Gov. Chris Christie proposes 2.5 percent annual property tax cap in 33-bill package

Christie portrayed his reforms as a contrast to Democrats' budget priorities -- Read Democrats' dueling tax plan

Tony Kurdzuk/The Star-LedgerGovernor Chris Christie holds up a set of 33 bills at the State House this afternoon he called "Cap 2.5" putting a cap on property tax increases and state spending at 2 and 1/2 percent.

TRENTON -- TRENTON -- Gov. Chris Christie today proposed a series of reforms he said would give New Jerseyans more control over their own property taxes and local governments more tools to cut costs.

The 33-bill package is anchored by a constitutional amendment that would limit annual property tax hikes to 2.5 percent, except when local voters decide to override it.

Contract awards for public workers like police, firefighters and teachers -- including salaries, health benefits, vacation time and other perks -- also could not increase by more than 2.5 percent a year. Christie also wants to allow towns to opt out of civil service rules governing hiring and firing, place a $15,000 cap on unused sick leave for current public workers, and move school board elections from April to November.

The constitutional 2.5 percent property tax cap, modeled after a similar system in Massachusetts, would replace the current 4 percent cap law that Christie says has too many exceptions. Top Democrats who control the Legislature note that the current cap has helped bring annual increases to an average of 3.3 percent last year, down from the 7 percent range earlier this decade. They say wealthy towns would more often vote to override the new cap when they demand more services, exacerbating the divide between rich and poor.

At an animated news conference shortly after top lawmakers said they want to increase taxes on millionaires to help pay for programs for senior citizens, Christie portrayed his reforms as a contrast with Democrats' budget priorities.

"The people of New Jersey need to decide -- do they want to know for sure that their property taxes will increase no more than 2.5 percent a year, or do they want to engage in the game of Trenton roulette, where the amount of their increase depends on which slot the ball falls in, which special interest is going to be catered to, which tax they want to increase that particular year?" the Republican governor said. "I don't think the people of this state want roulette anymore."

He said the bills would "get at the root cause" of New Jersey's highest-in-the-nation property taxes.

Christie's proposals would require legislative approval. But Democrats were noncommittal today, saying they have not had enough time to examine the reforms.

"We have to do a complete analysis of the implication of these bills, and it is our position in the Assembly that we are not going to hastily react to a package of bills dropped on us during a period when we are examining other things with severe implication for all levels of government," said Assembly Speaker Sheila Oliver (D-Essex).

Senate President Stephen Sweeney (D-Gloucester) accused Christie of diverting attention from the budget by putting other issues out front, such as teacher salaries, state Supreme Court justices and now the municipal worker reforms.

"When people really start looking at the budget, they're not going to be real happy," he said. "He's done a real good job of keeping people away from paying attention to it."

Leaders of public worker unions said Christie's reforms would undermine employee rights and result in hiring decisions based on political patronage. They said they doubted voters would choose to override a property tax cap to pay for services, even emergency protection.

"If you're given a choice of whether you want to pay more or pay less, you're absolutely going to pay less," said Edward Brannigan, president of the the New Jersey Fraternal Order of Police, which represents 17,000 officers in about 200 municipalities. "We hope the Legislature is going to stand up to the governor and his strong-armed approach."

By Claire Heininger and Lisa Fleisher/Statehouse Bureau

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