Michael Cerra, New Jersey League of Municipalities
This year, as never before, under the leadership of Janice Mironov, East Windsor mayor and League of Municipalities first vice president, New Jersey mayors united in an effort to end the state’s chronic dependence on municipal property tax relief revenues.
Thanks to the efforts of local officials all around New Jersey and the state officials who recognize and appreciate their service, we progressed ever closer to the restoration of vital municipal property tax funding.
For years, instead of being spent on local programs and services and used to offset property taxes, the money has been spent as successive Legislatures and administrations have seen fit. We don’t doubt that it was put to good use and spent on good programs. But they are not the uses intended in the original laws.
The cumulative impact of years of underfunding has left property taxpayers with greater burdens and many municipalities with unmet needs. Whether they be related to deferred investments in local infrastructure, the loss of public safety personnel, dangerously low fund balances or any other local need, local elected officials are in the best position to decide.
Further, these monies were always intended to fund local programs and services.
A-2921/S-1900 would phase-in, over five years, the restoration of $331 million in municipal property tax relief funding. Municipalities had sacrificed that $331 million in state fiscal years 2009, 2010 and 2011 to support the state’s budget in those difficult years.
These bills were introduced, supported and passed by legislators who acknowledged that the restoration of these resources would have allowed mayors to provide their citizens with real property tax relief this year.
The bills, which garnered bipartisan support in both houses, would have moved the state closer to compliance with the letter and intent of the 1999 law governing distribution of funds deposited in the Energy Tax Receipts Property Tax Relief account and the Consolidated Municipal Property Tax Relief Aid program.
Support for the bills came from mayors from all around New Jersey. North, South and Central Jersey — Republicans, Democrats and Independents — from cities, suburbs and rural communities — all lost property tax relief revenue in fiscal years 2009, 2010 and 2011. And all would gain property tax relief resources from A-2921/S-1900.
On behalf of mayors all around our Garden State and on behalf of the citizens they serve, we urged Gov. Christie to approve this initiative. We also offered to meet with the governor or his staff to address any questions or concerns they may have had with the bill.
Instead, referring to state budget concerns, the governor has vetoed the bill. As a result, this year, as in the past, these dollars will again be used to support state spending.
Having come this far, New Jersey mayors cannot stop now. We intend to continue to push for the restoration of this relief when the Legislature reconvenes. And we hope that this matter will finally be given the attention it deserves as the administration sets its priorities for the near future.
The diversion of municipal resources to cover state spending needs to end. We call on the governor and the Legislature to provide mayors with this important tool, which was always meant to relieve the worst-in-the-nation property tax burden borne for too long by the people of New Jersey.

