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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
FROM
407 WEST
STATE STREET..... |
 |
| 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.

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