Thursday, June 8, 2006

Trenton, NJ

LEAGUE WELCOMES PROGRESS ON
PROPERTY TAX RELIEF AND REFORM

For the fifth straight year, it appears that the New Jersey Legislature will adopt an Appropriations Act that will under-fund key municipal property tax relief programs (CMPTRA and Energy Taxes). State statutes require annual inflationary adjustments in those programs. (Instead of distributing $835.4 million in CMPTRA, the distribution should be about $927 million. And instead of $788.5 million from the Energy Tax, the distribution should be about $833 million.)

But earlier this week, we finally heard some good news for our beleaguered property taxpayers.

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

The process by which the reforms will be enacted will begin with the Governor addressing a special joint session of the Legislature during July. The speech will be followed by Senate and Assembly action on joint resolutions, which will create four joint committees - a Joint Committee on School Funding; a Joint Committee on Benefits Reform; a Joint Committee on Government Consolidation and Shared Services; and a Joint Committee on a Citizens' Convention and Constitutional Reform, which would lay "the groundwork for a Citizens' Convention that would be put to the voters on the November 2007 ballot."

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," said Bill Dressel, the League's Executive Director, "legislative action on a Citizens' Convention initiative is the key to the entire process. Only a vote on authorizing a Citizens' Convention 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.

"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.

"If the Legislature enacts meaningful and sustainable reforms, then there will be no need for a special convention. If it does not, then there must be one."

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For more information, please contact Mr. Bill Dressel, Executive Director at 609-695-3481, ext. 22 or by cell at 609-915-9072 or at bdressel@njslom.com.