Encouraging sprawl

I’ve been saying this for years:

At the heart of the matter is a simple math problem: the average cost of educating a child in New Jersey is $12,981, while the median property tax bill is $5,352, according to Census data. Although our property taxes are the highest in the nation, they can’t even begin to cover the cost of educating one child. And state aid for education fails to make up for this shortfall.

The result? Most Garden State towns make the economically rational choice to zone out housing for families with children. What’s favored instead is high-end or senior housing and commercial properties, because this kind of development brings in higher tax revenue and fewer demands for local services. This is why New Jersey has so many McMansions and malls, and not nearly enough homes that working families can afford.

Property taxes put towns in the position of chasing ratables. Commercial development decisions are based on how much in taxes the proposed business will pay and not on other economic issues — like putting jobs where they are needed — helping to promote sprawl and guarantee that jobs leave the cities. So we end up busing people from Trenton and New Brunswick up Route 130 to the warehouse zones in South Brunswick and Cranbury to jobs that local residents either do not need or would not consider. The process also short-circuits redevelopment, encouraging warehouses and corporate parks to move to formerly rural areas where taxes are lower.

The solution? There are several, including relying less on property taxes and more on the income tax, some for of tax-base sharing, increasing state aid to school and so on.

It is just another reason why the debate over taxes in Trenton is the single-most important issue of the year in New Jersey.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick

Catching the contradiction

Steve Adubato has a good post on PoliticsNJ:

Here’s the deal. If New Jersey citizens rightfully demand that property taxes either be reduced or at least kept where they are, something has got to give. Tough choices must be made. But those tough choices can’t only come from Trenton. Legislators and the governor can’t get it done alone. Local officials, as well as citizens in those communities, must decide what they really want. It’s simple math. If local officials are right, that the only way to keep property tax increases to four percent or less is to slash local services, citizens must decide if that is what they want. If that is not what they want, then there is no reasonable expectation that property taxes will go down.

If citizens don’t want to merge their fire and police departments or their local high school with a smaller high school in a neighboring town, they have every right to that, but then again there is no reasonable expectation that property taxes will go anywhere but up. Something has got to give — and fast. Simply saying, “I’m not the problem, it’s the other guy,” isn’t going to help because that approach is a big part of what got us in this property tax mess in the first place.

Couldn’t have said it better.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick

Put politics aside on this one

The AP is reporting that Republican legislators are asking that Gov. Jon Corzine back up his words with deeds.

Republicans will try to force the Senate on Monday to vote on a bill that would restrict campaign contributions from government contractors and make it tough for local political parties to pass money among themselves.

Corzine endorsed both ideas during his Jan. 9 State of the State address. Democrats in the Legislature have blocked the proposals from advancing for years.

Senate Minority Leader Leonard Lance said all 18 Senate Republicans will back the bid to try to force a vote. He asked Corzine to get enough Democrats on boards to pass it.

“We ask the governor for his leadership to provide a mere three votes on the Democratic side,” said Lance, R-Hunterdon.

While there is an element of political grandstanding and one-upmanship to this, the fact remains that such restrictions are good policy and necessary to help restore confidence in state government. (A system of voluntary public financing remains our best hope of cleaning up this mess in the long run, but the bans will offer short-term relief.)

The way I see it, Gov. Corzine and the Democratic leaders of both houses have two choices: Get behind the GOP pay-to-play and wheeling bans or offer a better bill with tighter restrictions.

There is no excuse for letting this thing wither on the vine.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick

Blame it on Hudson

I know Hudson County gets a bad rep when it comes to politics, but you have to wonder it may just be earned.

A Star-Ledger story today explains why. Writing about the so-called “Hudson nine” (the nine legislators from Hudson County), the story says:

They don’t want the state telling towns how much they can raise taxes. They don’t want a state comptroller or county school superintendent second-guessing local officials. And they see nothing wrong with holding more than one taxpayer-funded job.

The greatest impediment to many of the property tax reform ideas backed by Gov. Jon Corzine may well be the nine Democratic legislators from Hudson County.

They were in the bull’s eye Corzine targeted in his State of the State address when he called on lawmakers to set aside parochialism and personal interest in favor of the “common good.”

But the Hudson nine — four of whom are also mayors and seven of whom hold tax-paid jobs in addition to elected office — insist the Democratic governor has asked for way too much, way too fast.

Limiting the growth of property tax levies; consolidating local governments; refiguring state aid for public schools; ending dual office-holding — all of that, they argue, means the demise of local control.

But local control is part of the problem. The 1,400-plus separate taxing entities lead to a ridiculous duplication of services and waste and create conditions in which local and county officials can create their own little fiefdoms (John Lynch, anyone?) helping drive property tax rates up.

Something needs to be done to rein this in and it must include many of the reforms to which the “Hudson nine” — along with groups like the League of Municipalities and state School Boards Association — are objecting.

But staunch opposition from Hudson — along with a critical GOP — could kill many of the reform proposals that are on the table. And it appears that much of this opposition stems from the style of politics that dominates in Hudson County.

The county superintendent plan (a bad idea, admittedly) and the ban on dual office-holding would have a direct impact in Hudson County where “four of (the nine legislators) are also mayors and seven of … hold tax-paid jobs in addi tion to elected office.”

Sen. Nicholas Sacco and Assemblyman Charles Epps oppose a bill to give county superintendents authority to veto school budgets, and another to move school budget elections to November, when more people are likely to vote.

Sacco is assistant superintendent of North Bergen schools (as well as the mayor). Epps is the state-paid superintendent of Jersey City schools. Neither returned phone calls seeking comments about the legislation.

Stack has worked against a bill to ban dual office-holding. It was written to allow current dual office- holders to keep both posts, but not if they sought election to another office.

Stack is expected to announce this week that he will run for Kenny’s Senate seat, according to three prominent Democrats, while Kenny is expected to retire. Under the bill, Stack would have to surrender his mayoral seat to serve in the Senate. Last week the bill was shelved until after the November legislative elections.

Lest anyone think I’m being hard on the folks in Hudson County, the dual office-holding ban is also meeting opposition from others — including Monroe Mayor Richard Pucci, who serves as mayor and as the executive director of the Middlesex County Improvement Authority.

As the Ledger points out, the Hudson legislators are not the only impediment to reform and their arguments against many of the proposed changes are the same arguments being made by the constituencies most likely to be affected.

It would be nice if we could fix the state’s tax woes without anyone having to sacrifice their perks, but that’s not possible. All of us are responsible for the mess and all of us are going to have to help with the cleanup.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick