Marlboro mayor likes Corzine’s proposal to defer pension payment

Gov. Jon Corzine’s proposal to defer the payment of half of the 2008 contributions to the pension system comes as a welcome lifeline to New Jersey taxpayers.

We are living in a period of unprecedented stresses on America’s economic system. New Jersey is not immune from tough times. Across the state, economic growth and business activity have slowed dramatically, if not declined. Many people have lost their jobs. Others dependent upon investments to provide a portion of their retirement incomes have seen significant declines.

Many towns and cities across the state are facing budget stresses as a result of the 2008 economic storms. Property tax payments have not met expectations due to declines in growth and delinquencies. Investment income is down for government just as it is for investors.

At the same time, costs that are beyond the control of local government have continued to climb. While we are all enjoying lower fuel prices in November, energy costs were higher for the first 10 months of the year when oil climbed to almost $150 a barrel. The costs of pension and health plans have continued to climb.

The result is that local government now faces the unhappy situation where revenues are declining while expenses are rising. Since we are required to balance our budgets, local government needs to tighten its belt. Budget cuts will undoubtedly be made across New Jersey. Savings from structural changes to local government such as regionalization and shared services will continue to develop but are not immediate. Without Gov. Corzine’s proposal, significant property tax increases will undoubtedly be required throughout New Jersey.

New Jersey residents already pay unreasonably high real estate taxes. That was the case in good times. In tough times like these, government should do whatever it can so as to not further aggravate a difficult situation.

Substantial increases in real estate taxes are counterproductive in recessionary times. They only make the situation worse, straining the already limited resources of struggling families and contributing to further disruptions. Housing is already under tremendous pressure. Values will be further adversely affected by higher taxes. Increases in taxes will contribute to more families losing their homes.

There are some who may argue against pushing pension costs to future years. Under normal circumstances, I would agree with them. But these times and their circumstances are far from normal. America – and New Jersey – is experiencing once-in-a-lifetime pressures. Gov. Corzine’s proposal to defer half a year’s pension contribution and spread it over a threeyear period is a bridge to better times which will no doubt come. The American Dream may be a bit wilted these days, but it is resilient.
Jonathan L. Hornik
Mayor
Marlboro