Township officials have said the state government has used the funds, originally collected directly by municipalities from gas or electric utilities located in their towns, to balance its budget.
by James McEvoy, Managing Editor
HAMILTON — Following the lead of Mayor Kelly A. Yaede, the governing body unanimously approved a resolution urging legislators to pursue a constitutional amendment to return energy tax receipts to municipalities.
Township officials have said the state government has used the funds, originally collected directly by municipalities from gas or electric utilities located in their towns, to balance its budget.
In Hamilton’s case, approximately $5 million in energy tax receipts has been lost annually since 2010, according to officials.
Mayor Yaede highlighted the issue during her State of the Township Address in February, and attributed the withheld funds as a primary reason why taxes are set to increase in Hamilton.
”The fact remains that if state government returned our property taxpayers’ energy receipts to 2010 levels, we could have actually reduced taxes this year,” Mayor Yaede said during her recent press conference announcing the 2014 budget.
During the budget press conference, Mayor Yaede said she was told by Tom Neff, director of the Division of Local Government services, “to not anticipate movement” on the receipts from the state.
Among her reasons for pursuing the amendment is that it would not be subject to a veto from Gov. Chris Christie, which has been the fate of recent legislative efforts to return funds to municipalities, she said.
Prior to his vote in favor of the resolution, Councilman Ed Gore explained that for a constitutional amendment to appear on the ballot both houses of the state legislature would have to support it with a three-fifths majority.
”Only the voters can actually approve an amendment to the constitution,” Mr. Gore said.
The other way the matter could be placed on the ballot is if a simple majority of both houses approve it in back-to-back years, he said, adding it could appear on this year’s ballot if approved more than 45 days prior to the election.
He said the issue is not a political one, noting that the funds have been taken over the years from a variety of communities by governors of “all parties.”
”It’s just wrong,” Councilman Gore said. “If they don’t want to let municipalities have the money they’re entitled to, drop the whole program and enable us to tax the real property of the utility the same as we do any another property owner. It’s only fair.”
Councilman Kevin Meara suggested language should be included to ensure the state would not be involved in the actual transfer of funds from the various utilities to municipalities.
”I remember the days when the check was delivered to municipalities by PSE&G,” Councilman Meara said. “My concern is it can always revert back.”
Other members of the governing body weren’t opposed to the language, though Business Administrator John Ricci noted the specific language of a legislative resolution pursuing a constitutional amendment hasn’t been drafted yet.
Council Vice President Pone was in favor of getting the voter’s involved.
”The state can fight about it forever,” Council Vice President Pone said. “Certainly, the governor doesn’t want to do it, some of the legislators don’t want to do it … but it’s our money, it’s our taxpayer’s money.
”The time has come to get the people that pay taxes in the town involved in the process,” he added. “I’m a big believer of our democratic republic, but this is one of those cases where the right thing is not being done.”

