Gov. Jon Corzine is challenging the state Legislature to take the tax-reform process seriously. The governor — responding to the release of 98 reform proposals that include a 20 percent tax credit, a new school aid formula and incentives for towns to merge — said during a speech today at the state League of Municipalities convention in Atlantic City that the Legislature must think long term in making changes.
“Reform is popular. Reform and sustainability are hard, very hard,” he said (quoted in The Star-Ledger).
He continued his call — a good one, probably a necessary one — for a state comptroller, and he wants property tax increases, not just school tax increases, capped at 4 percent a year. And, perhaps most importantly, he wants the Legislature to be more aggressive on the consolidation issue.
As I wrote yesterday, the Legislature is prepared to offer incentives but has backed away on its plan to create a base-closing like commission that would offer a list of towns to be merged, with the Legislature having final say. Now it plans to leave it to towns — which is destine to scuttle any chance of significantly reducing the number of municipalities or school districts.
As for the tax credits:
The governor said he supported the legislative recommendation to provide a 20 percent tax credit for a “substantial portion” of homeowners. But he said that goal is “constrained by available resources,” and he challenged the legislature to be responsible in paying for it.
“Providing relief and then retreating in a year or two because we don’t have the money is neither desirable nor acceptable,” he said. “Let me be clear, whether the subject is the budget or property taxes, I can’t support short-term fixes.”
If anyone remembers the state shutdown earlier this year, they will understand that Gov. Corzine is serious. And given the fiscal disaster the state is facing, all should admit that he’s right.
See the reports at the following links:
South Brunswick Post, The Cranbury Press
The Blog of South Brunswick
