New Trenton panel could be step toward tax reform
Raise your hand if you think property taxes in New Jersey are too high. I’m typing with one hand since my other hand is in the air, as I know you strike a similar pose while reading this.
If you’ve spoken with me or read statements I’ve made in my 11 years as your mayor, you know I’ve been vocal on this topic and I want to provide answers when questions are posed. That has been frustrating since there’s only so much we can do on the local level to address this broader issue. I don’t seek to deflect responsibility in saying that; it’s just a fact that local municipalities only control about 15 percent of your property tax dollars.
Everyone knows that the needed reforms must occur at the state level, but governors and legislators have kicked that can down the road for decades to avoid making the hard decisions.
So why do I broach this “third rail” topic with you again today? I do so because there is activity in Trenton that appears to be a serious step to finally act. And I want to keep you informed.
As the new legislature convened this past January, a bi-partisan group was formed to conduct a detailed study unlike any in the past. The New Jersey Economic and Fiscal Policy Workgroup included legislative leaders from both parties, Rutgers, Monmouth and Rowan University policy experts, as well as business and industry leaders from throughout the state. Their task: To identify ways to address soaring pension and benefit costs, hold down property taxes, make state and local governments and school districts more efficient and leverage the value of state assets. This would be an evaluation of the entire government structure, not just how our tax dollars are currently spent. After their initial organizational meeting in late January, they spent several months and multiple meetings reviewing these critical issues and potential solutions. Each member was required to submit recommendations as a result of these interactions. Then they split into five subcommittees related to the topics previously mentioned to evaluate those recommendations and ultimately each subcommittee submitted a final report with a consensus of the assembled experts.
On Aug. 10, the New Jersey Economic and Fiscal Policy Workgroup issued its final report. You can view it on a new website at www.pathtoprogressnj.org. It is seen as a first step in what will be an ongoing process in the coming months that will involve local elected officials and the general public in a discussion to put New Jersey on a path to progress. I encourage you to read this report. It proposes significant reforms with timelines that start with the 2019 budget.
We all agree that change is needed. That serious discussion is about to happen.
