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NEWSFLASH - The four special committees are scheduled to meet Monday and Tuesday to formally adopt their reports and accept amendments or additions from Republican committee members. In the meantime, staffers in the nonpartisan Office of Legislative Services have already begun reducing many of the 98 recommendations presented yesterday to formal bills. IF YOU CAN, PLAN TO ATTEND -LET US KNOW IF YOU CAN BE THERE - email us at gscs2000@gmail.com Joint Leg. Com. on Gov't Consolidation & Shared Services Monday, November 20, 2006 - 10:00 AM Meeting - Committee Room 11, 4th Floor, State House Annex, Trenton, New Jersey The committee will meet to consider its final report. Joint Leg.Com. on Con.Reform & Cit. Prop.Tax Con. Convention Tuesday, November 21, 2006 - 11:00 AM Meeting - Committee Room 11, 4th Floor, State House Annex, Trenton, NJ The committee will meet to consider its final report.
The Joint Legislative Committee on Public School Funding Reform, originally scheduled to meet on Monday, November 20, 2006 at 2:00 PM, will be rescheduled to meet on Monday, November 27, 2006 to consider its final report.
Schools want details on merging
Posted by the Asbury Park Press on 11/17/06
BY JANEEN JONES AND LAUREN O. KIDD
STAFF WRITERS
Officials in the Shore area who are involved with education are eager for details on a proposal to create a countywide school system in one
Legislation for the pilot program, proposed by the joint legislative committee on Government Consolidation and Shared Services, still must be approved by state lawmakers. Which county would participate has yet to be determined.
"The concept is good," said Bruce Greenfield, superintendent of schools for
Governance is a key issue that must be addressed before such a system could go into effect, said Lester W. Richens, superintendent of the Belmar school district. He said questions such as who would be members of a county board of education, and whether they would be appointed or elected, must be answered.
The proposal is included in the 561 pages of recommendations lawmakers hope will ease
County freeholders and the county superintendent of schools would have to approve a county's participation in the school consolidation pilot program, according to the report.
Three of the state's most densely populated counties —
State Sen. Ellen Karcher, D-Monmouth, said that because of Monmouth County's Abbott districts and its regional school districts, the pilot program would not work there. Overall, Karcher said she thinks the pilot program will be helpful in finding out exactly what will and won't work under a countywide district.
But many residents don't want to lose their schools' community feel in an effort to save money, Karcher said.
Thomas Seidenberger, Brick's superintendent of schools, said he would "reserve final judgment" until all details are released, but he said, "I believe in local control."
Seidenberger said he turned down a superintendent's job in the
Seidenberger said consolidated districts "quickly can become monolithic institutions."
Joseph Ferraina, superintendent of the
"When you make it a smaller setting, it makes it personal," he said.
Lynn Maher, spokeswoman for the New Jersey Education Association, said the union believes consolidation efforts should be voluntary. Municipalities and school districts "shouldn't be forced to do that," she said.
New Jerseyans like their local schools, Maher said, and they probably "are not eager and not willing to give their control to county superintendents."
"It becomes a political football because people don't want to give up local control," said Belmar's Richens.
While Richens said he thinks consolidation could save money in some areas, such as the salary of one superintendent and one business administrator for the entire county, the savings might be reduced because of transportation and support staff costs needed in a consolidation, he said.
State Sen. Joseph M. Kyrillos Jr., R-Monmouth, said recommendations need to go further than a countywide pilot program. It's fine to have a pilot process, but there needs to be more, he said.
Kyrillos, a member of the committee that released the recommendation, said he sponsored a bill that would regionalize the finances of school districts, such as transportation costs, but leave the academics to each of the local districts.
Lauren O. Kidd: lkidd@app.com or (732) 557-5759
State's CEO lays down a dose of fiscal reality
Friday, November 17, 2006
Gov. Jon Corzine spoiled another party yesterday by insisting that his fellow Democrats stop spending money they don't have.
The governor was in
His message came down to this: Show me the money.
The governor put it more delicately. But he was again slapping the hands of legislators who were reaching for the punchbowl before the hard work was done.
"I can't support short-term fixes," he said. "Our situation is no different than that of a corporation operating in or near bankruptcy."
He warned against handing out benefits that would have to be taken back in a year or two. He said a "move backward" on fiscal discipline would be a "big mistake."
Sobering words. But there is no denying the facts behind them.
Democratic leaders in the Legislature have promised to deliver their tax relief just in time for next year's election. The problem is they haven't told us how they intend to pay for it.
The governor spoke in a hotel ballroom packed with hundreds of people.
But his real audience was the man sitting next to him, Assembly Speaker Joe Roberts, along with Senate President Richard Codey, who was not there.
The odd thing is that neither man seemed to get the message. Or at least they pretended not to.
"I'm fine with it," Codey said later.
Roberts huddled with aides in a hotel hallway for a few minutes before offering this: "It was a terrific speech. I'd give him an 'A' for sure."
Roberts and the governor ate lunch next to one another on the dais yesterday, whispering and sharing a few laughs. But don't get the idea these two are pals.
Their battle over the budget last summer forced a government shutdown.
They were pretending to be allies then, too, almost until the end. It was pure theater. In this fight, the stakes are even higher. Democrats know that if they fail to deliver on property taxes their slim majority in the Senate could disappear next year.
That would give Republicans veto power over Corzine's appointments and budgets, changing everything in
Sen. Leonard Lance, the Republican leader, made the obvious point that any property tax relief Democrats offer before next year's election will evaporate soon afterward if the Legislature doesn't do better.
He sees our Wall Street governor as a needed restraint on the Democrats in the Legislature, and he saw the speech yesterday as vindication.
"Obviously, the governor agrees with me," Lance said.
Among the 98 reforms in the Democratic package, there is much to like. They are talking tough on spending caps for schools and local governments. They are relucantly going along with Corzine's insistence on a state comptroller to root out waste. They are finally moving to end the worst of the pension abuses, and pushing to consolidate schools and towns. All that will help.
But it will not finance the 20 percent credit Democrats are promising. If you ask 10 Democrats where they hope to get that money, they give you 10 different answers.
Ask Roberts, and he acts like a game-show host with a hidden prize behind a curtain. He won't even say how much his plan would cost.
"That's not something I can describe right now," he said after the governor's speech. Maybe Democrats will find a way to honestly cover the cost. But it's more likely they will revert to form, and do something like sell the Turnpike to cover this new spending, leaving the state's crushing debt burden in place.
That would put Corzine in a tough spot. Would he veto a plan, even a shoddy one, that offers voters relief during an election year?
Not likely. Roberts and Codey, no doubt, have thought of that.
Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823.
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ATLANTIC CITY - Gov. Corzine yesterday praised New Jersey legislators for their more-than-three-month effort to overhaul the nation's highest property taxes, but warned that their work was far from over. During an address at the New Jersey League of Municipalities annual conference, Corzine told a hotel ballroom packed with local and state officials that he supported many of the nearly 100 recommendations issued by four special legislative committees on Wednesday. But he said some of the measures were not strong enough, and that others needed to be considered. And he questioned the sustainability of a 20 percent cut in property taxes that Democratic legislative leaders have pledged to deliver to most households. "Let me be clear, I am pleased by what I have seen so far," Corzine said. But he cautioned: "The process isn't over." "We are simply entering the next and probably more difficult phase of the process," he said. "The details, those all so troublesome details, must now be addressed." Under a timetable set at the beginning of the special session this summer, Corzine and legislators have until year's end to enact changes into law. And if state leaders want to solve the property-tax problem once and for all, the governor said, they need to step away from the softball approach of years past. "The more risk we take in the final product, the more likely we are to bring actual, lasting and beneficial change," Corzine said. "Bold, bold, bold action in both relief and reform is what we need." Lawmakers have proposed providing immediate relief by giving most households - which now pay an average of $6,000 in annual property taxes - a 20 percent credit on their tax bill. The credits would be based on income, with those struggling the most under the property-tax burden getting the most help. But no one would lose any state tax help they are now getting. For example, a senior citizen whose current $1,200 rebate check represents more than a 20 percent tax reduction would continue to receive that full amount. In addition to the tax credits, lawmakers also have proposed a series of measures they hope will help reduce costs - and the property-tax burden - in the longer term. The proposals include rewriting the school-aid formula to increase state funding to middle-class districts that have long complained of getting shortchanged; reducing pension and benefits for new public employees; and creating a commission that would study and recommend town mergers and shared services. Corzine said lawmakers needed to "think more aggressively." Under the legislative proposal, towns targeted by the commission studying mergers would get the final say on a merger with a vote. Corzine said such a commission needed "real power with real deadlines and real accountability for producing results." He said the state needed to earmark funds to be used as incentives to get local governments and school districts to share services. Corzine further entreated lawmakers to provide local officials with new ways of raising revenue to lower the property-tax burden, though he emphasized that he was not proposing any new taxes. Instead, he suggested impact fees, which developers pay towns to offset the costs of increased population. True change, Corzine warned, would not come without adversity. Interest groups, he pointed out, were lining up to defend the status quo. State unions are gearing up for a massive lunchtime rally on Dec. 11, when both houses of the Legislature have planned to be in session. Corzine implored lawmakers to stand strong, and "make history." But he also warned them against making promises they can't keep, referring to the 20 percent tax credits. In order to provide that tax relief, and $700 million in proposed new state school aid, Democratic lawmakers have said they will need to come up with about $1 billion in new revenue annually. Assembly Speaker Joseph Roberts (D., "Providing relief and then retreating in a year or two because we don't have the money is neither desirable nor acceptable," he said. Roberts and Senate President Richard J. Codey (D., Essex) took Corzine's words in a positive light, citing his "support for the concept of a 20 percent property tax reduction." In a joint statement, the pair agreed that to provide a tax cut "that is not real or lasting" would be "a cruel hoax." "We all agree that property tax relief must not be a gimmick and must be funded through a responsibly sustainable program," the statement said. "We are committed to working with the Governor and his administration to ensure such an outcome." Meanwhile, some Republican lawmakers, who have questioned how the program would be funded over time, yesterday seized on the fact that the governor also had concerns. "We need a much greater analysis," said Senate Minority Leader Leonard Lance (R., Hunterdon). Others praised the governor for the same determination he displayed during the summer's budget showdown, when he fought lawmakers led by Roberts to win an unpopular one-penny sales-tax increase in the name of repairing the state's rocky finances. "You could feel his resolve. It was: 'We're gonna get this done,' " said Assemblyman Francis Blee (R., That resolve scared Bill Dressel, executive director of the League of Municipalities. Dressel, who opposes any effort to force towns to merge or share services, worried where Corzine's tough talk on consolidation issues would lead. "I certainly hope he has an open mind," Dressel said. Corzine Cites An excerpt from Gov. Corzine's speech yesterday at the annual League of Municipalities conference: Now, I started off this debate asking us to look to Albert Einstein for inspiration on problem-solving. We could sure use Albert's brain now. To guide us through this next phase, let me cite After a particularly tough loss a year ago - I think it may have been to 'Right now we're in a bad spot. We're in the middle of a forest. It's all dark, we can't see. Get an ax and start choppin'.' The Scarlet Knights are doing their chopping. Those of us in the public sector still have more choppin' to do, but we are closer to getting out of the forest than we've ever been. This is a moment we cannot let pass. We are all in this together. We must be bold. We must have courage. And we must put the focus on the common good over any special interests. If we do, we will make history and serve Text, as prepared for delivery, provided by the Governor's Office. ONLINE EXTRA To read the recommendations on property tax reform, go to http://go.philly.com/njtaxes Contact staff writer Jennifer Moroz at 609-989-8990 or jmoroz@phillynews.com. Inquirer staff writer Elisa Ung contributed to this article | |
Total state debt soars to a record $33 billion
Friday, November 17, 2006
BY DUNSTAN McNICHOL
Star-Ledger Staff
The annual state debt report shows taxpayers already face $2.9 billion in loan payments during the budget year that will start July 1, 2007 -- a tab at least $150 million above the amount in the current state budget.
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More borrowing is on the hori zon.
According to the report, another $11 billion in debt already has been authorized for items like highway construction and school building. Last month, the state bor rowed $600 million for school construction.
The debt total includes more than $8.5 billion borrowed to cover revenue shortfalls in annual state budgets over the past decade.
"The fact that so much of it is simply to plug holes is nothing short of unconscionable," said Sen. Leonard Lance (R-Hunterdon).
Five years ago, state debt stood at $15.2 billion, less than half the current total.
The $33 billion figure does not include money owed to the state pension systems because of years of skipped or partial payments, ac cumulated days off owed to state workers, certain short-term loans and other obligations that would push the total over $37 billion, or better than $4,000 for every state resident.
Rich Marino, an analyst for Standard & Poors rating services who monitors
"They're actually using money to buy things, compared to using debt for general fund operations," he said. "At least they've moved away from issuing long-term debt for operating expenses."
Since Gov. Jon Corzine took office in January, the largest addition to the state debt load was $1.8 billion to bankroll highway construction through the Transportation Trust Fund. Other major borrow ing last year paid for the state's open space preservation program and the school construction program.
Corzine, in a speech to government officials at the New Jersey League of Municipalities yesterday, said the state has made strides toward restoring fiscal order, but that the changes must continue.
"Anyone who thinks the status quo is working has a pretty high burden to show that the state's way of doing business is the most effective, efficient and fair way to operate," he said. "It certainly ap pears to be among the most expensive."
Corzine this year abandoned the practice of borrowing funds to cover $150 million in incentive grants awarded to businesses and made the largest payment into the pension funds in a decade.
He also is considering raising money to pay down the state's debt by selling or leasing operating rights to assets like the state lot tery, the New Jersey Turnpike or other assets. UBS Investment Bank, a consultant hired by the state last summer, yesterday submitted a report that said the investment climate is ripe for that type of deal.
The state debt report is scheduled to be presented to the State Commission on Capital Planning and Budgeting today.
State unions vow street fight to oppose changes
Thursday, November 16, 2006
BY TOM HESTER AND JOE DONOHUE
Star-Ledger Staff
If Gov. Jon Corzine and lawmakers want to know what
That's when the New Jersey Education Association intends to turn out thousands of teachers and school employees to show their displeasure with plans to change health and pension benefits. The NJEA is inviting other public employees -- state workers, firefighters and police officers -- to join it. Both houses of the Legislature plan voting sessions that day.
Even before the protest, Carla Katz, president of Local 1034 of the Communications Workers of America, the state's largest public employees union, plans to lead an army of lobbyists to the Statehouse and the hometown offices of legislators.
"We are gearing up for a fairly major multi-union fight," Katz said. "We have the political clout, the fi nances and the people to fight those recommendations with all the strength we have. We will be lobbying in the streets if we have to."
One of the four legislative committees studying ways to cut the nation's highest property taxes yesterday suggested changes including raising the retirement age, limiting some pension credits, and requiring contributions to health plans.
"In our view, the legislators are using public workers as political scapegoats and are trying to dic tate benefits currently under negotiation," Katz said. "We see this as an attack on the middle class."
Lynn Maher, spokeswoman for the 196,000-member teachers union, said a proposal to make public employees who retire after next year pay a premium on their health insurance could spark a mass retirement. She said 32,498 teachers and school employees -- nearly a quarter of the public school work force -- are eligible to retire by the end of June.
"We are getting many calls a day from members asking if they should retire because the Legislature is even talking about making changes to pensions and benefits," Maher said. "It would be very chaotic."
The New Jersey School Board Association, meanwhile, is leery of proposals to create "super" county superintendents of schools to oversee local school spending, make it difficult to raise school budgets and shift nonpartisan school board elections from April to the general election ballot in November.
"Teams of local school board members have started to arrange meetings with their legislators," said spokesman Frank Belluscio.
William G. Dressel, director of the New Jersey State League of Municipalities, said local government officials have questions about how a 20 percent property tax break would be funded and who would benefit, as well as a proposal for the creation of a state board to oversee municipal mergers.
"We will have to pull out all the stops and lobby very, very strenuously," Dressel said. "I see a lot of unanswered questions."
The league plans to have legislative leaders appear before mayors Dec. 12 in
Tax reform plan is roadkill
Thursday, November 16, 2006
During the past month I have run over two dead deer. One felt like it ripped the transmission out of my Honda, but the car and I somehow sur vived.
The state government is too broke to pick up dead animals on the roads, Gov. Jon Corzine tells us. But if we are to believe him and his fellow Democrats, that same state government seems to be awash in dough for property tax relief.
That was the only possible conclusion after the release of that property tax relief plan yesterday. It would require billions in new state spending. Where would the money come from? Nobody knows, or at least nobody who's talking. But the Republicans have a lot of questions.
"There was never any discussion of where they were going to raise the money," said Assemblyman Richard Merkt, a Morris County Republican who served on the bipartisan committee that was supposed to consider constitutional changes. "It was never discussed in my committee. We're like a ship that leaves port without the captain knowing where he's going."
Captain Corzine is expected to detail his plans today in
It's a lot of money, say Merkt and other Republicans. They esti mate that it would cost about $2 billion a year to fund those promised 20 percent tax cuts for "most" taxpayers. I put the word "most" in quotes because that language, which was being bandied about last week by Democrats touting the plan, didn't make it to the ver sion released yesterday. Now we're being told that the tax cuts would go not to the majority of taxpayers but to "as many as resources will allow."
Merkt has a guess as to how many of these lucky taxpayers will be in
"Most of the people in my home county would probably be ex cluded from any meaningful relief," he said. He and other Republicans speculated that the 20 percent tax break would be cut off at an annual income of $75,000 or $100,000. That would exclude many middle-class taxpayers not only in Morris but all over the state.
State Senate Minority Leader Leonard Lance said the GOP will fight efforts to restrict that 20 percent cut to lower-income taxpayers.
"I believe all residential taxpayers should get the 20 percent cut because we already have a steeply graduated income tax," said Lance.
This plan looks on the surface like an attempt to turn the property tax into another income tax. Like Merkt, Lance said he has no idea where Corzine is going to get the money to fund it. The Democrats have been insisting they face a $2 billion "structural" deficit in next year's budget even before these new costs were added.
But you can't blame a Democrat for dreaming. Tucked away in the report from the committee on school taxes was a proposal that would bust budgets for decades to come. Unbelievably, Democrats took advantage of what is ostensibly an effort to reduce property taxes by pushing an idea that would cause them to skyrocket: new preschools as well as full-day kindergarten.
The report calls for the extension of the state's preschool program for 3- and 4-year-olds, now operating only in the so-called "Ab bott" districts, to all schools in the A and B groupings. These are the two lowest ratings in the state's scale of school district wealth. About 78 such districts would get the new preschools, state officials say. The preschool tab just for the 31 Abbott districts approaches a half-billion dollars a year. So you can imagine what it would cost to extend preschool to 78 more districts. The plan would also create full-time kindergartens in every school in the state, another option for which no funding source was listed.
Where's all that money coming from? Len Connors has an idea.
"With the amount of spending they're talking about, they could never generate that kind of money without new revenues," said the Republican state senator from
Where's the money coming from? The roads. Along with deer, many human beings also use
Actually it was more like a lead balloon. But even if that idea falls flat, the administration will be going ahead with a plan to lease the Turnpike, Connors predicts. The $30 billion or so that would generate would permit Corzine to cover the $20 billion hole in the pension fund that makes up such a big part of the structural deficit.
Hmmm, fooling around with the pension fund? Sounds a lot like the stunt Christie Whitman pulled in 1997, said Connors.
"They're always going to have a structural deficit until they cut the size of government," he said.
That's not on the agenda. When it comes to property tax reform, these guys are like a deer in the headlights. Would somebody at least get the body out of the road?
Paul Mulshine is a Star-Ledger columnist. He may be reached at pmulshine@starledger.com.
