newjerseynewsroom.com

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

UPDATED

Gov. Chris Christie Monday announced he is presenting a 33-bill package to the Democratic-controlled Legislature that he sees as a bold step in solving New Jersey's property tax problem and reforming the operations of local government, and public and higher education.

The package, tagged the "Christie Reform Agenda,'' would put a cap on property tax increases and state spending at 2.5 percent, while giving cities and towns and county governments, school districts, and colleges the tools to control costs and live within the cap.

"For far too long, New Jerseyans have been on the receiving end of higher and higher taxes imposed by state and local governments, which have been unable or unwilling to curb costs,'' Christie said at a Statehouse press conference. "Today, that comes to an end. With this package of bills, we are now taking action to bring to an end the current property tax crisis and giving people real relief. After talking about the direction we need to move, we now need to get down to business and enact these reforms.''

Under Christie's proposal, the property tax levy cap would allow for adjustments in the event a municipality adds new ratables, and provides a single exclusion from the cap: debt service payments. The governor said current law provides for a 4 percent cap with at least 13 broad exclusions that render the cap virtually meaningless.

Christie said the bills provide reform in a number of other areas for local governments to directly address cost drivers and make living within "Cap 2.5" that are realistic.

The governor has already recommended what he sees as reform in the areas of civil service, collective bargaining, employee pensions and benefits, red tape and unfunded mandates, election reform and shared services.

"Today, we take an important step closer to lasting property tax relief,'' Christie said. "I am committed to working with the Legislature so we can act and get this done to finally fulfill a long overdue obligation to the people of New Jersey to bring property taxes under control.''

In response to Christie's announcement, six Senate and Assembly Democratic leaders issued a statement that indicated they will consider his legislative package if he considers their proposal to restore the income tax surcharge on 16,000 New Jerseyans who earn more than $1 million annually.

The statement was from Senate President Stephen Sweeney (D-Gloucester), Assembly Speaker Sheila Y. Oliver (D-Essex), Senate Majority Leader Barbara Buono (D-Middlesex), Assembly Majority Leader Joseph Cryan (D-Union), Senate Budget and Appropriations Chairman Paul Sarlo (D-Bergen) and Assembly Budget Chairman Lou Greenwald (D-Camden).

"We always welcome ideas to try to control government costs and property taxes, but we expect a reasonable, intelligent and in-depth discussion based on facts,'' they stated. "Our success in working with the governor earlier this year on pension reforms shows how the best results come from bipartisan teamwork. But the fact is that this so-called tool kit, if enacted today, would do nothing to stop the property tax increases and fee hikes on senior citizens and the middle-class that Governor Christie has proposed in his budget plan.

"Our focus right now is on saving senior citizens from Governor Christie's plan to increase their prescription drug costs while slashing their property tax relief. Protecting senior citizens from these unfair and brutal cuts is our emphasis,'' the Democrats continued. "We will examine the governor's plan, take what's in it and try to make it better, and we will do so with a thoughtful and thorough approach. Based on his flawed executive orders, Gov. Christie certainly knows first-hand the problems that occur when policy is rushed, so we are hopeful he is willing to work with us."

Assembly Republican Leader Alex DeCroce (R-Morris) said the legislation proposed by the governor would give local government and school boards the means to contain expenses and keep property taxes in check. He said the legislation is something taxpayers have been seeking for a long time.

“New Jersey’s taxpayers finally have a governor who knows they can no longer absorb the high cost of government and is offering a comprehensive plan to attack the escalating costs that have plagued the state for years,” DeCroce said. “Governor Christie understands that runaway spending is what makes the state unaffordable and that’s why he is providing a blueprint to municipalities, counties and school boards so they can control costs. The governor’s proposals provide the flexibility they need to balance the needs of their community while keeping taxes from spiraling out of control."

DeCroce also commented on the Democratic proposal to enact a “millionaires” tax.

“The Democrat proposal to raise taxes again is a ‘return to the familiar’ that people realize is a failed approach,” he said. “After 10 years of governing, their only answer is to continue to tax, borrow and spend. On a historic day when they should be embracing the fiscal reforms we have needed for so long, their solution is to maintain the status quo."

Here is a breakdown of Christie's proposals: Bills effecting municipal and county government:

1. Constitutional amendment to impose a 2.5 percent cap on increases in the property tax levy increases for municipal, school and county taxes, cap banking is allowed.

2. Constitutional amendment to place a 2.5 percent cap on spending for state government operations (excluding state aid to municipalities and school districts and direct property tax relief); cap banking is allowed.

3. Reform in selection of arbitrators for union contracts.

4. Arbitrators are mandated to consider impact of union contracts on property taxes, no such requirement in current law.

5. Arbitrators are barred from making contract awards that exceed 2.5 percent cap, inclusive of all salary, benefit and other economic contract provisions.

6. Pension benefit reform – eliminate eligibility for state retirement systems for non- government groups and associations.

7. Pension benefit reform – cap sick leave and carry forward of vacation for current employees.

8 & 9. Shared services reform – when local units decide to share services current law requires buyout of union contracts, bumping and other civil service protections that destroy the efficiencies of the merger; this proposal eliminates certain civil services protections when services are shared. (Two bills required to amend different statutes).

10. Allow employee furloughs by local government to save costs.

11. Allow counties and municipalities to opt out of civil service municipalities by ordinance or referendum initiated by 15 percent of the voters.

12. Public employee discipline reform – reclassify many offenses as minor to avoid lengthy and costly hearings for relatively trivial infractions.

13. Police employee discipline reform – reclassify many offenses as minor to avoid lengthy and costly hearings for relatively trivial infractions.

14. Firefighters discipline reform – reclassify many offenses as minor to avoid lengthy and costly hearings for relatively trivial infractions.

15. Employee discipline reform – revise appeal process of employee disciplinary hearings to reclassify many offenses as minor.

16. Revise layoff rules to allow less senior, but more essential employees to avoid bumping.

17. Give the state Civil Service commissioner more day-to-day control as when the Department of Personnel was a freestanding department.

18. Increase testing and appeal fees for civil service promotional exams.

19. Allow Civil Service commissioner to make seasonal appointment for nine months.

20. Allow municipalities to offset property tax refunds against State income tax refunds.

21. Expand parties that may bring challenges to Council on Local Mandates to includes groups, like the League of Municipalities. (Currently, only individual municipalities can do this and is too costly for one town to "go it alone.")

Bills effecting public education:

22. No school contract award in excess of 2.5 percent cap, inclusive of all salary, benefit and other economic contract provisions.

23. School districts could once again impose a "last best offer" contract under certain circumstances.

24. Executive county superintendents approval of all union and superintendent contracts. No approval of contracts with:

• Salary/benefit increases exceeding the 2.5 percent cap;
• Pupil contact time per day as set by regulation;
• Minimum number of work as set by regulation;
• Prohibition on contracting out auxiliary/ancillary services.

25. Executive county superintendents would be required to implement sharing of school business functions across districts and with municipalities.

26. Pension reforms similar to those affecting municipalities.

In addition to the bills primarily affecting municipalities, school districts and county government, the governor has also recommended a number of key reforms to assist New Jersey colleges in lowering costs, economizing, and managing their budgets more effectively.

Bills effecting higher education:

27. Revise fact finder decision standards (when awarding a new employee contract) to account for decrease in state aid level, effect on tuition, and benefits already provided to employees.

28. Designate state colleges and universities as employer of record for collective bargaining.

29. Allow state colleges and universities to hire faculty members for a probationary period.

30. Remove classified employers from Civil Service status and include them within each institution's personnel system.

31. Allow separate workers compensation program management for colleges.

Bills effecting election reform:

32. Require only single ballot to each household instead of multiple ballots to all voters residing in household.

33. Move school and fire elections to November.