Senate President opposes the cap if it resembles the old plan because it does not exempt higher education aid, Medicaid programs
Assemblyman Declan O'Scanlon TRENTON — When Gov. Chris Christie first proposed a constitutional cap on property tax growth, his plan included a limit on state government spending as well.
That restraint on state spending evaporated amid the debate and ultimate compromise this week that gave New Jerseyans a 2 percent cap on property tax growth, with various exceptions.
Now two lawmakers hope to bring it back.
State Sen. Steve Oroho (R-Sussex) Friday proposed a statutory 2 percent cap on state spending for operational expenses. Assemblyman Declan O’Scanlon (R-Monmouth) said he’ll do the same in the Assembly.
"I just think we have to have the same requirements as the municipalities, counties and school boards," Oroho said.
The bills would only cap state discretionary spending — about 30 percent of the budget, according to O’Scanlon — exempting federal money and funds for school aid, municipal aid, debt payments, states of emergency, capital construction projects and the Property Tax Relief Fund.
Lawmakers said the need to cap state spending lacked the urgency of local spending because while those expenditures have risen consistently in the past decade, the state’s have dropped for four years.
Part of state spending already is capped, based on a complicated formula that multiplies the amount of the last state budget by the average three-year growth rate of per capita income — which comes to 3.45 percent for the budget the governor signed last month.
Christie spokesman Michael Drewniak said the state spending cap remains "under consideration," but getting "tool kit" legislation that will allow towns to meet their lower cap is a higher priority. He said the current $29.4 billion budget is "an example in the budget cuts that we’ve made and our recognition of a need for austerity."
Senate Democratic spokesman Derek Roseman said Senate President Stephen Sweeney (D-Gloucester) opposes the cap if it resembles the old plan because it does not exempt higher education aid, Medicaid programs and grants-in-aid that include funds for nursing homes. But he said Sweeney is open to compromise.
Assembly Speaker Sheila Oliver (D-Essex) has asked Assembly Budget Committee Chairman Lou Greenwald (D-Camden) to study the proposal.
Municipal officials and lobbyists, however, note the state has been able to keep its budget down in part by deferring pension payments, an option towns don’t have. This year, the state deferred a $3 billion pension payment.
It would also be seen as a gesture of good will.
"I think it is imperative that state government lives by the same rules and regulations that they impose onto local government," said Bill Dressel, executive director of the state League of Municipalities.