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One state lawmakers gets it: "But Corzine last Monday said a plan won't be ready for the new fiscal year, which angered legislators such as Sen. Barbara Buono, D-Middlesex, who argued a new school funding plan is vital to cutting property taxes and wants the state to continue pushing to quickly complete a new one. "I'm not giving up," Buono said. "This is just too important..."
The Governor and the Department of Education state that they cannot come up with a school funding formula for next year; the legislature plans to overlay a 'super' county superintendent bureaucracy that proposes to impose more regulations & mandates on schools that have been struggling under 5 years, going into the 6th, year of underfunding school formula aid and students; the flat funding, which amounts to approximately $2.2B over these past 5 years, is a direct tie-in to the growth in property taxes. One has to ask, what are they thinking in Trenton? Tax reform has not been established and tax burden will not be relieved in the overwhelming majority of our towns and school communities....The legislature has been let off the hook of having to deal with a new school funding formula entering this fall's election where all 120 legislative seats are up. What can we point to as a positive step from Trenton that begins to resolve fairness in school aid support for all New Jersey communities, balanced by state acknowledgement of its negative role in this regard which exaccerbates local costs? To date, not much...By not facing the need to increase and to equitably distribute school funding to hundreds of school communities and to their disabled students as well - the state legislature and Governor Corzine will again, for the sixth straight year, ignore one of our state government's most basic roles: that is, to bolster those public school children in need no matter where they live - middle income, and wealther and poorer communities - and to help offset local property taxes - thus helping local taxpayers - through state support aid. CLICK HERE TO READ A SAMPLING OF EDITORIALS THAT SHOW THAT THE PRESS GETS IT TOO...P.S. GOVERNOR CORZINE'S BUDGET ADDRESS IS NOW SCHEDULED FOR FEBRUARY 22.
School aid fix deferred again
Posted by the Asbury Park Press on
Largely lost amid the smoke — and mirrors — of the property tax relief fiasco in
One of their worst failures, however, was deferring action on the gross spending inequities in
The state's 31 poorest school districts, the Abbotts, account for 23 percent of the public school enrollment but receive 58 percent of state education aid. In 2005-06, according to the latest Department of Education figures, the average per-pupil cost in the Abbotts was $14,057 — 20 percent higher than the state average of $11,653.
Per-pupil spending in the Abbotts was an eye-popping 40 percent higher than in the so-called CD and DE socioeconomic groupings — the state's lower-middle income districts. Those two groupings include most of the larger districts in
It's disgraceful how few of the property tax reforms recommended by four legislative committees last fall have been enacted. There is no greater disgrace than the failure of Corzine and the Legislature to rectify the unfair manner in which state aid is funded and dispensed.
STAR LEDGER EDITORIAL
Progress, Trenton
This time, we were promised, would be different. Merely tinkering with rebates wouldn't do. This time
That's what Gov. Jon Cor zine, Senate President Richard Codey and Assembly Speaker Joseph Roberts said last summer when the Legislature em barked on its special session on property taxes.
Seven months later, what we got was mere tinkering with re bates. No changes in the way state and local governments raise revenue or how they spend it.
A lot of spin is under way to convince taxpayers the legislation adopted this week is groundbreaking. Don't believe it.
In fact, the promised rebates are only slightly more than what homeowners got in 2004. Only in
Then there's the property tax cap that's not a cap at all because there's an exemption for everything.
The school aid formula re mains unchanged. With schools responsible for at least 55 percent of the property tax bill, how can any real reform occur without addressing a redistribution of that aid?
As with past property tax plans, the overriding goal for legislators has always been to get through the next election. If the type of government reform promised during those heady days last summer had to be sacrificed, so be it.
The bills sitting on Corzine's desk will get those wanting to return to
For a while, we actually be lieved them. Shame on us.
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NJ lawmakers' budget wish list: No tax hikes, more school aid
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By TOM HESTER Jr. The Associated Press |
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Corzine is to introduce his spending plan on Feb. 22. It will come with the state facing a projected $2 billion deficit for the budget year that starts July 1.
It will be his second budget proposal. Last year, he proposed increasing the state sales tax top help erase a $4.5 billion shortfall, only to run into stiff opposition from fellow Democrats in the Legislature. The tense standoff closed state government for a week in July.
The sales tax increase was approved after Corzine agreed to devote half the money to help ease the nation's highest property taxes. That money is now to be used to help provide a 20 percent property tax cut for most homeowners.
"I'd like to see a no-tax-increase budget," Senate President Richard J. Codey said. "I don't want to go through that fight like we did last year."
The administration has recently declined to comment on what may be in the spending plan, although Treasurer Bradley Abelow has said he doesn't expect the administration to seek increases in major taxes, such as income, sales and corporate income levies.
"We will unveil our budget proposal in about two weeks and will have a lot to say about what it contains then," Corzine spokesman Anthony Coley said.
Legislators are waiting to see whether the governor proposes increasing smaller taxes and fees.
"I think it's essential that there be no tax increases," said Assembly Speaker Joseph Roberts Jr., who led last year's opposition to the sales tax increase. "That would be my great hope. At a time when we're cutting property taxes, I think we have to be mindful that we're not raising revenues from other sources."
The budget plan comes in a year in which all 120 legislative seats will be decided in November's election. Democrats control the Assembly 49-31 and the Senate 22-18.
One possible alternative could be money earned off state properties. Corzine is considering selling development rights to some state properties and possibly leasing toll roads and the state lottery to private companies, moves that could earn the state billions of dollars.
Corzine would like to use that money to pay the $2.7 billion in debt the state will owe next fiscal year and free up money for other needs. But Abelow has said it will take time to thoroughly study those ideas and they aren't being relied upon to balance the new budget.
Corzine recently cited another possible way to raise money — allowing video lottery terminals in
The idea has been tossed about in recent years, but never pursued amid opposition from the casinos. It has typically centered on allowing 5,000 terminals at horse racing tracks to raise $300 million for the state, but Corzine also emphasized he was just mentioning the idea, not advocating for it.
Codey and Roberts both want to see the state increase aid to public schools. The state is providing about $10.5 billion this year — nearly a third of all state spending — but hasn't increased aid to most schools in five years.
Meanwhile, schools — especially rural and suburban ones — have been forced to rely more on property taxes that are twice the national average and have increased 7 percent annually.
Legislators and the administration have been working on a new funding formula for public schools, based more on how many special needs children a district has, as opposed to community wealth.
But Corzine last Monday said a plan won't be ready for the new fiscal year, which angered legislators such as Sen. Barbara Buono, D-Middlesex, who argued a new school funding plan is vital to cutting property taxes and wants the state to continue pushing to quickly complete a new one.
"I'm not giving up," Buono said. "This is just too important."
Corzine has said the state will try to increase school aid anyway, but declined to state how much. Buono said she's heard he may propose a 4 percent increase — or about $400 million. That would "at least be something," Buono said, but she still called that "inadequate relief."
Assembly Budget Chairman Lou Greenwald said any discussion on what might be in the budget proposal is "speculation this time of year," but said a 4 percent increase in school aid would be a "significant stopgap" as the state completes a new formula.
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Senate: Yes on cap, mum on dual office holding
It took an extra day, and a few Republicans to boot, but on Tuesday the state Senate approved a plan that will reduce many homeowners' taxes by 20 percent. Hold the applause.
New Jerseyans are overtaxed. No one argues that. A 20 percent reduction in property taxes for households earning less than $100,000 sounds great. Heck, it is great. However, no matter how the state Democratic leadership wants to dress it up, this is not lasting relief.
These tax cuts will work only if municipalities hold to a 4 percent cap. The problem is that many municipalities have contractual obligations that exceed the cap. Those obligations exceed the cap now and will continue to exceed the cap in the future if contract arbitration settlements are higher than 4 percent. You cannot have the tax credits without the cap. And the cap is meaningless unless municipalities have a legal leg to stand on. They do not.
Democrats were compelled to come up with something that looked like property tax reform before November elections. No doubt some voters will be happy with either a tax credit or a check in the mail. However, they should not be fooled. This is a halfway measure. Tax relief is all or nothing. And the Senate has just passed nothing by a vote of 28 to 10.
There was no passage of a bill on dual office holding, a practice that contributes directly to the conflicted legislation that passes through both houses of the Legislature. Being a mayor or councilman while being an assemblyman or senator is not in the best interests of anyone except the dual officeholder.
The Senate and the Assembly cannot agree on whether a dual-office-holding member of the Assembly can move to the Senate without giving up the other elected office. New Jerseyans are cruising on the Titanic, and guess who's getting in the lifeboats?
We are told we should be happy with some tax relief. Why? Some tax relief now without fundamental structural changes in how government services are funded is temporary. A 4 percent cap is not enforceable unless the Legislature takes a tough stand with the special interest groups that fund their reelections. It's that simple.
The Legislature does not need to go that far. Its first priority is the November elections. It's that simple.
The question for New Jerseyans: Are we?
Courier Post editorial
Tax relief plan is only the first step
Taxpayers should applaud the property tax credits. But lawmakers' work is far from complete.
The property tax relief plan passed Tuesday by the state Senate is now all but assured to become law with the governor's pledge to sign it. Unfortunately, the plan is far from perfect. It doesn't bring as much savings, especially for seniors, as New Jerseyans deserve. And, if the relief only lasts for a year or a few years, nothing will have been accomplished.
For a couple earning less than $100,000 a year and paying $6,000 in annual property taxes, the actual relief, minus the $300 NJ Saver rebate that's being eliminated, is $900 per year. That's good, but hardly monumental.
Nevertheless, New Jerseyans should be pleased that most Democrats and Republicans, in the end, realized how important it was to give the weary taxpayers of this state something back, even if it's not half or even a quarter of what they shell out. The anger over taxes that's uniform across the state was motivation enough for politicians not to divide down party lines when it came time to vote -- the plan passed the Assembly 71-8 and the state Senate 28-10.
For too long in
Whether this relief stops the exodus and prevents more New Jerseyans from falling into poverty remains to be seen. Frankly, there are more critical tasks at hand for state lawmakers and Gov. Jon Corzine if they want to prevent these things from happening and ensure that
Other tasks
State lawmakers must now figure out how to make the tax relief permanent. If it only lasts a year or two, as some Republicans think may be the case, it will have been little more than a mirage, one which voters should punish lawmakers for selling to them. The tax credits (20 percent for households earning less than $100,000, 15 percent for those earning between $100,000 and $150,000 and 10 percent for those earning $150,000 to $250,000) must be made permanent along with the 4 percent caps on annual property tax increases for municipalities, school districts and other entities.
Another critical task awaits Corzine: He must negotiate better contracts with state workers that reflect today's reality. No longer can
School funding
And, most importantly, the governor and legislators must tackle the 800-pound gorilla in the room -- the school funding formula.
Coupled with a freeze in state aid for most school districts since 2001, this overreliance on property taxes has meant soaring tax bills for homeowners over the past few years. Most hurt by this have been senior citizens and others on fixed incomes with paid-off homes. Their dreams of staying in
Lawmakers must devise a new funding formula for local schools that relies less on property taxes and more on some other revenue source or sources. Relying less on property taxes would bring substantial and permanent relief to seniors.
Spending cuts should be part of the equation, and that may mean more consolidation or shared services among
We're pleased to see this plan finally pass, more than a month after the original Dec. 31 due date.
But it cannot, by any stretch of the imagination, be cause for Corzine and legislators to rest on their laurels. There's much work to be done to cut spending, make government more efficient, end pension abuses, make the relief permanent, give more relief to seniors and devise a better way to fund schools.
Published: February 08. 2007
The Record
Will Little Jonny get a passing grade?
As every grade-school parent knows, fourth grade is a huge year. It is the year the kids start "getting ready" for middle school. It is the year the students start thinking abstractly and the homework gets serious.
It is the year of long division and mathematical estimation, of social studies, of big vocabulary words, and of taking personal responsibility for your work.
You still have snacks, and you still have recess, but the days of skating by on your basic smarts are over. Real work is involved, and if that work is not done, a pink slip is sent home.
If your mom forgets to sign your graded tests, it is not her fault. It is your fault for not making sure she does so, and you will get a pink slip for that. Pink slips can add up to lower grades. Fourth grade is about accountability. Some kids find it a big adjustment.
Little Jonny Corzine is one of those kids.
JC: Mrs. McGarry, another pink slip? What's this one for?
MM: You did not complete the assignment on time. You promised real property tax reform by the end of the year and you have not done it.
JC: But we just passed a bill to give a tax credit of 20 percent to most homeowners!
MM: That was not the assignment. You did not read the directions carefully. The assignment was REAL TAX REFORM, not some silly tax credit. And here's your math test back.
JC: A "D"? I studied for this!
MM: You need a lot of work on your equations. You promise a $2.2 billion tax credit but have not shown how you're going to pay for it. You need to show your work on the back of the test.
JC: But I did it in my head.
MM: And it came out wrong. That's why we ask you to show your work.
JC: OK, OK, I don't really know how to pay for it. I was just estimating and hoping it would work out.
MM: You should try following some of the 98 recommendations all those special committees made. They have lots of good ways to save money.
JC: But nobody likes those recommendations! I couldn't get anyone to agree. Everyone was yelling, and it was too hard so I just gave up.
MM: That sounds like third grade behavior to me, Jonny. Fourth graders are problem solvers, yes? Fourth graders know there are no excuses. If the work does not get done, it is your fault and you can't blame anyone else. Have you met again with the public employee unions about their benefits yet?
JC: No, but I'm going to ... soon, I swear.
MM: Are you afraid of the unions, Jonny? Are they bullying you?
JC: (Blinking back the tears) Yes! But I don't know what to do! They said if I don't play their way I'm going to feel the pain.
MM: This school has a strict no-bullying policy. Bullying hurts everyone. You're not supposed to fight them on your own. You can expose them and let them get the help they need. Bullies act out of fear and unhappiness. Be a leader! Do you have some other kids to play with?
JC: Well, yes. I play with millionaires at recess.
MM: Mm hm. Are you letting people hold dual public offices even though we all know that's cheating?
JC: Yes ... but they're my friends!
MM: Friends we have to pay to be friends aren't really our friends, are they?
JC: No. I guess not. I've been duped.
MM: Good vocabulary word! You are doing well in reading. But you're failing math, and social studies, and you're not working well with groups. You'd better take your seat. Did you finish that paragraph on the role of state comptroller?
JC: Uh ...
MM: That's going to be another pink slip.
Pam Lobley, who lives in
