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April 2, 2008

State Budget Cuts
Speaker Calls for New Formula



Dear Mayor:

Citing the unfairness and inequity of population based municipal property tax relief funding cuts, in a Press Release issued earlier today (available at our website) Assembly Speaker Joe Roberts has called for the distribution of funding to be based on ‘efficiency performance measures.’ To date, those measures do not exist.

The Speaker’s proposal recognizes that there are major problems with:

            The magnitude of the proposed municipal property tax relief funding cuts;
            The timing of the municipal property tax relief funding cuts; and
            The arbitrary population ‘formula’ used to apportion those cuts.

We agree with the need for greater fairness and equity. And the speaker’s proposal looks to address the unfairness and inequity of the ‘formula.’ We have numerous concerns, however, that the desired ‘efficiency performance measures’ can be computed in time to allow municipalities to rationally plan and budget this year. So the timing issue continues to plague municipal budget makers.

We welcome the opportunity to work with the Speaker and with DCA on the fairest way to deal with municipal property tax relief funding in future years. But for this year, we must continue to urge the legislature to fully restore the Governor’s proposed cuts to municipal property tax relief funding.

Your efforts on this are having impact in Trenton. We will keep you posted on any and all future developments. If you have any questions, contact Jon Moran at 609-695-3481, ext. 121.


                                                                        Very truly yours,


                                                                        William G. Dressel, Jr.
                                                                        Executive Director





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