N.J. lawmakers continue to shore up budget support, quickly pass alternative property tax cap

TRENTON — New Jersey’s divided state government struggled closer to finalizing a budget Thursday, while a controversial plan to tighten the cap on annual property tax increases sailed through its first hearing. As minority Republicans battled to keep votes lined up for GOP Gov. Chris Christie’s first budget, Democrats on the Senate budget committee gave quick approval to a...

TRENTON — New Jersey’s divided state government struggled closer to finalizing a budget Thursday, while a controversial plan to tighten the cap on annual property tax increases sailed through its first hearing.

As minority Republicans battled to keep votes lined up for GOP Gov. Chris Christie’s first budget, Democrats on the Senate budget committee gave quick approval to a 2.9 percent limit on property tax hikes, down from the current 4 percent. The plan, spearheaded by Senate President Stephen Sweeney (D-Gloucester), is a direct challenge to Christie’s own initiative for a constitutional cap at 2.5 percent.

"It’s a great sound byte," Sweeney said of Christie’s plan, but "a constitutional amendment would do nothing but harm New Jersey."

Republicans attempted to amend the bill to make it more resemble Christie’s cap, including removing exceptions for expenses like health care that the governor calls "Swiss cheese holes" that render it ineffective.

"It’s not enough. It will never be enough unless we put constitutional constraints on it," said Sen. Joseph Pennachio (R-Morris).

But the Republican changes were defeated, setting up a vote by the full Senate on Monday. The Assembly Budget Committee is expected to take up the cap bill (S-29) today.

The governor has declined to say whether he would sign Sweeney’s legislation, instead pressing lawmakers to allow a vote on his plan. But Sweeney Thursday said it may not get a hearing until over the summer. Christie’s plan faces a July 7 deadline to clear committees so it could be put on the November ballot.

Though it passed the main budget bill Wednesday, the Senate budget committee on Thursday continued to negotiate as it approved several related bills needed to implement the governor’s $29.4 billion budget.

With the budget compromise dependent on unanimous Republican support, Kean and Christie said they were confident the party would be unified in time for Monday’s final vote ahead of its July 1 deadline.

"Despite misgivings — and everyone has misgivings about one portion or another of this budget — I’ll have the Republican support I need to pass this budget," Christie said in a radio interview.

Sweeney, though, said Democrats wouldn’t budge off their pledge to provide the minimum number of votes. "This isn’t my problem, this is their problem," he said.

There was less confusion but still theatrics in the Assembly, where the budget committee Thursday approved the budget and several bills tied to it.

The committee voted 5-4, with Assemblyman Albert Coutinho (D-Essex) casting the lone Democratic vote that tipped the balance. "I’m going to extend my hand in bipartisanship so we can move this budget forward," said Coutinho, who added that voting for it is "not the best political move" considering his urban, heavily Democratic district.

Three Democrats who normally sit on the committee did not show up. The five who did attend traded off on being the only yes vote on the budget and its related bills.

Democrats tried to make Republicans take full responsibility for Christie’s cuts, and challenged them on the governor’s claim that he closed a $10.7 billion budget gap without any tax increases. In an interview, Assembly Budget Chairman Louis Greenwald (D-Camden) ticked off a list of items he said would raise taxes, such as removing a tax cap on hospital revenues, the 75 percent reduction in property tax rebates and the elimination of the $45 million earned income tax credit.

"You want to call them a loss of benefit, a fee increase? Call them what you want," Greenwald said. "When it’s money out of people’s pockets, it’s a tax increase."

But when Democrats brought that up during the hearing, it drew an angry response from Assemblyman Jay Webber (R-Morris), who accused them of "getting on their soapboxes."

"Yours is the party that destroyed the economy in this state, ruined the budget," said Webber, also the GOP state chairman. "And today you’re going to enjoy focusing on the trees instead of the forest."

By Claire Heininger and Matt Friedman/Statehouse Bureau

Lisa Fleisher and Josh Margolin contributed to this report.