can do even better for property taxpayers by enacting a  sensible law that requires the use of sick days for what they  were intended.”

            Assembly Bill 2495, sponsored by 23 Assembly Republicans,  would prohibit payments to public employees for unused sick leave. The  legislation would also prohibit sick leave for those who have been indicted and  require medical documentation for absences of six or more consecutive  days.

            “Bringing governments’ workplace policies in line with those in the  private sector should be a no-brainer,” Assemblywoman Donna Simon, R-Hunterdon,  Somerset, Mercer  and Middlesex, said. “In the public sector, the taxpayer is the boss and we can  improve the bottom line for both property taxpayers and our state’s finances  with this logical reform.”

            A few recent examples have highlighted how much money unused sick time  costs property taxpayers:

• $2.2   million to 15 retiring Atlantic City employees this   month
• $306,000amount former West New York mayoral aide claims she’s   owed
• $150,000 to Hackensack Police   Chief

“Governor Christie has proposed a budget with the highest  level of school aid and largest debt payment in state history, while we have  achieved the smallest property tax growth in state history,” Assembly Republican  Budget Officer Declan O’Scanlon, R-Monmouth, said. “Governments throughout  New Jersey  could deliver even more for taxpayers if Democrats in the Legislature agreed to  work with us to eliminate these grotesque payments that have no practical  purpose other than personal profit.”

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CASAGRANDE/O’SCANLON BILL TO SAVE TAXPAYERS MONEY THROUGH REVOLUTIONARY PROPERTY ASSESSMENT PROCESS SIGNED INTO LAW

MONMOUTH COUNTY EXPECTED TO LEAD STATE IN PILOT PROGRAM TO IMPROVE PROPERTY TAX ASSESSMENTS

Bipartisan legislation sponsored by Assembly Republicans Caroline Casagrande and Declan O’Scanlon to save property taxpayers money by sharing property assessment resources countywide has been signed into law today by Governor Christie.

            The legislation establishes a pilot program for counties to implement a standard software program for local tax assessors to use, which would streamline the process and give officials a more accurate tax rate while reducing costly appeals for property taxpayers. Casagrande and O’Scanlon represent Monmouth County, which is expected to be among the first counties to participate in the demonstration project.

            “When every town in the county has to assess property, there is no need to reinvent the wheel several times, especially when the current process is often confusing and inaccurate for taxpayers,” Casagrande, R-Monmouth, said. “Having everyone on the same page and adjusting a few deadlines are cost-free common sense solutions that will save property taxpayers money in the long run through efficiencies and a more accurate property tax system. Municipal budgets will be based on real dollars, not guesstimates that don’t always hold up.

            “Monmouth County is eager to demonstrate to New Jersey that working together will save property taxpayers money and thanks to Governor Christie, our county will get that opportunity,” Casagrande added.

            The law, S-1213/A-1591, will allow a standardized process for assessments that would be used by every town in the county for all future revaluations and reassessments. The four-year pilot will be limited to four counties.

            “This will be a revolutionary way to essentially fix our current, expensive, flawed assessment system,” O’Scanlon, R-Monmouth, said. “It will rework the entire process so that towns are no longer burdened with uncertainty as to the value of their tax base, facilitate remedying unfair and outdated assessments, and will obviate the need for expensive town-wide reassessments and the dramatic valuation shifts that go along with them.

“This pilot program will very likely pave the way to the future for our assessment systems throughout the state,” O’Scanlon added.

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Deadline to appeal property tax assessment due to hurricane damage is tomorrow, January 9

Monmouth County property owners have until tomorrow, January 9, 2013 to notify the Monmouth County Board of Taxation of “material damage” caused by Superstorm Sandy and to receive a reduction in their property tax assessment for 2013.

The Tax Board has been surveying properties in heavily damaged areas and already reduced assessments without owners’ notification.  I checked on a properties in Highlands and Keansburg this morning.   The assessment on the Highlands property had been reduced by 30% and the Keansburg property by 15%.

If your property was materially damaged by Sandy, call the Tax Board at 732-431-7401 or submit your property information here online.

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There’s no such thing as a free beach

Sweeney wants to pay for beach safety and maintenance by getting rid of cops and dpw workers

Photo credit: www.SignsByTheSea.com

MMM has called Senate President Steve Sweeney (D-Gloucester) three times since he jumped on board with the Senator Mike Doherty (R-Warren) in sponsoring legislation that would ban shoreline municipalites from selling beach badges or imposing other user fees to pay for lifeguards, beach cleanup and policing, if those towns accept federal and state money to rebuild from the destruction of Hurricane Sandy.  He hasn’t called back.  Steve Sweeney is a kitten.  Kitten, kitten, kitten!

Given that he won’t talk to us, we’ll have to judge Sweeney’s crusade for free sand in his ass by what others report he says.  The Senate President invited himself to a meeting with the Asbury Park Press Editorial Board earlier this week to make his case for free beaches.

“You don’t charge me to breathe air, why are you charging me to sit on a beach?”

We should be grateful that the top elected Democrat in New Jersey hasn’t figured out how to tax breathing (yet).  But really now, our Senate President thinks breathing air (as opposed to grapefruit juice?) is analogous to sitting on a beach?  That is something we should be concerned about, especially since this guy is considering a run for governor.

Sweeney told the APP that Belmar and the other shore communities that impose beach user fees should cover those costs by consolidating police forces and departments of public works.  He said he would “beat up mayors down the shore” to make it happen “because its not acceptable, you know, to charge beach fees.”

Belmar Mayor Matt Doherty took Sweeney’s first beating:

“I asked (Doherty), how many people live year-round in his town,” Sweeney said. “He’s got a one-square mile town, he’s got 5,800 people. Now, could we run a shared police department? I met his public works director today, could we run a shared public works office?”

“You guys know how I feel about shared services,” Sweeney told the APP.  We don’t know if the APP knows how he feels, but MMM thinks Sweeney is thwarting shared services and other methods that municipalities could use to reduce the size and cost of local government.   If Sweeney was serious about property tax reduction and more efficient local government he would have passed Governor Christie’s property tax tool kit.

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