Soon the New Jersey Legislature will return for its biennial “Lame Duck” session. When last we left our heroes, they had just completed “The Quest for a Balanced Budget,” during which we were forced to abandon all hope for timely progress towards property tax reform, yet again. What we can expect in the last few weeks of the Second Annual Session of New Jersey’s 211th Legislature and of the tenure of our latest Acting Governor is anybody’s guess. Here’s a few of ours.

Reauthorization of the Transportation Trust Fund needs to be among our highest priorities for legislative action this year. If the Transportation Trust Fund fails to generate capital, the Local Aid Program will not distribute any funding. Local governments will be forced to either abandon projects or pay for infrastructure improvements by other means, including cuts in services or increased property taxes.

Another critical area is soaring healthcare costs, which have placed an extraordinary strain on local property taxpayers. Healthcare spending is the fastest growing budget item for municipal and county government. The inflexible structure of the State Health Benefits Program prevents local governments implementing cost containment measures.

As of this writing, the State Health Benefits Commission is considering proposed changes that would provide rate relief to local employers similar to that enjoyed by the state. One suggested change would eliminate multiple SHBP coverage (an employee could only be covered as an employee or a dependent but not both). Another change would permit local governmental units the same ability as the state to negotiate employee premium obligations with the unions. These changes, along with increases in prescription drug co-pay are estimated to save $30 million for local employers in FY06.

Thanks in large part to outreach by local officials, A-3335, which proposes a change in the "Business Retention Act," was held by the Assembly Appropriations Committee. The bill would grant a tax exemption to certain items, traditionally taxed as real property. We need to make certain that the Legislature does not act on legislation that would inevitably increase residential property taxes.

EXECUTIVE DIRECTOR'S MESSAGE FROM 407 WEST STATE STREET   Lame Duck In Season Soon the New Jersey Legislature will return for its biennial “Lame Duck” session. When last we left our heroes, they had just completed “The Quest for a Balanced Budget,” during which we were forced to abandon all hope for timely progress towards property tax reform, yet again. What we can expect in the last few weeks of the Second Annual Session of New Jersey’s 211th Legislature and of the tenure of our latest Acting Governor is anybody’s guess. Here’s a few of ours. Reauthorization of the Transportation Trust Fund needs to be among our highest priorities for legislative action this year. If the Transportation Trust Fund fails to generate capital, the Local Aid Program will not distribute any funding. Local governments will be forced to either abandon projects or pay for infrastructure improvements by other means, including cuts in services or increased property taxes. Another critical area is soaring healthcare costs, which have placed an extraordinary strain on local property taxpayers. Healthcare spending is the fastest growing budget item for municipal and county government. The inflexible structure of the State Health Benefits Program prevents local governments implementing cost containment measures. As of this writing, the State Health Benefits Commission is considering proposed changes that would provide rate relief to local employers similar to that enjoyed by the state. One suggested change would eliminate multiple SHBP coverage (an employee could only be covered as an employee or a dependent but not both). Another change would permit local governmental units the same ability as the state to negotiate employee premium obligations with the unions. These changes, along with increases in prescription drug co-pay are estimated to save $30 million for local employers in FY06. Thanks in large part to outreach by local officials, A-3335, which proposes a change in the "Business Retention Act," was held by the Assembly Appropriations Committee. The bill would grant a tax exemption to certain items, traditionally taxed as real property. We need to make certain that the Legislature does not act on legislation that would inevitably increase residential property taxes. Other issues will undoubtedly emerge as this episode of the saga unfolds. Keep your eye’s peeled for “Dear Mayor” letters as they do.           Editorial from New Jersey Municipalities, Volume 82, Number 7, October 2005