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     Property Tax Reform, Special Legislative Session & School Funding
7-13-06 Articles - Property tax issues, teacher salaries, voucher suit filing
A continuing stream of news articles indicate that things are heating up at the Statehouse regarding ways to address property taxes. GSCS support the special session but has concerns and questions that will not go away. Some legislation has already been proposed to deal with property tax reform, so that when the Task Forces that follow the special session begin their hearings, the outcomes may already be prejudiced. While it looks like there will be few lazy summer days in Trenton, the opportunities to have a viable conversation with the public and to research questions - without being influenced by preconceived legislative positions - may be limited by time and sentiment. GSCS suggests you keep apprised of what's being promoted and spoken about from Trenton's perspective - stay informed and be ready to speak up when called.

TARGETED TOWNS
The legislation would require 11 New Jersey communities to consolidate with another municipality.

The towns and their populations are:

Teterboro, Bergen County: 18

Pine Valley, Camden County: 22

Tavistock, Camden County: 24

Walpack, Sussex County: 41

Loch Arbour, Monmouth County: 280

Harvey Cedars, Ocean County: 359

Rockleigh, Bergen County: 391

Millstone Borough, Somerset County: 410

Mantoloking, Ocean County: 423

West Wildwood, Cape May County: 448

Corbin City, Atlantic County: 468

Consolidation measure faces an uphill battle

By BILL DUHART
Courier-Post Staff

 

The bill was introduced on July 4 but hasn't generated many fireworks yet.

That may be because support for a measure from Republican Assemblyman Larry Chatzidakis of Mount Laurel to force municipalities with fewer than 500 residents to merge with municipalities with a population of more than 500 has not attracted a lot of support, which he even admits.

Chatzidakis' party is in the minority in all three branches of state government, which means he would need support from majority Democrats to pass the measure. Given the Democrats' fractious support for their own party, which paved the way for the state shutdown last week when the Democratic Assembly and Senate blocked Gov. Jon S. Corzine's budget, support for Republican initiatives would seem to be an even more uphill pursuit.

But Corzine called this week for a reduction in layers of government across the state by consolidation of services and tax collection from municipalities, school districts and fire districts. Corzine said the state has 566 municipalities and 616 school districts, which is not the most efficient way to run government.

The New Jersey League of Municipalities, however, is poised to line up against the bill, in part, because its officials say the measure substitutes the will of the Legislature for the will of towns.

Locally, the boroughs of Tavistock, with an estimated population in 2004 of 27, and Pine Valley, with a 2004 estimated population of 22, would be affected by the measure. Both are home to golf courses that make up most of the area of the municipalities.

Chatzidakis said Wednesday he hasn't calculated how much would be saved by merging Tavistock, Pine Valley and at least eight other towns around the state with fewer than 500 people, but he wants to start a dialogue about how to cut waste and repetition in government.

"This is a starting point," Chatzidakis said. "We need real structural change in how we run state government. Change may not come in this bill but maybe a similar bill will move forward."

But for Jon Moran, the senior legislative analyst for the League of Municipalities, Chatzidakis' proposal is a nonstarter.

"Aside from our philosophical problems with the bill, what are these towns doing wrong?" Moran asked. "There's a process in place where the people in towns can consolidate when it makes sense to the people in those municipalities."

Officials in Pine Valley were not available for comment Wednesday and the borough clerk of Tavistock declined to comment.

But Mayor Malcolm Fraser of Cape May Point said his town, which has a population of 250 that swells to more than 4,000 in the summer, has been challenged by the same issues as municipalities like Tavistock and Pine Valley.

"We're not going to merge into another town," said Fraser, whose town is not on a list of municipalities targeted by Chatzidakis' bill. "We refuse to do it. We have 33 interlocal agreements and subcontracts for services and have one of the lowest tax rates in the state. I think we have a well-managed town."

Reach Bill Duhart at (856) 486-2576 or bduhart@courierpostonline.com
Published: July 13. 2006 3:10AM

Tax fight derailed pension reforms

Benefits for state workers, officials up for discussion

Posted by the Asbury Park Press on 07/13/06

BY JONATHAN TAMARI
GANNETT STATE BUREAU

TRENTON — Frequently discussed reforms to lower the cost of two expensive components of government — public workers' and elected officials' pensions and benefits — will have to wait until at least this fall, and maybe longer.

Gov. Corzine called for changes to end pension system abuses in his March budget speech, but after three months of wrangling over taxes, no reforms were passed when the budget was enacted — a week overdue — last weekend.

Lawmakers say they plan to examine the state's pension system as part of a series of meetings on property tax reform this summer, but no legislation is expected until the fall.

"Mr. Corzine talks about reform in so many areas — pension reforms, pay-to-play, budgetary reforms — but when push comes to shove, nothing occurs," said Senate Minority Leader Leonard Lance, R-Hunterdon.

In a recent radio interview, Corzine said he plans to address some changes, starting with negotiations for a new government worker contract this fall. The contracts for most public employee unions expire at the end of June.

"We have to have pension reform and health care reform, and it ought to be done in the standard way that you deal with your employees, through a contract negotiation," Corzine said Tuesday on New Jersey 101.5 FM. "We're going to be calling for that early, and that's going to, I hope, save both money and make sure that public employees will be secure that they'll actually get what's promised."

Some changes, however, can be accomplished through new laws, and Corzine recommended several in his March budget speech, saying that pension abuses damage government credibility.

He called for raising the minimum salary needed for workers to qualify for a government pension, giving newly elected officials a 401(k)-like retirement plan, instead of the more generous defined-benefit government pension, and taking state contractors out of the pension system.

A state task force made some of those recommendations and others in December, but so far no one has acted on the proposals.

The state's pension contribution accounts for $1.1 billion in the budget that was approved last week. Corzine and lawmakers raised the sales tax from 6 to 7 percent to generate roughly the same amount of money.

"You have to reform, dramatically reform, the pension system" to save money, said Assemblyman Kevin O'Toole, R-Essex.

Treasury Department spokesman Tom Vincz said talks on reforms will continue.

"The legislation is, in essence, an open issue remaining with the Legislature to address the type of reform that were outlined in the governor's budget message," Vincz said.

Jonathan Tamari: jtamari@gannett.com

 

Thursday, July 13, 2006 By TOM HESTER JR.

ASSOCIATED PRESS

TRENTON -- Edward O'Mara and his wife have seen their property tax bills rise since moving to West Windsor five years ago from Morris County, and the burden is beginning to get to him.

 

"You just see a continuous increase every year," O'Mara said Wednesday, noting his taxes have gone up several thousand dollars in the last three years. Though his neighbors think about moving elsewhere, O'Mara said he wants to continue living in New Jersey, at least for now.

 

 

"Possibly the real help comes not from our Legislature, but from another state," said O'Mara, retired for 10 years from a sales and production job for a corrugated paper business.

 

Those sentiments are fueling a bid by advocates for lower property taxes to call for quick action on a proposal to let citizens -- not politicians -- change the state's tax system by changing the state constitution.

 

A constitutional convention to further that move would have to be authorized by voters in November, meaning the ballot question must be approved by the Legislature by Aug. 29.

 

It appears unlikely that will happen, with legislators planning to spend the summer considering property tax changes by mulling over school funding, public employee pension reforms, shared government services and constitutional questions. Four special panels are expected to make tax-change recommendations to the Legislature to be acted on by the end of the year.

 

But many remain skeptical that elected officials -- who caused a government shutdown this month when they failed to pass a state budget on time -- will rework New Jersey's highest-in-the-nation property taxes.

 

"While that's our hope, we are not overwhelmingly confident that hope will be realized," said the Rev. Reginald Jackson of the state's Black Ministers Council.

 

The advocates want the convention ballot question pushed forward even as legislators take part in the summer panels.

 

"Given the failure of the Legislature to deliver true property tax reform and after viewing legislative deadlock on fiscal matters in the last three weeks, we are convinced more than ever that a backup plan -- the convention -- must be in place," said Gary Passanante, mayor of Somerdale and chairman of a coalition that supports the convention plan.

 

Governor Corzine plans to speak to the Legislature about property taxes in late July. Once he does, lawmakers are expected to approve asking voters to amend the constitution to keep half the $1.1 billion raised by a sales tax increase for property tax relief.

 

Assembly Speaker Joseph Roberts Jr. said Wednesday he welcomed pressure from citizens and said the special summer property tax talks will include discussion on the proposed convention, an idea long backed by Roberts but opposed by senators.

 

"The more allies, the better," Roberts said.

 

Corzine has also supported a convention. A spokesman said he will discuss the ballot question's timing with legislative leaders.

Supporters of school vouchers filing suit

Top teachers union calls legal action 'a PR stunt'

Thursday, July 13, 2006

BY JOHN MOONEY

Star-Ledger Staff

School voucher advocates plan today to file a class-action lawsuit against the state and at least two dozen school districts in the first major legal effort to bring the hotly contested use of vouchers to New Jersey.

The lawsuit, Crawford v. Davy, will be filed in state Superior Court in Newark, they said, and will demand that the state and districts provide families of 60,000 children in 96 "failing schools" the right -- and the money -- to attend other schools of their choice, public or private.

"This is about forcing through the judicial branch what is not being provided through the public schools of the state," said the Rev. Reginald Jackson, a leading black pastor and prominent backer of vouchers in the state.

"Quality education is a civil right, and we can't wait any longer," he said.

According to a draft of the complaint obtained by The Star-Ledger, the schools would be those where a majority of children have failed the state's proficiency tests in language arts and math for two consecutive years. Also included are schools where more than three-quarters failed either test for two straight years.

The schools are mostly located in the state's large urban districts like Newark, New Brunswick, Camden and Elizabeth. But also included as defendants are districts not usually on the list of underperformers, like Englewood and Bound Brook.

The lawsuit -- named after three Newark boys who are the lead plaintiffs and the state's education commissioner, Lucille Davy -- follows similar legal actions taken in other states, so far with no success. A program in Florida that is similar to what is being proposed was recently ruled unconstitutional by that state's highest court.

But the advocates -- led by Jackson's Black Ministers Council of New Jersey, the Latino Leadership Alliance and a pro-voucher group known as Excellent Education for Everybody -- contend New Jersey is especially ripe for challenge.

They cite its strongly worded constitution and activist courts in previous legal suits that have provided billions in additional aid to urban schools but have brought only limited improvements, if any.

Among a flurry of figures and test scores, the complaint points to Newark, where more than $16,300 is spent per pupil but which still has some schools where fewer than 10 percent of students reach what it called the state's "minimal" standards.

"The courts in New Jersey have taken a very active role in providing opportunity for schoolchildren, but it's clear that money alone won't solve it," said Clint Bolick, a prominent national figure in the voucher movement who is joining the advocates in announcing the New Jersey suit.

"No state has tried harder to buy its way to adequacy," he said yesterday. "Clearly it hasn't been enough."

The lawsuit is sure to be sharply contested by the state and the districts, as well as advocates on the other side of the hot-button issue of vouchers, including the state's predominant teachers union.

Expecting the long-rumored lawsuit, leaders of the New Jersey Education Association met yesterday afternoon to start plotting their response.

"It's a PR stunt," said Steve Wollmer, an NJEA spokesman. "It's an attempt to create the impression of public support that they don't have."

Others said it was a clear attempt to deprive public schools of needed funds, and they said recent gains in many urban schools could be undermined. One critic pointed out that many of the state's highest-performing schools remain among its wealthiest.

"Money is not the only reason they are successful, but it is certainly necessary to begin the discussion," said Junius Williams, a board member of the Education Law Center, which has led much of the state's equity cases.

The plaintiffs are facing a daunting task in approaching a state court system that has committed billions of dollars to New Jersey's neediest schools through the state Supreme Court's landmark Abbott v. Burke school equity rulings.

Interestingly, the new case does not contend that the Abbott rulings have failed outright, but that enough schools have fallen short that a drastic remedy is required.

"This is not an abandonment of Abbott," said Bolick, an Arizona-based lawyer who has argued voucher cases in other states. "We are perfectly happy to see Abbott continue. There are some schools where it seems to be working.

"But these kids don't have another five or six years," he continued. "It is clear in those schools, Abbott is not working."

Bolick is a key player in the new case, providing legal assistance and some needed star power to a cause that has so far mostly languished in the state.

A Linden native and graduate of Hillside High School and Drew University, he is expected to attend a Statehouse press conference today announcing the suit. But Bolick also has already begun to pitch the case to a broader audience, including in an opinion piece yesterday in the Wall Street Journal.

Critics see Bolick's presence as a clear sign that this is part of a national strategy, funded by national pro-voucher groups.

"This is being funded by out-of-state money and is clearly an incursion into New Jersey that (Gov. Jon Corzine's) administration needs to respond to," Wollmer said. "This is part of a much bigger movement, and this is their coming-out party in New Jersey."

A spokesman for Davy -- who has been the acting commissioner for the last nine months and was given the full title by Corzine just this week -- said she wouldn't comment on the lawsuit until it is filed.

John Mooney covers education. He may be reached at jmooney@starledger.com or (973) 392-1548.

GOAL: A November ballot question on whether to hold citizens convention

Coalition wants tax study

Posted by the Asbury Park Press on 07/13/06

BY GREGORY J. VOLPE
GANNETT STATE BUREAU

TRENTON — Days after the budget crisis ended and a few weeks before Gov. Corzine and the Legislature huddle to deal with the state's property tax problem, supporters of a citizens convention to tackle the issue renewed their call Wednesday, urging lawmakers to prompt action.

The Citizens Convention Coalition called for a November ballot question that would ask voters to create a citizens convention that would study the state's tax structure and recommend changes that would be decided in the November 2007 election.

The group supports the special legislative session, expected to commence this month, which will focus on school funding, employee benefits, shared services, and whether to have a convention after 2006. But the coalition says the convention should be approved this year as a backup to relying on lawmakers to fix a problem they have avoided for decades.

"Given the failure of the Legislature to deliver true property tax reform, and after viewing the legislative deadlock on fiscal matters in the last three weeks, we are convinced more than ever that a backup plan, the convention, must be in place," said Gary Passanante, coalition chairman and Somerdale mayor.

Coalition members said local governments in New Jersey derive 45 percent of their revenues from property taxes — well above the 30 percent national average. They said they hoped lawmakers would fix property taxes during the summer session but were not sure that would happen.

"We are not overwhelmingly confident that hope will be realized," said the Rev. Reginald T. Jackson, executive director of the Black Ministers' Council of New Jersey.

While the convention is on the agenda for the special summer session, it's doubtful that lawmakers will act quickly enough to meet the Aug. 29 deadline to get such a question on this fall's ballot.

Assembly Speaker Joseph J. Roberts Jr., D-Camden, a proponent of the citizens convention, would like it done soon but acknowledges it's not likely for this year.

"The speaker certainly would prefer to have a ballot question this year, but the creation of a citizens convention joint committee for the special session is an acknowledgment that passage in both houses probably is not realistic for 2006," Roberts spokesman Joe Donnelly said.

Representatives for Corzine and Senate President Richard J. Codey would not say whether either favors putting the convention before voters this year.

"The governor will continue to work with leadership of both parties in the Legislature on the timing of this ballot question," Corzine spokesman Brendan Gilfillan said via e-mail.

Codey said taxpayers would not feel effects of a convention until 2008, while lawmakers could enact changes this year.

"We understand their concerns, and that's why we want to get to work as soon as possible," Codey said in a statement. "It's important to understand that a constitutional convention is not a plan; it's a mechanism for implementing a plan."

Gregory J. Volpe: gvolpe@gannett.com

Coalition prods Legislature for tax referendum in fall

Thursday, July 13, 2006

BY DEBORAH HOWLETT

Star-Ledger Staff

New Jersey property owners clamoring for long-term tax relief might have to be patient.

Leaders of a broad coalition of citizen activist groups conceded yesterday the soonest the public could vote on convening a citizens' convention that has the authority to rewrite state tax laws would be November 2007.

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At the same time, the coalition leaders called on the Legislature to place a referendum on this November's ballot -- even if it means creating a citizens' convention that is essentially advisory -- so the public will have a voice if lawmakers dodge key issues in the upcoming special session on property tax reform.

"A citizens' convention is the shortest escape route from the property tax crisis, should the legislative special session not produce reform," said Martin Perez of the Latino Leadership Alliance. "Only the convention approach allows the people who pay the piper to call the tune."

Assembly Speaker Joseph Roberts (D-Camden) said a citizens' convention is "an important and necessary element" in tackling the $20 billion problem, and state lawmakers are equally keen to producing "lasting and meaningful" property tax reform when the special legislative session begins at the end of the month.

"When it comes to this state's property tax system, we can never take action soon enough and there never can be enough people calling for reform," Roberts said. "The more allies, the better."

The coalition comprises more than a dozen groups, ranging from the AARP to the League of Women Voters; the Black Ministers Council of New Jersey to Citizens for Public Good. Its efforts are underwritten largely by the New Jersey State League of Municipalities, which is also a member.

It has produced what it calls a "road map" to reform, which advocates a "revenue neutral" reduction in property taxes. That means any lowering of property taxes would be tied to an increase in other taxes, rather than budget cuts.

The road map also calls on eliminating "inequities" in the current system that adversely affect low- and moderate-income residents, as well as "greater uniformity" in the way property taxes are applied statewide.

"This summer has to be dedicated to giving the people of New Jersey real hope," said Somerdale mayor Gary Passanante, the chairman of the coalition and the League of Municipalities property tax reform committee. "We are tired of empty promises. We are tired of the legislative logjam."

Right now, the coalition claims, 44 percent of the total tax revenue in New Jersey comes from property taxes, compared with a national average that is closer to 30 percent.

The Rev. Reginald Jackson of the Black Ministers Council said the fight over the budget showed lawmakers are able to overcome heartfelt and substantial differences of philosophy over the sales tax increase, and that should be a sign they can take on this tough issue.

"Now that the battle of Trenton is over," Jackson said, "it's time to step up to the plate and ensure that there is real property tax reform."

Deborah Howlett covers politics. She may be reached at (609) 989-0273 or dhowlett@starledger.com.

The ABC's of teacher salaries fuel disputes

Hefty raises for new hires proves vexing at pact talks

Thursday, July 13, 2006

BY LISA RICH

Amid a growing generation gap in the ranks of New Jersey public school teachers, newly hired staffers are reaping heftier raises than veteran educators as districts scramble to lure the best prospects from the pool of applicants.

School officials say they need to increase salaries at the bottom of their pay scales and offer competitive packages to snag top-notch newcomers who can fill jobs left open by retiring staff.

Those pressures, however, are making negotiations thornier in some districts where the interests of paying newer teachers is collid ing with those of long-term faculty.

In Hamilton, the disparity in percentage increases has left teachers and board members at a stalemate in approving next year's salary guide, which determines how the raises are distributed.

While board members insist on offering equal and higher percentage raises to newcomers, the senior educators want to receive a larger percentage, even though their higher salaries mean they pull in more dollars in raises overall.

"The majority of our teachers expect a raise that represents those who have been here the longest," said Fred Schwartz, president of the Hamilton Township Education Association. "We want the newcomers to have money, too, but the people who have been here 25 to 30 years are receiving an increase that is minimal."

While neither side would disclose details of the negotiations, the three-year contract that ex pired June 30 reflects the school board's thinking.

New faculty in Hamilton have received a 6.5 percent raise in the past three years while teachers with far more experience received about 5.7 percent.

The school district now offers $38,877 to first-year teachers with a bachelor's degree, up from the $36,524 offered in 2003.

By contrast, a staff member with a doctorate and 12 years' experience was paid $70,153 in 2003 and $74,153 in 2006.

Hamilton school board member and negotiator Christopher Tozzi said past practice was to allow the majority of long-term teachers to receive the highest salary increases, but over time, the method created "bubbles" in the system that prevented the district from competing for the highest quality of educators.

The two sides are working with a state mediator in an effort to reach a contract agreement by September.

The conflict over pay scales in Hamilton is likely to be mirrored in other districts as teacher demographics continue to change, said Steve Wollmer, spokesman for the New Jersey Education Association.

More than 30 percent of teachers statewide are new hires, meaning they've been in the work force for less than three years, Wollmer said. This percentage is expected to skyrocket when the more than 2 million teachers nationwide retire within the next 10 years.

In New Jersey, more than 7,000 of the 100,000 teachers retire each year and the state expects the number to drastically increase as Baby Boomers reach the end of their careers, Wollmer said.

Teacher shortages are most prevalent in the areas of mathematics, science, foreign language and special education.

For a new teacher, the salary and professional development offered the first five years at a school district is critical, said Frank Belluscio, communications director for the state's school board association.

"Without a competitive salary, a new teacher may pursue a position elsewhere," he said.

In Washington Township, al most half of the 210 teachers are new hires who were needed to replace retiring faculty and to work in the new high school, said Superintendent John Szabo.

In the past four years, district salaries for first-year teachers with bachelor's degrees have increased by 16 percent -- starting at $36,757 in 2002-2003 and topping out this school year at $42,680, slightly higher than the $41,836 average statewide.

Five years ago, the starting salary statewide was $33,000.

Over the last four years, Washington Township teachers with 17 years' experience and a doctorate were given a 12.5 percent raise -- 3.5 percent less than new hires -- rising from $64,237 to $72, 283.

Though the increase for senior educators is less than what newcomers receive, the bulk of new teachers may not have signed a contract if the salary was less, Szabo said.

"Without a competitive salary, we most likely wouldn't be able to attain the kind of teachers we wanted," he said.

Similarly, new hires at South Hunterdon Regional School District have received a 4.7 percent increase in salary in the past three years, up from $36,500 to the cur rent $38,222. Teachers at the top of the salary guide with 19 years' experience earned a 3.9 percent raise, jumping from $73,947 to $76,901.

Fifteen of the school's 43 teachers are new hires, said Principal Donald Woodring.

"Now if we want to hire the best teachers out of college, the salary has to be competitive," he said. "Otherwise, it will be more difficult to hire who you want and even harder to retain them."

The trend of enticing young teachers with higher salaries is not expected to change any time soon as schools continue to need young educators to replace retirees, Wollmer said.

"Many districts neglected the starting salary for new teachers for years, and now they're thinking about what they need to attract the best, because a lot of teachers are retiring," Wollmer said. "As more retire, you'll see that even more districts will beef up starting salaries."

Contact Lisa Rich at (609) 989-5723 or erich@NJTimes.com