November 25, 2009
League Reacts to Statement Indicating Further Property Tax Relief Funding Cuts
In a New Jersey Building Authority Bond Refunding Proposal made public today, the State of New Jersey revealed that it “intends to make additional reductions in spending consisting of the $400 million departmental operating reductions directed by the Governor on November 5, 2009, and up to $400 million actions affecting major cost centers, including: school aid, municipal aid, higher education, hospitals and the State contribution to the Pension Plans.” (Our emphasis added.)
Local budgets were carefully crafted and balanced assuming that the State would honor its commitment to a certain level of property tax funding. That level has already been reduced twice within the last twelve months – first, in January, when State revenue projections were not met, and second, in July, when the State’s current budget imposed further cuts.
The statement in the Bond Refunding Proposal is the first indication to local budget makers of the State’s intention to again deny our property taxpayers promised relief.
“Cuts in property tax relief funding do not help to speed our State’s economic recovery,” said League Executive Director Bill Dressel. “They do not help homeowners, especially not those already facing unemployment or possible foreclosure. They do not inspire business confidence in New Jersey. And they destroy the careful plans of municipal officials, already struggling mightily to serve their fellow citizens in the midst of this recession.”
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For further information contact: William G. Dressel, Jr., Executive Director at (609)695-3481, extension 122 or 609-915-9072.