Dear Mayor:

Today in Trenton, Assembly Speaker Joe Roberts and Senate President Richard J. Codey promised legislative action on property tax reform by the end of this year. At a Press Conference in the State House, the Legislative Leaders unveiled a plan they have jointly developed, in consultation with Governor Corzine.

The process by which the reforms will be enacted builds on Speaker Roberts “CORE” plan. (See our “Dear Mayor” letter of May 10.) It will begin with the Governor addressing a joint session of the Legislature during July. In his speech, Governor Corzine will “frame out the goals and expectations” of the special session. The speech will be followed by Senate and Assembly action on joint resolutions, which would create four joint committees.

A Joint Committee on School Funding would seek to reform the current funding formula “to mitigate disparities and inequalities between urban and suburban/rural schools.” A Joint Committee on Benefits Reform would act on “proposals to end abuses of the public benefit system and control benefit costs statewide. A Joint Committee on Government Consolidation and Shared Services would draft “measures to promote service sharing at all levels of government and examine potential consolidation of certain state government functions.” And A Joint Committee on a Citizens’ Convention and Constitutional Reform would lay “the groundwork for a Citizens’ Convention that would be put to the voters on the November 2007 ballot.”

Each of the Joint Committees would include three State Senators (2 Democrats and 1 Republican) and three Members of the General Assembly (2 Democrats and 1 Republican).

The deadline for completion of joint committee action is September 30. The proposals would then go to each House’s regular standing committees, with the deadline for final legislative action being December 31, 2006.

From our perspective, legislative action on a Citizens’ Convention initiative is the key to the entire process. Only a vote on authorizing a Citizens’ Convention in November, 2007 will give the people who pay the taxes the opportunity to judge the sufficiency of whatever other reforms the Legislature may pass before January 1. Absent such an opportunity, the people could be forced to accept piecemeal relief efforts, instead of substantial and sustainable reform.

If the Legislature succeeds in enacting real reform, then a convention may not be necessary. But that decision must be left to the people of New Jersey, by giving them the opportunity to empower and empanel a Citizens’ Convention at the November 2007 General Election. And, if the people still see the need for such a Convention, that body must be given the authority to recommend both statutory and constitutional remedies to the property tax crisis.