Dear Mayor:

"The budget crisis is over. Now the real work of producing fundamental, sustainable property tax reform must begin," stated Executive Board Member, Mayor Gary Passanante of Somerdale, Co-Chair of our Property Tax Reform Committee and Chairman of the Citizens Convention Coalition, at a press briefing in Trenton on Wednesday.

The Citizens Convention Coalition (CCC) consists of 13 member organizations which have banded together as a strong and determined advocate for the reform of New Jersey's oppressive and unfair property tax system.

"We support the objectives of the four legislative task forces set up in late May by Senate President Codey and Speaker Roberts to work during the summer on the property tax issue," Passanante said. "But we also believe that a convention is the ultimate solution.

"Given the failure of the Legislature to deliver true property tax reform and after viewing legislative deadlock on fiscal matters in the last three weeks, we are convinced more than ever that a back-up plan - - the convention - - must be in place. Accordingly, we call on the Legislature when it convenes later this month to pass the convention enabling legislation so that this question is on the November ballot. Such action will be a positive step in giving the people of New Jersey genuine hope for property tax reform. And it is totally consistent with the stance taken by Governor Corzine," Passanante observed. According to CCC, the convention legislation might have to allow the convention to be deferred until the spring of 2008 because of time and procedural constraints.

It is noted that Speaker Roberts' proposed dedication of one-half cent of the sales tax increase is also expected to be on the November ballot. Speaker Roberts has also indicated his willingness to advance the Convention Question to the voters this November.

The League and the other members of CCC, many of whom served on Governor Corzine's Property Tax Transition Team, acceded to the Governor's position that the property tax reform issue wait until the budget deficit was resolved. This delay has resulted in a very narrow window of opportunity for the Legislature to act. Had the budget been resolved a month earlier, the CCC's "Road-Map" for tax reform would have allowed sufficient time for producing a viable reform agenda in 2006.

Please contact your Legislators and urge them to advance the Convention Question to the voters, when they return to Trenton for their special session later this month.

Dear:
Congratulations on the adoption of the State’s FY 2007 Appropriations Act. And thank you for keeping the crying need for property tax relief and reform in focus.

Now the hard work begins.

Please know that we stand ready to assist you in making progress in our State’s continuing battle against our over-reliance on excessive, regressive property taxes. Through the League, you can give mayors and local elected officials from all around New Jersey the opportunity to have a part in this historic initiative. We, respectfully, suggest that those mayors and local elected officials deserve to be involved and that their involvement will lead to better results.

For too long, local officials have been asked to do too much with too little. For too long, State officials have decided to balance their own budgets in ways that have dangerously unbalanced the budgets of low and moderate income property taxpayers. And for too long, New Jersey policy makers have ignored the need for meaningful and consistent property tax relief, the need for significant and sustainable property tax reform, and the plain language of state statute requiring inflationary adjustments to key municipal tax relief programs.

Throughout the stalemate, we heard a lot about constitutional and statutory requirements. But for the past five years, no one has spoken about satisfying the requirements of those State statutes that were meant to keep the property tax crisis from getting any worse.

For the fifth straight year, the State’s Appropriations Act under-funds key municipal property tax relief programs (CMPTRA and Energy Taxes). State statutes require annual inflationary adjustments in those programs.

We understand the State's fiscal problems and did not ask the Legislature to honor its statutory commitment to full municipal property tax relief funding. Still, it is important to remember that, with the passage of this budget, our local property taxpayers will have been denied $283.7 million of relief, over the past five years. That includes $135.6 million in this budget, which will go to fund other State priorities - priorities other than property tax relief. This amounts to a significant 'reverse State aid' program.
We continue to support the Citizens' Property Tax Reform Convention bills (A-1858/S-756 and ACR-107/SCR-68). These initiatives must pass before early to mid August, in order for the people to be able to vote on them this coming November.

These bills have been in the public arena for over four years where they have been subject to intense review, scrutiny, debate, dissection, and refinement. Further, they incorporate the basic recommendations of the Property Tax Convention Task Force whose distinguished members engaged in extensive deliberations during the final three months of 2004. And, they have been endorsed by Governor Corzine's Property Tax Reform Transition Policy Group. Based on this record, we are convinced that this legislation provides the best road map to achieve meaningful property tax reform for New Jersey at the earliest possible date.

Passage of the convention bills prior to a special legislative session would, we believe, increase the likelihood of real reforms coming out of the session. Further, it would allow the people of New Jersey to judge the results of a special session. And finally, it would assure the people of New Jersey of the shortest escape route from the property tax crisis, should the special session fail to produce real reforms.
Please feel free to contact me, so that we can discuss the best way to involve the League and our members in your efforts.
                                                                        Very truly yours,