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First Do No Harm Preserve Current Aid
Levels Against Inflation As the Governor's Property Tax Commission completed its deliberations, the Municipal Council of Jersey City and I passed a unanimous resolution asking the state Legislature to commit itself to protecting State aid to municipalities against cuts and erosion from inflation. Such a plan would ease the property tax burden on New Jersey residents. Therefore I am sending copies of this resolution to all New Jersey Mayors, asking them to help lobby the Legislature on behalf of this plan. Although we don't know what the outcome of the Governor's Property Tax Commission's recommendations will be, we do know this: at minimum, the Legislature should make a commitment to New Jersey property taxpayers aid to municipalities. In fact, the Legislature should preserve current aid levels against the ravages of inflation by increasing aid amounts each year by the previous year's Consumer Price Index. After all, the legislature's first commitment to property taxpayers should be that it will Go no harm! The State of New Jersey is enjoying a significant budget surplus, and various members of the Legislature have made proposals relative to new spending programs. But at this juncture, the Legislature has not made any commitment to preserving current state aid levels to municipalities. The Jersey City resolution calls upon the Legislature to make such a commitment and to increase current aid levels at least by the rate of inflation each year. Jersey City, like all other New Jersey municipalities, relies heavily on property taxes for its revenues. In fact, Jersey City is barred by the state from using any other form of taxation. Under these constraints, my administration has worked tirelessly to keep taxes, and spending in check. The city's tax levy has increased by only 1.9 percent since 1992, compared to a 21.4 percent increase in the rest of Hudson County. City spending has increased by only 3.1 percent since 1992, compared to a 22.4 percent increase in the rest of Hudson County. Both of these figures are well under the 14.4 percent inflation rate for this period. Our fiscally responsible policies have clearly saved Jersey City taxpayers money. Our communities are fighting to hold down property taxes, but if the state cuts municipal aid, it will be like having the rug pulled out from under our feet. Increasing state aid to municipalities by the rate of inflation each year would be relatively inexpensive now, given our current low inflation rate, yet it would greatly aid municipalities in keeping property taxes down. With New Jersey flush with a budget surplus, the Legislature has an obligation to help municipalities reduce their property tax load before engaging in any new spending programs. Bret Schundler is the mayor of Jersey City and a member of the New Jersey State League Of Municipalities' Executive Board. |
