The Record today offers a rather succinct look at the dead horse that is the special legislative session on tax reform. I had been skeptical of a state constitutional convention on taxes — partly because I am concerned that some draconian and ill-advised rules could be forced into place (a super-majority rule on taxes, for instance, or arbitrary caps), but also because I believe it is the responsibility of the people we elect to get things done.
But there are some facts that make this a far more difficult haul than it should be:
1. Municipalities and school districts are resistant to any discussion of forced mergers, though the kind of municipal consolidation necessary to save money can only be accomplished by the Legislature.
2. State workers are not going to go quietly and most Democrats are not going to want to buck the unions. The governor is not wrong about some of this — copays and plans should be part of the negotiating process. But there are obvious reforms that need to be enacted as quickly as possible that could save some money and infuse the pension process with a badly needed dose of rationality. In particular, we need to have a ban on double-dipping and a change in the way that pension payments are determined (the current system invites abuse). And there is nothing wrong with increasing the retirement age.
In general, though, the entire pension problem is a symptom a larger defect — i.e., we do not have a functional national pension system leaving private-sector employees to fend for themselves; this creates the kind of animosity and jealousy that pits public employees against the rest of us.
3. Increase the state income tax, especially at the upper levels, and increase the amount of state aid to schools and municipal governments (in particular, those with smaller per capita ratable bases or income levels). This will help shift some of the tax burden off the property tax.
Instead, we have vague promises of a 20 percent property tax credit, a voluntary (read useless) consolidation program and pension chaos.
You have to hand it to the folks who run the state.
South Brunswick Post, The Cranbury Press
The Blog of South Brunswick
