newjerseynewsroom.com

BY ALEX DeCROCE

COMMENTARY

July 13 marked a turning point for New Jersey's taxpayers, because that's when Gov. Christie signed into law bipartisan legislation to cap local government spending increases at 2 percent.

Although Cap 2.0 will not take effect until next January, the era of reforming government and the way it goes about spending the public's dollars has officially begun. Until Gov. Christie took office, there was no substantial progress toward addressing the crippling property taxes paid by New Jersey homeowners. But Cap 2.0 has sent a clear message that the days of never-ending property tax increases are over.

Previous caps failed because they could be exceeded for several reasons. Cap 2.0 has few exceptions: capital improvements and debt service, pension and health-care costs and legitimate emergencies, such as natural disasters. The most powerful exception is the one that says governments can exceed the cap for another reason if, and only if, a majority of voters approve.

But this firm cap is too restrictive for some. No sooner was the cap signed into law than some legislators were already talking about creating more exceptions to the cap. That will not happen under Gov. Christie. If the law is changed, it will be to make it stronger for taxpayers, not weaker.

New Jersey's overburdened taxpayers should be encouraged by how swiftly and efficiently the governor dealt with an issue that has plagued our state for decades. Too many politicians came to state government in Trenton promising a different way, only to deliver disappointment. In the six short months Gov. Christie has been in office, he has reformed unemployment insurance and public employee benefits, balanced an $11 billion budget shortfall without raising taxes and capped local government spending. It is safe to say he pays more than lip service to problems.

It didn't take long for the cynics to try to throw a wet blanket over Cap 2.0. Predictably, the special interests that benefit from maintaining the status quo or who just don't want to be part of the sacrifice that is required to reform a state recovering from a decade-long spending spree have been spreading doom-and-gloom predictions.

No one expects Cap 2.0 to immediately cure New Jersey's property-tax problem. That's why it's so important to enact the rest of the governor's "tool kit" proposals to reform New Jersey government by addressing outdated civil-service laws, public employee entitlements and other items that increase property taxes. Without these corresponding reforms, Cap 2.0 won't work. Gov. Christie has said this repeatedly.

The members of my caucus are eager to advance on these bills; the onus is now on the Democrats in the Legislature to get to work providing local officials the ability to once and for all control property taxes.

Meanwhile, it won't be surprising to see a high correlation between the increase in property taxes a town experiences this year and the level of cooperation it received from the labor unions representing its public employees. Towns asked employees for some concessions to offset property-tax increases, but more than a few were told by these groups to look elsewhere for savings.

There will undoubtedly be some bumps along the road to fiscal reform in New Jersey. Government's addiction to spending didn't materialize overnight. This obsessive compulsion has grown for the last eight years. And now government must wean itself from this habit in order to change course from the destructive path it has been traveling.

Requiring voter approval to exceed the 2 percent spending cap is the linchpin of the new cap. This provision was resisted by politicians and public employee union leaders who don't trust the voters to do the right thing. Fortunately, Gov. Christie and Republicans in the Legislature stood with taxpayers and insisted that the people, not bureaucrats in Trenton, should be the ones who decide whether local spending should grow beyond 2 percent.

Cap 2.0 is a critical first step to reform New Jersey. The supporting legislative proposals that are part of the governor's comprehensive tool kit will enable mayors and school officials to live within the spending limits mandated by the new law. They are vital in the effort to restrain government spending and achieve the goal of making our state affordable for all taxpayers.

We are off to a good start in changing the way government has historically operated in New Jersey. The priority is finally placed with the taxpayer and not on those whose self-interests have been detrimental to our state.

Alex DeCroce, R-Morris, is the Assembly Republican Leader and represents the 26th Legislative District.

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