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Archive for the ‘New Jersey Taxes’


Will Property Taxes Be Christie’s Albatross?

As we all know, New Jersey is in a serious fiscal crisis. Next year the state is facing a mind-boggling $8B deficit and, based on recent experience, that deficit is only likely to balloon further. This puts our new governor Mr. Christie in a real predicament – balance the budget according to state law without borrowing money and while trying to live up to his campaign promise to cut taxes.

Politically, Christie is going to be under tremendous pressure to follow through and cut taxes. The suffocating tax climate in New Jersey is one of the main reasons he was elected and property taxes were the top issue for New Jersey voters this year. Further, according to some recent polling, voters are expecting Christie to cut taxes in his first year.

The signals, though, that Christie will follow through on property tax relief so far aren’t promising.

First, Christie has shown no inclination to do anything at all about the unfair school funding formula in the state. As we witnessed during the primary with Steve Lonegan, Mr. Christie does not support changing the formula to a per pupil basis which would result in a 20% cut in property taxes.

In a column last week by Paul Mulshine, he explained that Christie is not only opposed to increasing state aid to suburban towns like Toms River, but that he also opposes ending mandates like binding arbitration: 

No sooner were the votes counted than he was telling suburban voters they’re out of luck if they thought he was going to help them with their property tax bills.

That happened last week when he met with several Ocean County mayors in my old home town of Toms River. Christie scored his biggest wins in Toms River and adjacent Brick Township, which together gave him 38,000 votes toward his 100,000-vote margin of victory. The mayors of those and other towns asked him if he will deliver badly needed state aid to their towns.

“I’m not going to give Newark’s money to Toms River,’’ Christie told them.

The mayors then proceeded to tell the governor-elect that if they won’t be getting more state aid, then at least they need to be relieved of state mandates. The most costly such mandate is binding arbitration of labor disputes. The arbitrators routinely award raises that can add up to double the current cap on tax hikes, which is 4 percent.

I discussed this yesterday with Manchester Township Mayor Michael Fressola, who was at the meeting. Fressola said the police in his town now earn an average of $94,000. In the absence of state aid, homeowners have to pick up that tab.

“That’s why we were asking him to get rid of a lot of the mandates,” said Fressola. “That would in effect be the same as more state aid.”

It would indeed, but McGreevey’s response to the mayors was: “I can’t see eliminating binding arbitration.”

I’m sorry, did I say “McGreevey”? I meant “Christie.” Pro-taxpayer before the election, pro-union afterward. It’s hard to tell the two apart.

This leaves the property tax gimmick. Christie won’t be able to deliver on his promise to first, restore, then increase the rebates without borrowing or increasing the income tax which funds the rebates. Again, either more debt and fiscal peril or, on the other hand, broken campaign promises.

Herein lies the problem that so many conservatives had with Mr. Christie throughout the campaign. Yes, there was a lack of specifics, but there was also a more overriding doubt that he would have the political will and courage to address the serious structural problems with the budget.

Today, Mr. Christie is meeting with his transition team to discuss taxes. It will be interesting to see what other signals come from this meeting. Will he show any more willingness than he has to date to address the aforementioned issues? Or will we hear more generalities and platitudes?

For Mr. Christie’s sake I hope it is the former and not the latter. For if he ultimately fails to deliver on real property tax relief I believe it will to his own political peril. The people who voted for Mr. Christie are expecting no less and they will surely hold him accountable four years from now.  

The time is now for bold leadership on this issue and the state’s finances in general - not timidity and sleight of hand.

[ON EDIT] And on cue: NJ Budget May Be Worse Than Thought: Christie

Cross-posted at Red County and CMNJ.

REMINDER: Vote ‘NO’ On Ballot Question #1!

Please be sure to vote ‘NO’ on Ballot Question #1! Say ’NO’ to higher debt and higher taxes!

Check here for my posts on this subject.

New Jersey Voters On Hannity

Last night a group of New Jersey voters appeared on Hannity. The discussion touched on their general feelings about the state of things in the nation and New Jersey, as well as their views on issues like taxation. Later in the focus group session, these voters discussed their opinions of Christie and Corzine while also reacting to some TV ads from both camps.

Overall, the discussion was interesting and enlightening. In listening to these fellow New Jerseyans – regardless of their views (and some did have some radical views, particularly on wealth redistribution) - my sense was that all of them wanted to hear more specific plans from each candidate. They are tired of the bull that goes on and are craving some real leadership. They don’t seem to think they are seeing that from Corzine or Christie in this campaign – and I sure as heck can’t disagree with them.

Here is the discussion in its entirety.

Corzine-Weinberg Lies, Deceipt And Manipulation

The latest Corzine-Weinberg campaign e-mail is so chock full of lies, deceipt and manipulation I couldn’t let it go. The e-mail begins by touting Corzine’s 5-point lead in a ‘widely-respected poll.’ So respected is it that the name of the poll isn’t mentioned, nor is a link provided.

Next, Corzine-Weinberg attempt to demonize Christie on the issue of health insurance mandates. Their campaign has been banging the drum on the mammogram issue for some time now. But their e-mail is a clear attempt at the politics of fear; attempting to manipulate people into thinking that no government mandate would mean insurance companies would not offer coverage of mammograms and autism screenings at all.

Likewise, they attempt to scare people by claiming that Christie would let hospitals discharge moms 24 hours after giving birth. Again, the impression Corzine-Weinberg want to create is a scenario in which a mother and newborn child would be pushed out the door even if they were in no condition to be discharged – as if any well-respected doctor or hospital would allow such a thing. The irony, of course, is that this is exactly the kind of rationing of healthcare we will see if Obamcare becomes the law of the land. 

As for paid family leave, what Corzine-Weinberg won’t tell you is that it is a tax for a benefit that most workers will never use in their working lifetime. Paid family leave also puts more pressure on businesses who have to compensate an inactive – and thus unproductive – employee. Moreover, paid leave is unfair to those who work in small companies – something I documented here.

Corzine-Weinberg claim Christie supports a constiutional amendment to ban abortion. I’ve never heard him say such a thing. I have heard Christie say he’s pro-life, but that’s about it. Moreover, even if Christie supported a constitutional amendment, he would have no say in the matter. Such an amendment would have to be passed by Congress and then ratified by the state legislatures.

The Corzine campaign also continues to perpetuate the falsehood that he has cut property taxes. NJ remains worst in the nation for property taxes. Corzine all but elininated our rebates. State aid has been cut to places like my hometown of Hackensack, resulting in considerable increases (when I moved here in 2005 my taxes were over $2500 less than they are now).  

On top of this, the Corzine team would have us believe they took stimulus funds and used them to keep property taxes from escalating further. The reality is they took the funds and used it as a one-shot gimmick to plug a gaping budget hole. In other words, Corzine put off the tough choices and, now, the state is staring at a $8B hole next year. And at the same time he raised taxes by a billion dollars! But the idea promulgated here – that rejection of the stimulus funds would result in a $2B increase in property taxes – is pure bunk.

Of course, none of this should be too surprising. When your record is one of abysmal failure, resorting to outright lies and distortions to get re-elected is probably the only card left to play. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cross-posted at Red County and Conservatives with Attitude!

Steve Lonegan On Wasted Green Acres Funds

Steve Lonegan took a little trip to North Bergen to show us where our Green Acres funding has been spent. The video says it all.

And so does this one from Hoboken:

For more, go to StopHigherTaxes.com.

Cross-posted at Red County and Conservatives with Attitude!

More On Ballot Question #1

Fellow blogger Alice Shope – Alice’s Restaurant Blog – has a very detailed post on the open space ballot question. If you want to understand more about it, then I highly recommend reading her post.

Also, check out this internet ad on the open space initiative released by StopHigherTaxes.com.

Say No To Ballot Question #1 — Continued

Why should you oppose Ballot Question #1? Because not only does the money pile debt on top of mountainous debt, but because the money is also abused by politicians to pay for things that have nothing to do with open space. Like astroturf fields, skating, parks, and parking garages. Steve Lonegan explains:

How is this money spent?

Instead of rural and suburban communities, the program spends millions on “recreation” programs in urban areas.  Grants are weighted so that cities receive three dollars for every dollar spent in rural and suburban communities.  

Is there anything “green” about building parking lots on the last remaining open space in North Bergen – or laying artificial turf over farmland in Burlington County?

These headlines tell the story:

Hoboken siphons $2M in state funds (Jersey Journal, 05/15/02)
Hoboken has shifted $2 million in Green Acres funding, earmarked for a stalled project, to three projects they can begin right away… About $1 million will go to rehabilitating the soccer field which was constructed about three years… About $250,000 will go to constructing a one-half-acre skating park… About $400,000 will go to creating the Jackson Street Garage Park.

Hudson athletic fields to get synthetic turfs (Jersey Journal, 04/27/09)
The county received about $7 million in grants this month from New Jersey’s Green Acres Program… the cost of construction for a new dual use synthetic turf field for soccer and football, as well as the installation of a sports lighting system, permanent bleachers, fencing, landscaping and a restroom building…

Green Acres helps to fund stadium in park (Herald News, 06/11/09)
“It seems like a conflict of the mission of Green Acres,” said Tony Lopez, who has lived across from the park for 23 years. “Park space in urban areas is scarce, and they’re taking 4 acres. I can’t describe it. It’s a tragedy.”

Artificial turf risky for kids?
Critics also worry about impact on ecosystem
(Record, 11/23/07)
The artificial turf is generally made with plastic fibers stitched onto a nylon mat to resemble blades of grass. Granules of chrome rubber, sometimes mixed with sand, are sprinkled on the field to make it spongier…  The irony, environmentalists say, is that a number of these fake grass projects have been subsidized by the state’s Green Acres program — money intended for land preservation.   In recent years, state officials have Green Acres funds for 13 artificial turf projects.

Plans move ahead for turf field in Mt. Laurel (06/12/08)
Plans are moving forward to install a synthetic turf field at the Conrow Farm site on Mount Laurel Road, including lighting and parking.  Under that program, up to 50 percent of acquisition costs are paid by the state and 25 percent each by the county and township.  

And as Steve mentioned, like education dollars, this money isn’t distributed fairly. Urban areas take the bulk of the dollars – and then waste it on things like the aforementioned projects.

What happened to the $200 million they borrowed just two years ago?

Well, $47 million of it was cut out and earmarked for recreation projects like stadium parking lots, artificial turf, and skateboard ramps.  Where did that money go? 

Well it didn’t go to suburban and rural communities.  That’s because of a funding formula that uses a bias in favor of urban areas.  Under this formula, cities get three dollars for every dollar that goes to suburban and rural communities. 

(Scan pages 3, 4, & 5 of the 2009 Green Acres Program Project Descriptions document.)

Take a look at the millions going to cities and urban counties.  Note, by comparison, the paltry amounts going to rural and suburban communities.

(Scan pages 7 through 39 of the 2009 Green Acres Program Project Descriptions document.)

Notice something missing?  There’s no mention of any money going to Sussex and Hunterdon Counties – two of New Jersey’s most rural counties.

Ask yourself:  Is this program based on the considerations of open space, or is it based more on political considerations?

Be sure to send trenton a message this Election Day. Say “NO” to more spending and debt. Vote “NO” on Ballot Question #1! For more go to StopHigherTaxes.com.

Steve Lonegan On Ballot Question #1

At last weekend’s Conservative Leadership Breakfast (hosted by Conservative with Attitude’s own Michael Illions), Steve Lonegan gave a presentation on the open Space ballot initiative. Steve is leading the opposition to this initiative which will only add to the state’s already out of control taxes and debt.

In the following two clips, Steve explains in detail what Ballot Question #1 is all about and why you should emphatically vote “NO!”

For more on this, go to Stophighertaxes.com

Mulshine: Neither Corzine Nor Christie Have A Plan To Cut Property Taxes

Paul Mulshine has an absolute must-read piece today. If for nothing else, it will provide you with an education on property taxes in New Jersey. More importantly, however, Mulshine’s piece explains in stark terms why neither Christie nor Corzine will do anything to address the out-of-control property taxes in New Jersey. As such, it’s also as good an explanation as any as to why so many principled conservatives simply can not bring themselves to support Mr. Christie. Here is a teaser:

It was a fun week for the Star-Ledger editorial board. All three candidates for governor came in to be interviewed about their plans for the state.

The bad news for you the taxpayer is that the top two, Jon Corzine and Chris Christie, made it clear they have no plans to address the issue most important to voters in this state: high suburban property taxes.

You’ll note I employed the modifier “suburban.” That’s because our cities get massive amounts of state aid and their residents pay just a tiny proportion of the cost of government.

As you can see from this Star-Ledger data base, in Newark the residents pay a mere 5 percent of the cost of government. No wonder they don’t mind when the councilmen get big salaries and big cars and the kindergarten teachers make $90,000 and more.

And no wonder they vote Democratic. Governor Corzine has made it clear he’ll keep piling the pork in the urban pork barrel if re-elected.

But what about the suburbs of these cities? Why do they go Democratic by such large margins?

Beats the heck out of me – especially after what I heard Corzine say Thursday.

As you can see in the above video, Corzine gave the outlines of his budget plan during the interview.

And he gave his usual spiel about how under his new school-funding formula “the money follows the child.”

One problem: It doesn’t follow the child if the child lives in a town considered too wealthy to get state aid.

Two such towns are Montclair and West Orange. These towns have what must be the highest property-tax bills on the planet – though it’s difficult to make exact comparisons.

As I noted in a prior column on West Orange, property taxes are so high there that they are approaching the level of the mortgage. If you wanted to buy a condo in West Orange, your would find that the tax bill would likely be just a bit lower than your mortgage payment.

Who in their right mind would buy in such a town? Well, Whoopi Goldberg. But she’s got a lot of dough.

Here’s an example of the absurd disproportion as illustrated by figures from that data base:

 The typical homeowner in Montclair gets a mere $564 in property-tax relief aid on his school tax bill.

Now try and guess how much aid a typical homeowner in Newark gets?

 Twice as much? Five times as much? Ten times as much?

 Nope. Thirty-five times as much.

That’s right. The typical Newark homeowner receives a staggering $19,625 in state school aid against his property-tax bill.

Until we address this imbalance, we will not have property-tax relief. Both Corzine and Christie like to yammer on about non-issues such as municipal consolidation. But the figures don’t lie.

Read the rest here.

Cross-posted at Red County and Conservatives with Attitude!

Christie Still Misty On Property Taxes

Our friend over at More Monmouth Musings, Art ‘ Get On Board’ Gallagher, has posted up an interview with Chris Christie. Not surprisingly, the 8-minute interview is hardly revealing. However, I couldn’t help but pay particular attention to Christie’s response to the issue of property taxes. Unfortunately, Mr. Christie was just about unclear about what he would do as he was inaudible due to the background noise. Watch and listen here.

So, according to Christie his plan to reduce property taxes boils down to consolidating services and working together. Not a word about the school funding formula that sends so much to the former Abbott Districts out of the pocketbooks of so many urban and suburban New Jerseyans.

And just what does Christie mean by working together? Why doesn’t he just come up with a plan and implement it when elected? What help does he need other than having a few Democrats vote with Republicans in supporting what he wants? This is the tone of a consensus seeker, not a leader.

Meanwhile, Art refers to Christie’s 88 ways to fix New Jersey. I checked it out and ran a search on property taxes. There’s not one reference to cutting property taxes in any of the 88 bullet points. Not one. It is all generalities.

So, here we are on Labor Day; summer is ending and this campaign is about to come down the home stretch. And still, after some 7 months of campaigning and a significant lead in the polls over a very unpopular governor, Christie can’t bring himself to offer any specifics on how he will address the #1 issue on the minds of New Jersey voters. We are just supposed to trust that he’ll figure it out when he gets to Trenton.

Sorry, but I think New Jersey taxpayers deserve better.

Cross-posted at Red County and Conservatives with Attitude!