The people of New Jersey elected Gov. Chris Christie to get government under control and begin to ease the property tax burden that so many households in this state face.
He is working hard to accomplish these goals because he understands the immense strain that costly government and escalating property taxes are having on senior citizens, families and young people just starting out.
In recent weeks, the governor has been traveling around New Jersey to speak directly to residents about his reform agenda for real, lasting property tax relief. While people are rightly examining the governor’s budget proposal to see what spending reductions need to be made to close the state’s $10.9 billion be made to close the deficit, Gov. Christie understands that the focus cannot just be on cuts. He is determined to address the structural issues that result in the property tax hikes most of us have been forced to deal with year after year. Over the last decade, property taxes have grown by more than 70 percent, driven by local spending that has risen by 69 percent in the same time period. Right now, the average annual property tax bill for a family in New Jersey is $7,281.
Gov. Christie’s package of reforms centers on Cap 2.5, a constitutional amendment to limit property tax increases to no more than 2.5 percent a year. Discretionary state spending would also be capped at 2.5 percent. Such a cap will establish fiscal discipline on every level of government in New Jersey. With Cap 2.5, if a municipality, county or school district wanted to raise property taxes higher than 2.5 percent, they would have to put it on the ballot and let voters decide. Cap 2.5 will allow the people of New Jersey to control property taxes.
Opponents of Cap 2.5 insist it would lead to massive service cuts and layoffs. The reality is the cap will encourage local governments to find waste, abuse and inefficiencies in their operations. Also, the cap will permit adjustments in the event a municipality adds new ratables, and local governing bodies that do not spend up to the levy cap will be allowed to bank the extra levy and use it in subsequent years. In addition, there will be times when voters decide they are willing to absorb a higher property tax increase in order to have a new program or hire more police officers.
The governor’s reform package is not only a cap on property tax increases and discretionary state spending, it is also a “tool kit” of cost-control measures for local government that, when enacted, will represent bold, positive change for New Jersey.
As part of Gov. Christie’s tool kit, arbitrators assigned to resolve collective bargaining disputes will have to take into account Cap 2.5 and cannot award benefits to public workers that are more than 2.5 percent a year. Arbitrators will be required to consider how their decisions impact property taxpayers. Local governments will have the ability to opt out of civil service, so that mayors can run towns more like a business. If someone is not doing a good job, they can be dismissed. If the job is not needed anymore, the position can be eliminated, so taxpayers are saved the expense. Local governments will have the ability to negotiate with the private sector to offer a variety of benefits options that can lower government costs and give workers an opportunity to pick a health plan that best fits their needs. Public workers will be required to contribute 1.5 percent of their salary to their health benefits.
These reforms are exactly what the governor promised when he was running for office — to bring common sense solutions to Trenton that will allow municipalities, counties and school districts to control their costs and limit their spending. You can visit the “Cap 2.5: Real Property Tax Relief Now” webpage at www.state.nj.us/governor/ cap/index.shtml to sign a petition in support of the cap and view a list of mayors who have voiced support of the proposed amendment. If you do not see your mayor listed, you are strongly encouraged to ask him or her to support the governor’s push to place Cap 2.5 on the November ballot for voter consideration and his reform tool kit.
More spending, more borrowing and more quick fixes that ignore the underlying fact that we spend too much, not simply that we’ve taxed insufficiently, cannot be tolerated. Everyone must step up to make a difference and make New Jersey more affordable.
Lori Grifa is the commissioner of the N.J. Department of Community Affairs.