407 West State Street, Trenton, NJ 08618  (609)695-3481  New Jersey League of Municipalities logo 
William G. Dressel Jr, Executive Director - Michael J. Darcey, CAE, Asst Executive Director
FROM 407 WEST
STATE STREET.....
Executive Director Bill Dressel
State Budget Ups and Downs

Last month, Governor McGreevey introduced his FY 2004 State Budget. Over the coming months, the Legislature will listen to testimony from independent economists, its own fiscal analysts, the State Treasurer, Cabinet Members, interest groups, the general public and League President, Mayor Chris Bollwage of Elizabeth. Finally, the fiscal plan will be approved by both Houses and signed by the Governor, shortly before the midnight, June 30 deadline.

The process will have ups and downs. But then, so do local budgets.

Local employee pension costs are up, as are employee health benefit rates. We can expect energy costs to be up after August 1, when state mandated rate caps expire. Salaries and wages for local public employees will also be up, as we struggle to attract and retain the best and the brightest to serve our fellow citizens. Fuel costs will be sensitive to developments in the Middle East and in Venezuela. And the costs for every grain of salt we spread on icy roadways, every vaccine we give to our children and our elderly, every watt of electricity we send up the poles to light our roads and recreation fields and every sheet of paper we print to inform our citizens of the actions of their government - these too will rise above last year's levels.

It seems that other things are up as well - like voter disgust with our state's property tax system. Late last year, Quinnipiac University asked New Jerseyans to name their most hated tax. A whopping 54 percent cited the property tax. Futhermore, although 61 percent would rather see services cut than see state taxes rise; 74 percent would rather see an increase in state sales or income taxes, than face another property tax hike. The Star Ledger of Newark developed a "tax trauma index" to measure the relative burden shouldered by property taxpayers throughout the state. Bottom line - property tax trauma is up in New Jersey.

It seems the only thing NOT going up is the state's commitment to municipal property tax relief. Yet, if this crucial state funding stays level, property taxes WILL rise.

So what's down? Why, the Cap rate, of course. Fitting all our cost increases under a 1 percent budget Cap will force municipalities to forego needed spending in other areas vital to our citizens. We face unprecedented demands on the public safety front as we struggle to provide Hometown Security while continuing to fight common street crime. We need to make investments in our local environmental and transportation infrastructures to guarantee our citizens' health and economic opportunity. And we need to make technological investments to make local government more efficient and more accessible to our residents.

State policy makers need to step up to the plate. They should not let our fellow citizens down.


NJLM - From 407 West State Street - February 2003
407 West State Street, Trenton, NJ 08618  (609)695-3481  New Jersey League of Municipalities logo 
William G. Dressel Jr, Executive Director - Michael J. Darcey, CAE, Asst Executive Director
FROM 407 WEST
STATE STREET.....
Executive Director Bill Dressel
State Budget Ups and Downs

Last month, Governor McGreevey introduced his FY 2004 State Budget. Over the coming months, the Legislature will listen to testimony from independent economists, its own fiscal analysts, the State Treasurer, Cabinet Members, interest groups, the general public and League President, Mayor Chris Bollwage of Elizabeth. Finally, the fiscal plan will be approved by both Houses and signed by the Governor, shortly before the midnight, June 30 deadline.

The process will have ups and downs. But then, so do local budgets.

Local employee pension costs are up, as are employee health benefit rates. We can expect energy costs to be up after August 1, when state mandated rate caps expire. Salaries and wages for local public employees will also be up, as we struggle to attract and retain the best and the brightest to serve our fellow citizens. Fuel costs will be sensitive to developments in the Middle East and in Venezuela. And the costs for every grain of salt we spread on icy roadways, every vaccine we give to our children and our elderly, every watt of electricity we send up the poles to light our roads and recreation fields and every sheet of paper we print to inform our citizens of the actions of their government - these too will rise above last year's levels.

It seems that other things are up as well - like voter disgust with our state's property tax system. Late last year, Quinnipiac University asked New Jerseyans to name their most hated tax. A whopping 54 percent cited the property tax. Futhermore, although 61 percent would rather see services cut than see state taxes rise; 74 percent would rather see an increase in state sales or income taxes, than face another property tax hike. The Star Ledger of Newark developed a "tax trauma index" to measure the relative burden shouldered by property taxpayers throughout the state. Bottom line - property tax trauma is up in New Jersey.

It seems the only thing NOT going up is the state's commitment to municipal property tax relief. Yet, if this crucial state funding stays level, property taxes WILL rise.

So what's down? Why, the Cap rate, of course. Fitting all our cost increases under a 1 percent budget Cap will force municipalities to forego needed spending in other areas vital to our citizens. We face unprecedented demands on the public safety front as we struggle to provide Hometown Security while continuing to fight common street crime. We need to make investments in our local environmental and transportation infrastructures to guarantee our citizens' health and economic opportunity. And we need to make technological investments to make local government more efficient and more accessible to our residents.

State policy makers need to step up to the plate. They should not let our fellow citizens down.


Bill Dressel Signature


 

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