TRENTON — Teachers union, school board and municipal representatives this evening said a plan to lower the state's property tax cap to 2 percent would hamstring local governments, but they had varying concerns. The plan, a compromise reached between Gov. Chris Christie and Senate Democrats, would tighten the limit on property tax increases, lowering the cap from 4 percent...
There was an air of conviviality in the air during a press conference where Gov. Chris Christie spoke about the property tax compromise. Lt. Governor Kim Guadagno, Senate President and Steven Sweeney joined him in his office at the Statehouse in Trenton for the announcement. TRENTON — Teachers union, school board and municipal representatives this evening said a plan to lower the state's property tax cap to 2 percent would hamstring local governments, but they had varying concerns.
The plan, a compromise reached between Gov. Chris Christie and Senate Democrats, would tighten the limit on property tax increases, lowering the cap from 4 percent to 2 percent and limiting exceptions to pension, health care, debt payments, natural disasters or rising school enrollment. The current policy allows local governments to ask the state to go over the cap for a number of reasons -- including for costs deemed necessary for the "health, safety or welfare" of the community.
The Assembly Democrats have not signed on, saying they need more time to vet the proposal. Both houses need to approve legislation.
William Dressel, executive director of the League of Municipalities, criticized state government leaders for pushing the cap before an accompanying proposal from the governor to give towns more power over public worker unions. He said local governments will be helpless without the expanded powers to deal with limits on property tax increases.
“It’s like a race car that’s ready to go and doesn’t have an engine,” he said. “It does not take into account the fiscal realities municipalities face.”
Christie today pushed for the Legislature to pass what he calls the “tool kit” as well, and Senate President Stephen Sweeney said the Senate would pass some form of tool kit by the fall.
School organizations also criticized the proposal. The New Jersey School Boards Association said schools should be provided exceptions for costly programs they are required to provide for special needs students.
The New Jersey Education Association, the state’s largest teachers union, called the proposal a “closed-door deal” that will “devastate New Jersey’s public schools and community services.”
The Assembly budget committee plans to meet Wednesday, and Sweeney said the full Senate will vote on the measure on Thursday.
By Lisa Fleisher and Chris Megerian/Statehouse Bureau Staff
More coverage:
• Gov. Christie, Senate leaders announce 2 percent property tax cap compromise
• N.J. Assembly Speaker has not agreed to Christie, Senate 2 percent property tax cap deal
• Gov. Chris Christie, N.J. Senate leaders reach deal on 2 percent property tax cap
• After day of impromptu meetings in Trenton, fate of proposed property tax cap remains unclear
• N.J. Assembly panel requests more time, testimony to consider Gov. Christie's tax cap
• Special N.J. legislative session kicks off property tax cap showdown
• Gov. Chris Christie's prepared speech to the Legislature