Still Hope For Property Tax Cap

The ball is in the Assembly’s court

Both the State Senate and General Assembly passed the bill that would blow a hole in municipal budgets for the next four years, the “extension” of the 2% Interest Arbitration Cap for police and firefighters base salaries that did not really cap those salaries.  Had the bill become law, there would have been a massive cut in municipal services throughout New Jersey or property taxes would have started rising again at levels we experienced during the Corzine/Codey/McGreevey administrations.

But Governor Chris Christie conditionally vetoed the bill and the Senate quickly concurred with the changes he made to the bill which kept the cap intact through December 2017 by a vote of 33-1.   Christie’s office announced the conditional veto and the Senate’s concurrence in the same press release.

One has to wonder why the Senate went through the exercise of passing the “bad bill” in the first place, by a vote of 28-7, only to abandon the changes it made to the existing Interest Arbitration Cap and, for the most part, extend the existing law for another four years, so quickly.   Without the Senate’s concurrence to Christie’s conditional veto, the cap on arbitration awards would expire on April 1st.  Either the “bad bill” or the expiration of the cap would have been a victory for the Trenton Democrats benefactors in the police and firefighters unions.

The unions may still have their victory.  Before the Assembly could take a vote on concurring with Christie’s conditional veto, Speaker Vincent Prieto abruptly adjourned the session.   No Assembly session has been scheduled, yet, to take up the concurrence prior to April 1.

Below is a video of Assemblyman Declan O’Scanlon’s floor speak before the chamber voted on the “bad bill.”   As usual, O’Scanlon makes is case and fights for New Jersey taxpayers very well.

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NJ Senator Mike Doherty Pulls A Pelosi

Sponsors a critical bill before he reads it

Legislature in poised to pass a “cap” that doesn’t control costs

State Senator Mike Doherty

State Senator Mike Doherty (R-Warren) told MMM that he hadn’t read a bill of which is he is a primary sponsor, the day after it cleared the Senate State Government, Wagering, Tourism and Historic Preservation Committee.

We’re not talking about an insignificant bill like designating “I’m from New Jersey” as the State Song, or the establishment of special license plates for honorably discharged veterans, two other bills that Doherty sponsored.

We’re talking about the extension of the 2% cap on arbitration awards for police and firefighters unions, the provision of the 2010 reform legislation that slowed the growth in New Jersey’s property taxes and made the 2% cap on those taxes work.

Doherty joined Senate President Sweeney in sponsoring legislation that exempts contracts that have already been subject to the cap from being subject to it again when they are up for renewal and raises the cap to 3% on contracts that have not yet been subject to renegotiation.

Doherty said, “I don’t see what the big deal is, the original bill had one bite at the apple, this bill extends that.  Is it a perfect bill? No, but this is the way Trenton works. A bill that passes is better than no bill.”

Not really, Senator.  A bill that passes the same as no bill, except it deceives the public into thinking the legislature is continuing fiscal reforms when they are actually engineering massive chaos in municipal governments.

Doherty said he hadn’t read the bill when we questioned him on specifics.  He said he was relying on analysis of the bill from Republican legislative staffers and referred questions to Republican Senators Steven Oroho and Sam Thompson, members of the committee that unanimously cleared the bill.

The leadership of the police and firefighters unions not only read the bill, they helped write it, according to what they are telling their members.

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Property taxes: Christie won’t sign Democrat bill to extend key law, Republican lawmaker says

Property taxes: Christie won’t sign Democrat bill to extend key law, Republican lawmaker says (via NJ.com)

TRENTON — A fight over renewing a law crucial to holding back an increase in property taxes is nowhere near resolved, a Republican lawmaker who has led the fight for retaining it said today. Although the Democrat-led Legislature last week began advancing…

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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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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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State Aid to New Jersey Municipalities Frozen for Third Consecutive Year

State Aid to New Jersey Municipalities Frozen for Third Consecutive Year (via NJSpotlight)

New Jersey municipalities would see no increase in state aid for the third year in a row under the $34.4 billion budget proposed last week by Gov. Chris Christie. While the $1.5 billion being distributed is better than the aid cuts municipalities had…

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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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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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