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Articles & editorials from The Record, Press of Atlantic City, Courier Post, Gannett, Star Ledger, NY Times, Asbury Park Press. Read to keep up to date on State Budget FY07 pressures and the overriding question of what to do with property tax revolution - exaccerbated by 5 years of frozen stateformula aid - combined with the recognition that school funding needs to be stabilized so that our schools don't get leveled down...Includes article where NAACP criticizes Governor Corzine for holding Abbott to flat funding for next year.
Courier Post, Sunday 6-11-06
Lawmakers must deliver real tax reforms
States with the highest property tax collection per capita, according to the nonprofit Tax Foundation (based on 2004 federal data):
New Jersey: $2,099
Connecticut: $1,944
New Hampshire: $1,940
New York: $1,677
Rhode Island: $1,629
State senators and Assembly members are right to convene a special session to tackle the state's biggest issue -- property taxes.
The New Jersey Legislature finally appears ready to devote its full attention to rising property taxes.
It's about time.
Top lawmakers in
For years, residents have begged for relief from constantly rising property taxes. And many older residents, even those with their mortgages paid off, have long been forced to sell their homes and leave the state because of its ridiculously high property taxes.
It's encouraging that lawmakers have finally faced the problem and decided to act.
That said, the special session of the state Senate and Assembly must produce real, substantial results. If it yields little more than studies and blue ribbon panels that never actually bring change, or Band-Aid solutions such as slightly increased rebate checks, then lawmakers will have failed and voters would be right to boot them out in the next election.
Committee targets
The Legislature's goals must be to not only figure out a way to stop the annual property tax hikes that all New Jersey homeowners face, but also to find new ways to fund public schools, the biggest factor in property taxes, and to make New Jersey's oversized, overpriced government less costly to taxpayers.
To that end, six-member committees of senators and Assembly members will be formed to focus on these four issues:
Whether
Ending alleged abuses in the pension system for public employees. These abuses cost state and local governments billions of dollars each year.
How to make it easier for local governments to consolidate and share services such as regionalized police departments or school superintendents who manage several districts.
What changes in the state constitution are needed to change how taxes are collected, whether the state needs to shift more emphasis to income and sales taxes and whether there should be a convention to change the state constitution regarding taxes.
All four of these issues are critically important in any comprehensive effort to make New
We're particularly glad to see that lawmakers will pay special attention to ending pension abuses and working to consolidate government services.
The state's generous pension system allows retired government workers to live well on the backs of taxpayers. It is especially rewarding to those officials who cobble together several part-time public jobs to amass hefty pensions they can draw on after retiring at only age 55.
Whatever the committee finds, lawmakers must move to stop dual-office holders from boosting their pensions. Public employees should only be able to draw a pension from one of their jobs, logically, whichever government job they held when they retired.
As for the size of government, New Jersey has 566 municipalities, each with an elected government and various municipal departments; 616 independent school districts, many of which have just a few hundred kids and one or two schools; and 186 fire districts, of which there are often several in a single municipality. All of these 1,368 governmental units, along with the 21 county governments, rely on property taxes.
With so much government drawing on them, it's no wonder property taxes are higher here than in any other state.
When all federal, state and local taxes are combined, New Jerseyans face the third highest tax burden in the nation according to the Washington, D.C.-based Tax Foundation.
State legislators should be applauded for finally realizing it's time to do something about this. If they're not going to sign off on a constitutional convention (although they could still do so) then they owe it to us to dedicate a special session to what has become the single most important issue facing this state.
Message sent
In April, voters across
Other states offer good schools, police, fire departments and other government services to residents. And they do it far more cheaply than it's done here. It's time
Published: June 11. 2006 3:10AM
Will lawmaker promises reduce property taxes in '07?
June 11, 2006 published in Gannett newspapers
BY JONATHAN TAMARI
Instead, the architects of the latest plan to tackle the thorny issue, Senate President Richard J. Codey, D-Essex, and Assembly Speaker Joseph J. Roberts Jr., D-Camden, named stabilizing property taxes to prevent more rapid hikes as their most realistic short-term goal.
"We're going to enact a lot of good measures that will stem the tide," Codey said, promising "substantive progress" in holding down the "inflation rate" of property taxes, which have grown, on average, by 5 percent to 7 percent in recent years.
But what about reducing property taxes?
"I think that's possible, but it's hard," Codey said, adding that any real reduction would likely mean shifting the tax burden to other levies. "Under true property tax reform, some are going to pay less and some are going to pay more. Anyone who tells you anything else is Pinocchio."
Roberts, who when taking office as speaker in January named property tax reform his number one goal, said it would be hard before work begins to measure how far lawmakers will get.
"The first thing is we have to stop the bleeding and provide some stability," Roberts said.
Roberts said reforming school funding and public employee pensions, two topics on the agenda for the summer that he hopes to have action on by year's end, could have "a significant immediate impact on property taxes."
But he also made it clear in an interview that he believes a constitutional convention with citizen delegates is still part of the long-term answer for property tax cuts. It could be three years before a convention produces results, although Gov. Jon S. Corzine has hinted at speeding up the process.
Republicans, however, said their polling shows that residents want to see their property taxes cut in half — and fast. In 2005, homeowners paid $5,900 in property taxes, on average, according to the Department of Community Affairs, a $400 increase from 2004. That's about 7 percent.
"If there's no significant reduction in property taxes, (Democrats) will have a significant reduction in their majority. If nothing is done, it's clearly on their watch," said Assemblyman Kevin J. O'Toole, R-Essex.
Two years ago, the convention plan was the subject of an exercise similar to the one Codey and Roberts are now planning. Lawmakers called special meetings, producing much thoughtful discussion. Then when it came time to count the votes, the plan fizzled.
Several people involved in the 2004 task force believe results will be different this time around, citing a changed political climate amid growing signs of voter outrage and new cooperation on this issue between Codey and Roberts.
"For the first time in my 32 years (in Trenton) I saw the two most powerful legislative leaders as one stand up and declare war on property taxes," said William Dressel Jr., executive director of the New Jersey State League of Municipalities.
Roberts has ushered the convention plan through the Assembly twice only to see it fail both times in the Senate, leading some mayors and reform advocates to blame Codey for delaying reform.
Sen. John Adler, D-Camden, who sat on the convention task force, said the agenda laid out for the bicameral, bipartisan committees meeting this summer will get to the substance of tax issues. The convention task force focused on the process of reform, he said, while the latest plan calls for meetings to address topics such as school funding, pension reform, consolidating government and, yes, a constitutional convention.
"We're now actually focusing on doing something, which is what we were elected to do," Adler said. "I am much more optimistic now than I have been at any time in the past 15 years."
Roberts pointed out that this summer's meetings will address government spending and involve lawmakers directly. Critics of previous plans, including Codey, have argued that government expenses need to be part of the focus.
Roberts and Adler both said Corzine's influence, after he made property tax reforms a highlight of his 2005 election campaign, also changes the political calculus.
"If the governor puts his or her weight behind something, it dramatically raises the prospects of getting it done," Roberts said.
But Senate Minority Leader Leonard Lance, R-Hunterdon, who also participated in the 2004 convention planning, doubted whether this latest attempt at reform will have any better results. Lance said "fundamental" property tax reform will require a constitutional amendment to limit government spending.
"What has been missing is fiscal discipline," Lance said. "I believe that can only be achieved through a constitutional convention."
Lance rejected the idea of shifting the burden from property taxes to other taxes, citing a series of sales and income tax hikes in the past that failed to accomplish that goal.
Former Sen. William Schluter, R-Hunterdon, has fought for a convention with citizen delegates since 2000, saying he doesn't believe elected officials have the political guts to enact true reforms themselves. He is optimistic about lawmakers' latest efforts, but not because he expects lower taxes.
Instead, he said that once the planned hearings fail, lawmakers will have no choice but to turn to the convention.
"I would love for them to succeed, but I don't think the chemistry and the dynamic is right," Schluter said.
He was encouraged, however, by Codey's involvement.
"At least now I think there has been a recognition that this is the number one thing on the people's mind in the state of
Jonathan Tamari: jtamari@gannett.com
Turn up heat on legislators
Posted by the Asbury Park Press on 06/11/06
State lawmakers from both sides of the aisle have been sounding lately like they actually intend to do something about escalating property taxes. The first test of their sincerity will come in the next few weeks, when they vote on a new budget. Gov. Corzine's proposed $30.9 billion spending plan is nearly 10 percent higher than this year's.
Corzine's budget includes a 1-cent increase in the sales tax, a $50-a-day tax on hospital beds, another steep hike in the cigarette tax, a new tax on water, increased levies on wine, beer and liquor, realty transfer taxes on the sale of commercial property and a 2.5 percent corporate tax surcharge.
Democrats and Republicans alike have attacked almost all of the proposed tax increases. Will they have a change of heart when it comes time to vote? Only if you let them. If you haven't made your views on the proposed tax increases known to legislators yet, do it now. And if you've already given them an earful, shout in the other ear. The Opinion section of our Web site, www.app.com/opinion, provides e-mail links to all local legislators, as well as their phone numbers and addresses.
Legislators' next sincerity test will come this summer, when they are expected to meet in special session to address property taxes. The Democratic leadership has promised the session will produce concrete action by the end of the year. There is ample reason for skepticism, beginning with the Democratic Party's consistent record of inaction on property tax relief over the past five years.
Beyond that, the agenda for the session spelled out by Assembly Speaker Joseph J. Roberts Jr., D-Camden, and Senate President Richard J. Codey, D-Essex, is limited to four areas — school funding, public employee benefits, shared services and whether to have a constitutional convention. Corzine says he would like to broaden the agenda to include civil service reform and authorization of an independent elected state comptroller. Both are essential to property tax relief.
There is no mystery about what needs to be done to reduce property taxes. Spending at all levels of government must be reduced. That can only be accomplished by bringing the salaries and benefits of all public employees — not just state workers — under control and by changing laws that have interfered with the ability of government to create flexible organizational structures that allow it to adapt to changing times and circumstances.
Most legislators know exactly what needs to be done to make
Is this the year it will happen? The climate is right. Voters and taxpayers are angry. Legislators, all of whom face re-election next year, are feeling the heat. In the interest of self-preservation, they may finally feel compelled to act — particularly if you start turning up the heat.
Legislators considering professional services tax
Sunday, June 11, 2006
By JOHN P. McALPIN
Lawmakers trying to kill a proposed increase in the state sales tax are exploring the idea of taxing fees charged by lawyers, accountants, consultants and other professionals, several legislative sources said.
With less than three weeks to go before their constitutional deadline, lawmakers are searching for options to scale back Governor Corzine's $1.8 billion in tax increases, most of which would come from a one-cent hike in the sales tax.
A tax on professional services is one of several options being reviewed, legislative sources said, although it would face several significant practical and political hurdles.
Corzine's call to raise the sales tax to bring in another $1.1 billion is still troubling for many lawmakers, led by Assembly Democrats. Despite some public support for the sales tax increase, some Democrats remain wary of a political backlash.
Raising the sales tax to balance the budget would make it more difficult to consider a sales tax hike as an option for lowering property taxes, something that may be explored during an upcoming special legislative session.
"There are remaining serious concerns whether a sales tax is the way to go," Assembly Speaker Joseph Roberts, D-Camden, said last week.
Scrapping Corzine's broader plan to raise the tax -- from 6 cents to 7 cents on every dollar of most consumer item purchases -- would mean lawmakers must find other ways to raise $1.1 billion, and fast. The state constitution imposes a deadline, requiring that a balanced budget must be signed into law by midnight June 30.
That deadline has forced members of the Legislature to take another look at alternatives, including some that have been rejected before. A professional services tax is one of them. Former Gov. Richard Codey considered such a tax as part of his budget proposal last year.
Lawmakers are now discussing whether to charge lawyers, accountants and other professionals the current 6 percent sales tax for services rendered. Doctors and other medical services would be exempted, the sources said, speaking on condition of anonymity.
Lawmakers are unsure how much money the tax would raise. "They're trying to verify the numbers," said one member of the Assembly.
One obstacle is the political clout of lawyers, whose $4 million in contributions made them the fourth-largest donor group to legislative races in 2003. The legal community also has a built-in audience in
The state's highly organized and politically powerful business lobby also is ready to fight the plan if it survives these early discussion stages.
"We would absolutely oppose an expansion of taxes to services," said Arthur Maurice, vice president of the New Jersey Business and Industry Association, which represents 23,000 businesses. "We think it would be really counterproductive to the direction Corzine, Codey and Roberts have laid out in terms of growing the economy."
Legal and practical hurdles also loom. Some fear that professionals would avoid the tax by incorporating their businesses in neighboring states while setting up shop in
Senate and Assembly leaders are planning to meet this week to revisit budget issues, including the sales tax increase.
Senate Democrats, while not offering complete public support, have edged closer in recent weeks to backing the sales tax increase. But Democrats who control the Assembly have focused on cuts in services and programs, as well as alternative revenues, legislative sources said.
Corzine is open to options that would avoid the sales tax increase, but those options must be economically sound, spokesman Anthony Coley said.
"The governor took no joy in putting forth a one-cent increase in a sales tax," Coley said. "The governor said in his budget address that he was looking for alternatives that were as fair and far-reaching as he put forth in his budget."
Lawmakers familiar with budget negotiations say the plan to charge a new tax on hospital stays is likely gone.
Corzine had asked for a tax on hospital beds to raise $430 million, which would include federal matching funds. Legislative sources say they are prepared to find other mechanisms to collect the matching funds and avoid the hospital tax.
A proposed tax on water use – 4 cents a month for individuals – is expected to raise $12 million for the Corzine budget. Lawmakers say they have not yet found enough money through cuts and other revenues to avoid that water tax, but one source said it's "likely" the revenue will not be included in the final budget.
E-mail: mcalpin@northjersey.com
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Facing up to property tax challenge SEEING will be believing. The New Jersey Legislature is going to spend the summer studying how to cut residential property taxes, among the highest in the nation. The leaders of the Assembly and Senate have agreed to do it. They predict action by the end of the year. Governor Corzine is supportive. The leaders and the governor are all Democrats, but they plan to include Republican legislators in the strategizing. So, sounds promising, right? If they really want to take decisive action, they can. They have that much power. They could consolidate the 600 school districts into 21, one for each county, if that would help. They could impose effective limits on collective bargaining for school and municipal employees. They could enact a new, statewide property tax on estate and beachfront homes, to benefit working- and middle-class school districts. Trouble is, any significant action will inspire determined opposition, and an action that isn't significant won't accomplish much. In the former category is the demand by a South Jersey senator, Stephen Sweeney of Other Democrats rejected the idea out of hand, with Corzine saying Seems to me that's a reasonable, money-saving idea. New employees would know up-front what they were getting into. Corporate employers and their unions commonly reach such agreements these days. But the School districts without schools Less persuasive is the case for municipal and school-district consolidation, although it would seem to make intuitive sense. Consider two examples: school districts that have no schools, and pairs of towns in which one completely encloses the other. Two years ago Jim McGreevey, then governor, used his State of the State address to advocate abolition of school-less school districts. On the face of it, he seemed to have an open-and-shut case. What purpose could they serve? There were 23 such districts in the state. Two were in North Jersey, both in Teterboro was built from the start to be an industrial tax haven, centered on What this involves chiefly is some bookkeeping. In Teterboro the person who handled these chores as school board secretary also served as tax assessor and health board secretary, for a total salary of $40,000. I didn't see much opportunity for savings there. Same in Rockleigh, where all the school chores were handled by a part-time employee. Hole-and-doughnut pairs of towns As for hole-and-doughnut town pairs, of which Borough and township had separate governing bodies, police departments and zoning boards, but they had merged a surprising number of other services. The schools, for example. There was one unified public school district for both. Also, there was one volunteer fire department, one municipal library, one planning board, one health department, one recreation department and one parking authority. But efforts to close the remaining gap failed repeatedly. Six times, regionalization proposals were defeated at referendum. In the last five efforts, voters in the township were willing, but not in the borough. Why this was so was debated, but there was no disputing that, left to their own devices, Princeton Borough and Theoretically, the Legislature and governor could order an end to such separatism, statewide, in the cause of efficiency. But they are most unlikely to do so. They would encounter immediate, forceful, heartfelt opposition. They know this. They will not risk their political lives for speculative, probably marginal returns. James Ahearn is former managing editor of The Record. Send comments about this column to oped@northjersey.com. |
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NEW YORK TIMES, Sunday 6-11-06
High Taxes Are Bad; Being Outvoted Is Worse
Skip to next paragraphIn the Region
Long Island,
Call it a case of revising taxation with uneven representation.
First, the taxation: Last week,
And the representation: Even as the public and legislators applauded the spirit behind the move, Republicans and Democrats remained split late last week on how many members of each party would sit on the committees leading the effort.
Under the current plan, the six-member committees — which will consider issues like the state's school financing formula and consolidating municipalities — will consist of four Democrats and two Republicans.
The Legislature's two ranking lawmakers, Assembly Speaker Joseph J. Roberts Jr. and Senate President Richard J. Codey, said that composition reflected their party's majority in both houses of the 120-member Legislature. Democrats hold a two-seat edge in the Senate and a nine-seat advantage in the Assembly.
But almost immediately Republicans began demanding an equal number of seats on the committees.
It is highly unlikely that the current makeup of the committees will change, though; their composition is at the discretion of the majority party. Still, Republicans, citing an urgency among their constituents for dealing with property taxes, said that would not prevent them from lending their voices.
"We're ready to be included in the process," said Assemblyman Alex DeCroce, the minority leader from
And perhaps because he read that insistence by the public for action — and maybe even had a little bit of inside information, too — Mr. DeCroce can be counted among the legislators who will not have to alter their vacation plans for the rare summer session. "I didn't plan anything," Mr. DeCroce said. "I knew this might be coming." RICHARD G. JONES
Tax questions cloud budget debates
Posted by the Asbury Park Press on 06/11/06
THE ASSOCIATED PRESS
When it comes to the state income tax, that question could prove vital as the state's July 1 deadline to approve a budget nears.
Gov. Corzine is proposing raising the sales tax to deal with the state's $5 billion budget deficit. But some Democrats have questions about the fairness of the increase, sparking debate about whether
Some Democrats say Corzine's sales tax increase — from 6 percent to 7 percent — is unfair because it affects lower-income people more than those in higher-income brackets.
"There remains serious concern about whether the sales tax increase is the way to go," said Assembly Speaker Joseph J. Roberts Jr., D-Camden.
None of the Democrats, including Roberts, have said publicly that they want to increase the income tax, but it doesn't appear likely at this time that the sales tax has enough votes to pass the Legislature.
The Corzine administration has steadfastly held to a sales tax increase, saying that the state is already too dependent on the income tax. Although the income tax pays for about $1 of $3 in state spending, 42 percent of the state income taxes are paid by just 1 percent of the tax filers.
"That's a scary one for us," said state Treasurer Bradley Abelow. "There is an enormous amount of risk."
Richard Kaluzny, the assistant state taxation director, estimated 25 percent of the income taxes paid by the richest taxpayers comes from capital gains, business income, partnerships and stock options. He said about $1 billion collected annually from income taxes comes from capital gains.
The Corzine administration has repeatedly expressed worries that an income tax increase could send the easily mobile wealthy running out of state.
The last time the state raised the income tax was in 2004, and before that in 1990.
Though figures remain incomplete, the state estimates it had 33,330 filers in 2004 who earned at least $500,000 per year, and 37,300 last year. That's an increase from 2002, when the state had 25,500 such income tax filers, and 2003, when it had 26,900 income tax filers earning that much.
"If that pool keeps growing and we keep getting the dollars from that pool, then it belies the fact that that is a vulnerable pool," Sen. Wayne Bryant, D-Camden, the Senate budget committee chairman, said during a recent legislative debate.
Abelow was cautious about drawing any conclusions from the data, contending many taxpayers earn more money annually and grow into increased earnings brackets.
The idea hasn't garnered too much support with Republicans, either. Senate Minority Leader Leonard Lance, R-Hunterdon, said the state recently hasn't collected as much income tax as it expected, leading to some of the recent budget woes. For instance, the state expects to collect $11.4 billion through income taxes this fiscal year, but that's $345 million less than had been projected.
"I am concerned regarding that source of revenue, particularly given the volatility of the income tax," Lance said.
Assemblyman Joseph R. Malone III, R-Burlington, called the degree to which the state relies on 1 percent of its income taxpayers a "scary fact."
"That is not the most stable tax base to take a look at and shape our future," Malone said. "If things go in the tank again, we can have serious problems."
And not all Democrats have problems with the sales tax increase. Senate President Richard J. Codey, D-Essex, noted polls show people support a sales tax increase over an income tax hike.
Corzine said he's heard no complaints about a sales tax increase at public hearings he's held on the budget, although some legislators say their constituents have not been pleased.
Senate Democrats met on Monday to discuss budget ideas. They focused on spending cuts and other options, such as taking $84 million from an urban redevelopment fund, but Codey said no decisions were made.
June 10 2006 Star Ledger
NAACP assails Corzine plan to audit poor school districts
Saturday, June 10, 2006
BY JEFF WHELAN
Star-Ledger Staff
The state president of the NAACP harshly criticized Gov. Jon Corzine yesterday, questioning whether his administration was engaging in "racial profiling" by calling for audits of poor school districts that receive billions of dollars in state aid.
James Harris, who previously compared Corzine to white Southern governors who fought integration in the 1960s, made his remarks after attending a breakfast Corzine hosted for about 250 black leaders at the governor's mansion in
Harris also called Corzine's proposed freeze in state aid for poor school districts "a step backward" and a "very large disappointment for civil rights" in the state.
"He's painting a picture that the money going to the (poor school districts) seem to be mismanaged and not well spent," Harris said during a news conference at the
The Corzine administration is conducting audits of school districts in
"The NAACP wonders if that's not racial profiling," Harris said.
Anthony Coley, the governor's press secretary, noted that Corzine recently signed legislation providing stricter state oversight of school districts statewide.
"The governor wants to make sure we spend money appropriately and wisely. And that's what people in urban areas, as well as people in other areas across the state, want him to do," Coley said.
He also said poor school districts would receive the bulk of direct school aid from the state under the governor's proposed budget. Under that plan, now under review by lawmakers, the state would provide $4.25 billion to the 31 "Special Needs" districts covered by state Supreme Court school funding rulings, and New Jersey's other 564 school districts would share $3.13 billion.
Facing a budget crisis, the governor sought and won approval from the state Supreme Court last month to freeze funding for the poor districts at last year's levels. The poor districts want a $500 million funding increase. Other districts have already had their funding virtually frozen in recent years.
Corzine showed up for court proceedings in that case, which prompted Harris to liken him to southern governors who physically blocked black students' entry into public schools despite court orders in the 1960s.
Coley yesterday said of Harris' most recent remarks: "Thoughtful discussions not hastily arranged press conferences ... are the most appropriate ways to achieve one's desired results."
Assembly Majority Leader Bonnie Watson Coleman (D-Mercer), who also attended the breakfast, called Harris' remark about racial profiling "unfair."
"It's a tough time. We've got suburban school districts that have been flat funded for five years," she said. "There are some school districts that are getting much more of their funding from the state and the state taxpayers. The governor has a right to look wherever he wants."
Trenton
Asking for a miracle
Friday, June 09, 2006
So here's the plan.
The Assembly and Senate will return to the State House in July for a summer session on property-tax reform. Then, three joint committees will study some of the major forces driving up property taxes: school spending, public employee benefits and excessive government duplication. A fourth committee will prepare the "groundwork" for a citizens' tax-reform convention. By Sept. 30, the committees will develop proposals on which the Legislature will act by the end of 2006.
That's how Senate President Richard Codey, D-West Orange, and Assembly Speaker Joe Roberts, D-Brooklawn, see it all unfolding.
Sound good? Well, don't hold your breath waiting for your property taxes to drop. History predicts that the special session will produce few if any meaningful results.
For more than 40 years, the Legislature has shown itself to be incapable of taking the tough steps needed to permanently lower the nation's highest per-capita property taxes. Ignoring the recommendations of one blue-ribbon study panel after another, the lawmakers consistently have bowed to the special interests that provide money and support at election time and that have a major stake in the status quo.
Sen. Codey and Speaker Roberts have further stacked the deck against success by putting twice as many Democrats as Republicans on the joint committees. The special session they are calling for has a serious and specific purpose. If they are serious themselves, they will throw aside custom, assign the Republicans equal representation, and thereby invite the bipartisanship that will be essential if anything is to be accomplished.
Many observers, this newspaper included, have advocated a citizens' convention made up of delegates elected for the sole purpose of drafting a comprehensive tax-reform plan for submission to the people for an up or down vote. Gov. Jon Corzine ran for office on the pledge to work for such a convention. The Assembly speaker and Senate president have thrown a bone to the advocates by suggesting that, if the Legislature fails to deliver, they will allow a referendum in November 2007 on whether to hold a convention in 2008 to draft a plan which, if approved by the voters, would take effect in 2009.
That's much too long for
It appears, however, that the legislative leaders have no intention of putting their members who will run for re-election in 2007 in the position of having to take a yes-or-no stand on what would inevitably be a highly controversial set of revenue proposals by the convention. And so -- barring an absolute miracle in the special session -- real tax reform will be postponed yet again.
© 2006 The Times of
Rural school districts await funding formula
By DIANE D'AMICO Education Writer, (609) 272-7241
Published: Thursday, June 8, 2006
Updated: Thursday, June 8, 2006
TRENTON — Sixteen poor, rural school districts that filed a lawsuit in 1997 to get more state aid, may have to wait, instead, for a new state funding formula.
Acting Education Commissioner Lucille Davy has filed a report with the state Board of Education saying that the grievances of the districts would best be resolved by “the creation and implementation of a new school-funding formula.”
Davy wrote in the May 26 report that since Gov. Jon S. Corzine has made clear his intention to institute a new formula that funds students based on needs and not geography, the state board's concerns about the failures of the current formula to meet the needs of the small, poor, rural schools will be addressed. The state board acknowledged receipt of the report at its meeting Wednesday and referred it to its legal committee without comment.
Attorney Frederick Jacob, who represents the 16 rural districts was angry and disappointed.
“This is a slap in the face to the districts I represent,” he said. “There is no recommendation at all for any new funding. It just makes us wait along with everyone else.”
Jacob said he is very concerned that his small districts will end up no better off under a new funding system than they are under the current system, known as CEIFA, or under the Abbott vs. Burke court rulings that benefited only large, urban, districts. He said the influence of politics is bound to play a role in a new formula, and the 16 small districts have little political influence statewide.
“Any new formula may be just as unfair to us,” he said.
Jacob has already filed a motion with the appellate court and plans to ask the state Supreme Court to intervene. But he cannot do that until the state attorney general's office files its brief with the appellate court.
Meanwhile the districts struggle. Many had their budgets defeated by voters in April and made additional cuts.
“We've waited eight years for this,” said a disappointed Diane DeGiacomo, superintendent of Buena Regional. “I certainly don't disagree that we need a new funding formula, but I am very disappointed that our immediate needs were not considered.”
The original lawsuit was filed in 1997 by 17 districts that claimed they had the same needs as the urban districts in the Abbott vs. Burke case. After hearings, an administrative law judge recommended that five districts — Buena Regional,
The districts appealed, and the state board agreed in January that their needs were not met. The board directed Davy to prepare a needs-assessment plan for the districts, but Davy instead suggested waiting for the new formula. Her report said reviews by the county superintendents had shown that the districts were providing the state-mandated “thorough and efficient” education within their existing budgets.
The districts maintain they have the same needs as the 31 urban Abbott districts and should get additional state aid.
The state Legislature has committed to addressing school funding as part of a special session this summer. The special session will include four committees, one devoted to school funding.
The other districts in the lawsuit are Clayton,
To e-mail Diane D'Amico at The Press:
DDamico@pressofac.com
Schools await outcome of Corzine's funding formula
Thursday, June 08, 2006
BY JOHN MOONEY
Star-Ledger Staff
A key school funding case involving a half-dozen poor
The state Board of Education, this winter, requested acting Education Commissioner Lucille Davy to address funding and program inequities in eight rural districts, including Buena Regional, Woodbine and
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In a case known as Bacon v. N.J. State Department of Education, the districts sought to be included in the reforms ordered under the Abbott v. Burke school equity case, including mandated funding for preschool, construction and other programs.
The board sided with the districts but said, in a strongly worded opinion in January, that the state needed to devise a system that would address the districts' specific program needs and move beyond just providing additional funds.
But in a response released yesterday, Davy asked the board that such a proposal wait for the broader work starting this summer to devise a new statewide funding formula for all schools.
Gov. John Corzine and legislative leaders have all said a new funding formula would be part of a wide-ranging package of reforms to address escalating property taxes.
"In the context of funding and property tax relief, everything is on the table," Davy wrote the board. "The new administration has made clear its commitment to equitable school funding, and the needs of the Bacon districts as well as others will be addressed in that process."
The board yesterday referred Davy's request back to its legal committee, with the main question being whether the board will want to hold out for the Herculean task that lays ahead in devising a new statewide formula.
"The sooner the better always, especially because you don't know what will happen," said board member John Griffith, who serves on the legal committee.
"I think what the commissioner is talking about may be a better process," he said, "but you don't want it to go too long. ... You don't want it to get too stale."
