Tuesday, 27, 2006
Trenton, NJ

STATE BUDGET DEADLOCK THREATENS TAX RELIEF

Though press reports indicate otherwise, we cannot believe that budget makers in Trenton would seriously consider even deeper cuts in municipal property tax relief funding in the FY ’07 Budget.

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.

Yet the State Treasurer has apparently circulated a memo to Cabinet officials, directing them to devise a plan for a new $300 million cut in municipal aid and a new $500 million cut in school aid. These cuts would be considered if the Legislature passed a budget that lacked what the Treasurer described, to the press, as believable revenue sources.

We have urged all New Jersey Mayors to contact their Legislators, the Legislative Leadership, the Governor’s Office, the Treasurer’s office and DCA Commissioner Susan Bass Levin’s office, urging them all to reject any suggestions for further cuts in programs that were expressly designed to help local officials keep some sort of a tether on run away property tax bills.

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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.