Lawmakers offer views on tax woes

Over 200 attend school symposium

By: Dick Brinster
   HIGHTSTOWN — Three state legislators say they agree that partisan politics must be cast aside to solve New Jersey’s property tax dilemma, widely cited as the main reason so many school budgets were rejected this year.
   State Sen. Ellen Karcher, D-Monmouth and Mercer; Assemblywoman Jennifer Beck, R-12th; and Assemblyman Michael Panter, D-12th, say attacking the problem must be a top priority this year in Trenton. And Ms. Karcher said she and other legislators recognize the problems communities must bear because of the formula of property taxes carrying school budgets in New Jersey.
   "The property tax burden has been decades in the making," she said Monday night at Hightstown High School, where more than 200 people attended a symposium held in the wake of the defeat last month of the East Windsor Regional District budget. "There is not going to be an easy, overnight fix."
   Mr. Panter agreed with those who insist that middle-class districts such as East Windsor are forced to carry far too much of the tax load. The most affluent districts throughout the state seldom have trouble passing school budgets but critics says the least affluent or Abbott districts are receiving too much help. Mr. Panter insisted that all political philosophies must be cast aside when considering a badly needed remedy.
   "In some sectors people think you’re a heretic as a Democrat if you mention this," he said. "The Abbott funding system is unfair to East Windsor and Hightstown and the bulk of suburban New Jersey."
   He said 31 the New Jersey’s 601 school districts are getting about half the total state aid under the Abbott relief formula. But Mr. Panter said discontent over the establishment of those districts should not be aimed exclusively at legislators.
   The program was established as a result of a state Supreme Court ruling.
   "But the pendulum has swung too far," he said.
   More consolidation of districts is needed to help stop the bleeding, he said while adding it is unfortunate that he had to point that out in a regional setting where the municipalities already have done their part by regionalizing their school district.
   Mr. Panter, also an investment banker, said the cost of municipal governments and school districts is out of control throughout much of the state.
   "If somebody came to you in a state the size of New Jersey and said they were going to open 600 individual municipalities and 600 school districts and give those school districts stand-alone administrations … with independent legal, purchasing and payroll departments, you wouldn’t give them a $1 investment," he said. "It’s time to not only reward districts like this one that have reached efficiency but time to be starting to withhold aid from those who refuse to consolidate."
   In the wake of the statewide disaster last month, when voters rejected 47 percent of the budgets, Ms. Beck said there are no excuses for anyone in government not to realize there is no time left for rhetoric.
   "There is no more critical issue than school funding," she said.
   Ms. Beck also insisted there is no way to exaggerate the scope of difficulties poor planning has brought to the state’s school-funding formula.
   "This year, the National Tax Foundation ranked New Jersey 49th out of 50 states in competitiveness," she said. "We have had 57,000 residents move out of the state last year because they couldn’t afford to live here any longer."
   Ms. Beck said she understands the tension and rage and doesn’t blame taxpayers for their discontent.
   In her five months in Trenton she said she has sponsored or cosponsored 41 bills dealing with property taxes. However, during her first three months in office, Ms. Beck said, she was not given an opportunity to vote on a single bill to address the problem of property taxes.
   "We voted on postage stamps, we voted on highways, we voted on other bills that were ancillary bills," she said. "But the most critical issue of all, property taxes, was not voted on at all."
   She said her studies indicate that Abbott districts are funded at $17,000 to 19,000 per pupil, and she has introduced a bill to reduce that to $14,000.
   Ms. Beck says her bill would save about $208 million at 2005 calculations. That amount would be redistributed to any non-Abbott district with enrollment growth of 2 percent or more.
   East Windsor, where the per-pupil cost is about $12,000, would be one of those districts.
   Ms. Beck also wants to reallocate funds and eliminate 11 districts from Abbott funding eligibility.
   Virtually all of the audience apparently agreed with her comments, but former Board of Education member and current Hightstown Democratic mayoral candidate Eugene Sarafin called Ms. Beck an idiot and walked out of the hall during one of her answers.
   Art Johnson of East Windsor was among those in the audience who thought the legislators understood their responsibilities.
   "You guys seem on board. Who else to I do call?" he asked.
   It didn’t take Sen. Karcher more than a few seconds to recommend Deputy Minority Leader Wayne Bryant, D-Camden, chairman of the Budget and Appropriations Committee. She called him a "gatekeeper," who as committee chairman controls which spending bills reach the Senate floor.
   "The first time I said call Sen. Bryant, somebody got back to me and said, ‘You threw Sen. Bryant under the bus,’ " Sen. Karcher explained. "And I said, ‘Well, look, he has sort of hijacked public policy here.’ "
   Sen. Karcher said she’s dedicated to moving forward a new school funding formula. She said the current formula, which gave birth to Abbott, has been deemed unconstitutional by the state Supreme court because it failed to take into account what it costs to educate each child across the state.
   John Burns of East Windsor praised the district for preparing his children well and provided some levity with a story about a New Year’s eve conversation with a friend who moved to Whiting because of high taxes in Twin Rivers.
   "Between the tax reduction in Whiting — he and his wife are both over 65 and received maximum rebate for property taxes — in effect, he told me his annual taxes are $1,020, and he received a $1,000 rebate.
   "In short, by the time they left the party at 1:30, I had paid more in taxes that he did for the whole year."
   Then Mr. Burns got serious and reminded the lawmakers that they were elected by the middle class, and said he has sustained a 500-percent increase in property taxes since moving here in 1988.
   "I’ve heard about property tax reduction since I moved into the state 18 years ago," he said. "It’s nice to know that you all agree with us; we voted for you because you all agree, but we voted for you to do something about it."
   "In short, by the time they left the party at 1:30, I had paid more in taxes that he did for the whole year."
   Stephen Ferst of East Windsor had no argument with anyone and a unique comment.
   "I moved here two years ago from a town that had much lower taxes," he said. "My taxes went up about $2,000 and I’m going to say something that’s unpopular here. I don’t think I pay enough taxes."
   He’s opposed to any district cuts, saying those who believe teachers should contribute to their own medical benefits are wrong.