Senate Democrats Jump on Christie Bandwagon, Strike Deal to Cap Taxes at 2%
For one bright, shining moment on Friday, the State Legislature operated as a deliberative body intent on sifting through information, finding facts, and crafting responsible solutions for New Jersey residents. There was bipartisan agreement that "a deliberative process in studying and advancing property tax reform for New Jersey residents" was the only way to get things done right.
It lasted all of 30 hours before Senate Democrats again capitulated to Chris Christie and gave him everything he wanted.
On Friday, the Senate Budget Committee met at the demand of Christie, and set a timetable for discussing the property tax burden in New Jersey, what drives it, what can be done about it, and how meaningful relief could be provided to New Jersey residents. The Senate set a schedule for hearings once per week, with a goal of crafting some solutions by September. The Assembly Budget Committee met as well, taking testimony on the 2.5% Constitutional Cap proposed by Christie. Even though Christie mandated the legislature be in session to seek information about the property tax question, he sent his administration on vacation, and it was difficult for the committee to answer questions without anyone from Christie's administration to talk about education, pensions, or the State Health Benefits Plan.
For an entire day, it seemed like legislators were actually going to obtain facts, take input from the public, work together to do something that put policy in front of politics. In other words, it seemed like the New Jersey State Legislature was going to do what legislative bodies are supposed to do.
Responsible things were said. So responsible, in fact, that some in the press accused Democrats of "standing firm." "This is a 30-year problem, and you're not going to solve a decades-long problem over a three-day holiday weekend, especially when some of the departments cannot even come in to answer our questions," said Lou Greenwald, Chair of the Assembly budget Committee.
Paul Sarlo, Chair of the Senate Budget Committee, pointed out that since municipal budgets were already set for 2010, any property tax cap would not have a single penny's worth of effect on taxes until at least the middle of next year, and that the legislature should take the time to study the issue.
And then, on Saturday afternoon, before hearing any testimony, before obtaining any facts, before the first look at an actuarial table or the state's budget obligations, Senate Democrats announced they had struck a deal with Christie on a property tax cap proposal. The deal caps tax increases at 2.0%--lower than even Christie had proposed--but excludes costs of health benefits and pensions from the cap. Although the details of the deal are not yet clear, CWA expects that this cap will apply to collectie bargaining awards as well, meaning public workers will be ineligible for a raise of more than 2.0% for as long as they remain on the job.
Leaders in the Assembly, to their credit, have not yet signed off on the proposal. It is unclear whether the Assembly will continue down the road of real solutions, or take the easier path of political sound-bytes.
CWA will be in Trenton today, encouraging solutions to be driven by facts and figures, not politics. You can help by calling Assembly Speaker Shelia Oliver at (973) 395-1166. Tell her we need solutions, not sound-bytes, and that you expect the Assembly to take the time to get property taxes right the fist time.
