Dear Mayor:

Earlier today, the Assembly and Senate State Government Committees held the constitutionally required public hearing on ACR-1/SCR-1, which would ask the voters to amend the State Constitution to annually dedicate one-half of the increase in sales tax revenue, for property tax reform.

The League was represented by Mayor Gary Passanante of Somerdale, who also serves as a member of our Executive Board and the Co-Chair of the League's Property Tax Reform Committee.

Mayor Passanante expressed our support for the proposal and told the Committee Members, "The budget crisis is over. Now the real work of producing fundamental, sustainable property tax reform must begin. New Jersey is still overly dependent on regressive, excessive property taxes. The crisis continues for New Jersey families and small businesses.

"No matter how much you think government should spend; no matter where you think money is needed or money is wasted; no matter what the appropriate level of revenue we need to meet our responsibilities to the people who elected us, the simple fact of the matter is that there has to be a fairer way of raising it. THAT is the crying need of the property taxpayers of our State."

Mayor Passanante also said, "This summer, the Legislature needs to make real progress towards real and sustainable property tax reform. It needs to let the people decide if they would like to have a Citizens Convention for Property Tax Reform, should the Legislature's special session fall short of that goal."

Several Legislators indicated their belief that local spending decisions are the source of the property tax crisis. For them, it seems, reform will only be accomplished if New Jersey sacrifices its preference for local self-government and compromises its commitment to Home Rule.

Mayor Passanante asserted that regionalization and service sharing present excellent opportunities for local savings. That is why so many municipalities are already involved in so many such arrangements. Another good, hard look at how the State can remove impediments to, and encourage greater use of, such relationships can help. He then reminded the Committee Members of the impact of State mandates, which are often opposed by the League and always beyond the control of local officials, on local property taxes.

We expect both Houses to vote on the dedication proposals tomorrow. If approved by three-fifths majorities in both Houses, the Question will appear on the ballot, this November.

For more information, contact Jon Moran at 609-695-3481, ext. 21.