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Property tax reform is the subject by which all of
Trenton is occupied. The Governor and the Legislature
have been working since the summer on a package of
bills to overhaul what is, by every measurement, the
worst property tax system in the entire United
States.
New Jerseyans pay an average $6,000 per year on
property taxes, an amount that eclipses the national
average. And for residents in many parts of the
state, $6,000 would be a comparative bargain.
Of course, this isn’t the first time that New Jersey’s
political leaders have tried to tackle the problem.
Governors and legislatures have attempted for years to
offset property taxes with various instruments, such
as rebates, or coax local governments to share
services. Unfortunately, none of those efforts had a
lasting impact.
After several decades of half-measures and temporary
fixes, the problem has reached a critical stage. In
fact, according to the US Census Bureau New Jersey has
lost nearly 200,000 middle income households since
2000. Almost everyone agrees that property taxes are
at the core of the problem. Businesses are leaving as
well, searching mostly for places in which taxes are
lower. The result of all of this will no doubt be an
economic and social disaster for the state. As
experts have warned, New Jersey can’t sustain its
economy with a vanishing middle class and a shrinking
private sector.
Last week the New Jersey Association of Counties,
which represents all 21 county governments in New
Jersey, held its annual reorganization. I was honored
to have been named president this year. And on behalf
of the organization I delivered to the Governor and
the leaders of the Legislature this message:
The Day of Reckoning is here. The property tax system
must be reformed or New Jersey will reach a point from
which it may not be able to recover.
To their great credit, the Governor and the leaders of
the Legislature seem to understand this. They have
made property reform their most urgent priority. And
for their efforts they have come under withering
attack from the interest groups that have a stake in
the status quo.
Now, the New Jersey Association of Counties, which
represents the state’s 21 county governments, is an
interest group. And we have serious reservations
about some of the elements of the plan being
developed. However, we’re not going to pile on. The
situation is too grave.
Instead, we are committed to helping, even on parts of
the plan that concern us.
For example, part of the Governor’s plan calls for a
four-percent limit on future property tax increases.
With health insurance and energy costs rising by
double-digit percentages, and with a host of expanded
responsibilities, remaining under that cap may be
difficult for counties. But, as I pledged to the
Governor and the legislative leaders, if they would be
willing to conduct a top-to-bottom analysis of state
mandates, and provide incentives for shared services,
I would ask our members to reconsider their opposition
to the cap.
The fact is that state mandates impose on counties,
municipalities and school districts millions of
dollars in expenses. And they rarely come with the
funding to pay for them. The Legislature has made it
something of a hobby to dream up new responsibilities
for local and county governments and then impose them
without financing. That’s unfair, and it’s a big
contributor to our property tax problem. If the state
wants to impose a cap, then it should abolish the
mandates that aren’t critical and provide funding for
the rest.
On shared services, county governments are already
leading the way. If fact, we have been for years and
they are saving millions. County governments
throughout New Jersey are sharing medical examiner
offices; health departments; juvenile detention
facilities; workforce investment boards and
procurement services for everything from salt to
paper.
They are sharing employee education and training
programs; emergency services; drug and alcohol tests
for workers; roadway improvements; public works
facilities and land use planning. In my county of
Cumberland I have proposed to open up the County Court
House to the municipalities so that they don’t have to
build or expand their own facilities.
As much as we’ve done, we can do more. My first
initiative as president of NJAC was to establish a
special committee of county officials – all in to
succeed me as president – to focus on shared services
for the next few years. We’ll create a database of
best practices for the counties to share and propose
new ways to work with our municipal counterparts to
cut costs. For the state’s part, it should develop a
way to provide additional aid to counties that take
share services with each other or with towns in order
to control property taxes.
Whatever the solutions, New Jersey’s county
governments are committed to finally reforming the
property tax system – this year – and we believe that
as the only truly regional form of government, we can
play a much larger and cost effective role in
delivering local services. |
