Today, the General Assembly approved S-29, which would implement a tax levy cap from 4% to 2%. The Governor will sign the bill shortly.
League Executive Director Bill Dressel issued the following statement:
“Caps do not address the real cost drivers confronted by local leaders. A hard 2.0 cap is, as the Governor said ‘unworkable,’ without the toolkit. No one can declare the cap a victory for reform, until the toolkit reforms are passed. Now that the proverbial cart has been placed before the horse, the Legislature and Administration must immediately prioritize and pass the toolkit reforms.
For years local leaders have called for reform, including binding arbitration reform, COAH reform, health benefits reform, mandates relief, civil service reform, revenue replacement funding compliance, flexibility to deal with pension costs, utility costs, disaster and emergency response costs and other costs imposed by factors beyond the control of local leaders, and conformity of any new local caps to a new State spending cap.
“The League of Municipalities can support a property tax levy cap, if and only if it is moved as the final piece, not the centerpiece of reform.
“True tax reform is not yet done.”