LEAGUE URGES LEGISLATURE TO KNOCK DOWN BARRICADES TO COOPERATION

From the first mention of a special session, the League of Municipalities clearly indicated that we had much more faith in another process – a citizens’ convention for property tax reform. But hope, as well as faith, is considered a great virtue. And we sincerely hope that this special session, with its four joint committees, will be successful in fixing New Jersey’s massive and chronic property tax crisis. We have committed our resources and energies toward that end and we will continue to do so. We honestly want to help this special session find a way to fix the problem.

We have never suggested that there is a simple, exclusively ‘revenue side,’ fix to the crisis. Accordingly, local officials, through the League of Municipalities, have never ignored the ‘spending side’ of the problem. Since on average 70% of the cost of government is personnel and personnel related cost, we have already presented testimony and a detailed study that sought to focus attention on the large and rapidly growing impact of public employee salaries, pensions and benefits on local property taxes. And, while we, along with a host of expert witnesses, have advised legislators that consolidations and service sharings have had and will continue to have a limited impact on New Jersey’s property tax crisis, we have offered legislators suggestions on how the process can be streamlined and encouraged. Anything that might contribute to a solution needs to be explored.

Regionalization and service sharing present excellent opportunities for some local savings. That is why so many municipalities have been involved for so long 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.

At this juncture, and with a few minor modifications, we can support A-51. This bill, sponsored by Assembly Speaker Joe Roberts as part of his CORE reform package, will provide a simple and uniform procedure that can be used by any local unit of government to enter into a shared service agreement or contract for a joint meeting with any other local unit.  The bill also provides municipalities with a streamlined consolidation procedure intended to make municipal mergers a more attractive option.  The bill specifically grants municipalities the power to hold a binding referendum on the creation of a commission of municipal officials and municipal residents in order to identify and implement opportunities for shared services, joint meetings, or consolidation for the municipality.  This referendum and citizen’s commission is intended to provide a clear mandate for the municipality to move forward into the joint provision of services intended to reduce costs and lower property taxes. Finally, the bill repeals a substantial number of laws that allowed for specific joint services which would more easily be accomplished through the uniform procedures set forth in this bill.

We thank Speaker Roberts for agreeing to incorporate many of our suggestions into the original bill and the amendments to the bill. From the outset, our primary goal on service sharing and consolidation has been to protect the rights of local voters to determine their own political destiny, while giving them the tools they need to contribute towards a solution to the property tax crisis.

Contact:          Bill Dressel, Executive Director
                        (609) 695-3481 x22; (609) 915-9072