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If you are seeking a crash course on where the gubernatorial candidates, Democratic Gov. Jon Corzine, Republican Chris Christie and Independent Chris Daggett stand on a list of issues that affect New Jerseyans and their wallets, this is the posting to read.
In response to questions posed by the New Jersey State League of Municipalities, the Trenton-based lobbying arm for local government, the candidates have provided their views on such issues as property taxes, spending priorities, shared public services and government consolidation, sales taxes on out-of-state catalog purchases, and state mandates on local government.
I've met and talked with the candidates,'' said Hope Township Mayor Timothy C. McDonough, League president. "You can be certain that they have great respect for local government and for local officials and that they really do have the best interests of the people of New Jersey at heart."
Here are the questions and the candidates' responses:RELIEF FROM STATE MANDATES
In April, New York Governor David Paterson recognized how state mandates drive up local property taxes. He issued an Executive Order that directs the State bureaucracy to document the fiscal impacts of any such proposals, to conduct an honest cost-benefit analysis, to demonstrate the participation of local governments in the process and to propose sources of revenue to fund the new mandate. The Order, further, directs all state agencies to review all their existing regulations and to report back with proposals detailing changes "...which could reduce the impact of existing mandates on local governments and generate property tax relief for New York State property taxpayers." Will you make mandates relief a priority next year? How?
CORZINE: As governor, I have regularly looked at repealing mandates not related to the health, safety and welfare of New Jersey citizens, and I will continue to do so this next year. We have a long history in this state of repealing mandates not related to health, safety and welfare that are best funded locally.
The New Jersey Constitution already provides a mechanism for mandate relief through the Council on State Mandates. The council is charged with determining whether a state law, rule or regulation imposes an unconstitutional "unfunded mandate" on boards of education, counties, or municipalities. Governor Patterson's action is the first step in developing a system comparable to New Jersey's.
In the past, the Council on State Mandates has reached interpretations that are very favorable to municipalities, thereby serving its function as a bulwark against overburdening localities. This is better than what exists in New York, where no such mechanism has been firmly established, as there has been New Jersey. I look forward to reviewing the results of the mandate survey you are currently conducting with your membership and working with the League and other stakeholders to identify other areas for cost reductions.
CHRISTIE: I have been very clear in my position that New Jersey suffers from over regulation and oppressive mandates imposed from Trenton on our businesses, municipalities and our schools. In the Christie-Guadagno administration, existing mandates on municipal governments will be immediately reviewed with an eye toward eliminating them or making them less costly. In addition to honoring the constitutional prohibition against unfunded new mandates, the Christie administration will also require all new government programs and services be evaluated both before and after they are created. This means employing a cost-benefit analysis on new programs being considered, "sunsetting" all new programs, and including specific performance standards by which new programs are evaluated. I look forward to working with the League's Mandate Relief Committee to ensure that immediate relief is provided.
DAGGETT: New Jersey has adopted many state mandates, which unfortunately, have been approved without any state funding to help local governments comply with the new directives. It demonstrates the type of misguided actions which have landed state and local governments into such a fiscal mess. Clearly, it's been a factor in driving up property taxes. It also ignores a constitutional amendment approved by voters in 1995 prohibiting the executive and legislative branches from imposing unfunded mandates on local governments. Given today's economic climate, we have to take an exhaustive look at all of the state mandates to determine which are no longer necessary or too onerous and can be eliminated to provide some measure of local property tax relief. We must not, however, do so at the cost of sacrificing environmental protection, public health or workplace safety.
ENSURING STATE AID TO CITIES AND TOWNS
Over the last century, many taxes that had been collected by local governments were either abolished or became state taxes. In most cases, when these changes were made the state promised to reimburse municipalities either the amount they had been collecting or the amount that the state would collect. But that commitment has rarely been honored. These are revenue replacement programs. When the state fails to honor its commitment, municipalities are forced to raise the shortfall through other means. In most cases, the only other means available is the property tax. In the 1990's, legislators in both parties recognized the fact that increases in population, prices, wages and employee benefits – increases over which mayors and governing bodies have little, if any, control – erode the ability of local officials to keep a lid on property taxes with "level funding." Appreciating that fact, they put laws on the books that were supposed to preserve the property tax relief benefits of at least two programs, into the future. If elected, will you honor the state's statutes that require annual inflationary adjusted revenue replacement funding?
CORZINE: State aid directly supporting taxpayers, as well as boards of education, counties and municipalities accounts for more than 40 percent of the 2009-10 budget. With declining resources, I have prioritized the allocation of state dollars, while nurturing our children, honoring our seniors and protecting the most vulnerable among us.
As a result of my first-in-the-nation Economic Assistance & Recovery Plan and President Obama's American Recovery & Reinvestment Act, the economy is becoming poised to recover. Jobs will result from the construction of public roads, bridges, and schools, as well as the Mass Transit Tunnel to New York City. And, as the economy strengthens, there will be additional revenues to allocate to worthy programs. In the meantime, I will continue to work with the League to control and reduce costs at the state and municipal level.
CHRISTIE: The governor's failure to recognize his statutory obligation to direct funding in conformance with the original enabling laws was clearly evident in his handling of the 2009 and 2010 budget. Simply stating that the budget law trumps all other laws is not good enough. I can pledge to honor both the letter and the intent of all laws of this state. Where taxes have been levied for explicit purposes, we must honor those commitments and reestablish the credibility of the Office of the Governor.
DAGGETT: Before talking about adding revenue, we have to figure out how to take the costs out of the system. That will be my highest priority. Simply put, we must address the cost structure of government at all levels: state, county, local and school district – and the costs from unfunded state mandates addressed in the first question, above.
TOP PRIORITIES
Entering 2010, what are the top three priorities for the state government? How will you address these priorities?
CORZINE: The economy is priority number one, priority number two and priority number three. Before any other state in the country, we launched the New Jersey Economic Assistance & Recovery Plan in October. Recognizing the creeping global recession, I introduced a comprehensive, bipartisan package of policies, programs and legislation designed to mitigate the worst effects of the economic downturn. The plan includes assistance to those in greatest need, expediting job creation, stimulating business, enhancing the business climate and providing foreclosure relief. We have expedited job creation in schools and public infrastructure. Since October, our efforts have yielded more than 11,000 new jobs. Furthermore, we will ensure that the projected 100,000 jobs are created or saved in New Jersey through the federal stimulus.
Additionally, I have been working closely with President Obama to take full advantage of more than $17.5 billion available to New Jersey and its residents through the federal stimulus program, the American Recovery & Reinvestment Act. The ARRA provides a great deal of money directly to many cities and municipalities in New Jersey. More than $230 million is available for neighborhood preservation and stabilization, public housing, energy efficiency improvements and law enforcement.
As a result of the state and federal economic recovery packages, New Jersey is poised to rebound from the global recession stronger than ever before.
CHRISTIE: The number one priority of the state must be to return our citizens to work. Only with a strong and vibrant economy can we begin to address the myriad of problems facing this great state. Clearly, as part of fixing our economy, we must end the steady decay of our urban centers, a problem addressed in my "Bringing Back Our Cities" plan. No governor of New Jersey can succeed without recognizing that property taxes continue as the largest issue facing our residents. Until we resolve the structural issues driving our property taxes higher each year, we must continue to provide relief through the property tax rebate program – not eliminate rebates for 1.2 million New Jerseyans, as Governor Corzine just did.
DAGGETT: Priority number one is the economy, the budget and job growth. We need to cut the size and cost of government at all levels, dig our state out of a deep financial hole created by both political parties, and make our tax structure competitive with other states. We will benchmark New Jersey's state tax structure against other states and make recommendations for changes in income, inheritance, business and other taxes that bring our tax structure more in line with other states. We will establish a business advocacy program in the governor's office, dedicated to helping businesses navigate government permitting processes and securing the necessary financing to establish and grow their businesses. My second priority will be education and my third priority will be the environment. We have to be relentless in pursuit of educating every individual student. We cannot allow another generation of children to graduate from our schools without the education and job skills to compete in the new economy. We will eliminate the alternative assessment program that allows students to graduate without the necessary skills to compete in a new economy. Regarding the environment, more than ever before, a strong economy and a strong environment go hand in hand, and we need to ensure we are in a strong position to participate in the new "green economy."
THE ROLE OF THE LT. GOVERNOR
When you take the oath of office in January, you will be joined by New Jersey's first lieutenant governor. What role will your lieutenant governor play in your administration?
CORZINE: The lieutenant governor must be capable of operating inside the government. My lieutenant governor will perform a dual role, adding a cabinet position to his or her responsibilities. Furthermore, I firmly believe that one of the qualifications of the lieutenant governor is that the individual should reflect the rich diversity of the New Jersey political process.
CHRISTIE: I am delighted to be joined in this campaign by a talented and knowledgeable running mate in former Monmouth Beach Commissioner Kim Guadagno. With her experience in the Attorney General and US Attorney offices, in Monmouth Beach and as sheriff of Monmouth County, Kim has experienced firsthand the issues facing local elected officials and the citizens of this state. This background will enable Kim to go to work immediately addressing the bureaucracy that is crippling our state economy and our communities.
DAGGETT: The lieutenant governor will play a major role in our administration, however, in these tough economic times, I will not create another new bureaucracy around the position. New Jersey needs to find ways to reduce the cost of government, not create new expenses requiring new revenue.
THE AFFORDABLE HOUSING ISSUE
Over 250 municipalities have joined the League's challenge of the state Council on Affordable Housing's 3rd round regulations. The need to provide affordable housing is not the debate – most parties concede the need exists. But the approach towards the solution, the assessments and calculations by COAH are the subject of the debate. What is the future of COAH and affordable housing in New Jersey? And how should the need for affordable housing be integrated with the intent of the State Plan, the need for open space preservation and other state policy priorities?
CORZINE: For too many families, housing is simply unaffordable in New Jersey. During the last few years, the state Legislature and I have laid the groundwork to ensure that housing is available to all New Jerseyans and to raise the quality of life for everyone in this state. Since 2006, more than 27,000 affordable homes were created or maintained, the controversial system of regional contribution agreements was eliminated, state rental assistance was doubled and more than 5,000 first time home buyer mortgages were issued.
Under my first-in-the-nation Economic Assistance & Recovery Plan, a comprehensive foreclosure mitigation strategy was implemented. I have also provided housing opportunities to New Jersey's veterans and sought to protect the homeless population in New Jersey. Finally, I am taking advantage of hundreds of millions of dollars from the federal stimulus for affordable housing and neighborhood preservation.
Although the need for increased affordable housing opportunities has not diminished in any way, during this time of national economic crisis, I supported legislation to suspend the 2.5 percent Non-Residential Developer fee, while appropriating $15million to the state Affordable Housing Trust Fund. The legislation will remove the fee, which has been stifling investment in our municipalities. With the fee removed, builders can begin the projects that will serve as the catalyst for our economic recovery. By fueling our economic recovery, it gets us back to a place where we can put the emphasis we need to on helping municipalities meet affordable housing needs, helping to make New Jersey affordable for all New Jerseyans.
Throughout my public career, I have consistently sought to preserve and acquire open space. I campaigned vigorously to achieve a successful ballot initiative supporting a $200 million bond issue to protect open space and farms across New Jersey. I also signed legislation appropriating $80 million from the Garden State Green Acres Preservation Trust Fund to the DEP for the acquisition or development of lands for recreation and conservation. Land preservation is critical throughout our state. We must remain vigilant in our efforts to protect and preserve New Jersey's environmental resources. When our open spaces fall victim to development, they are gone forever. We cannot allow that to happen.
CHRISTIE: The round three regulations issued by COAH are perhaps one of the worst examples of this governor's lack of leadership. The Department of Community Affairs ignored the State Plan, the state's open space and farmland preservation goals, the Department of Environmental Protection's water and waste water plans and the Department of Transportation's transportation master plan and ordered municipalities across the state to develop new master plans to accommodate ridiculous growth projections. Even worse after admitting that their projections are wrong, they refused to withdraw their regulations and force municipalities to continue to spend property tax dollars on this process.
I will stop this ridiculous process and return sanity to our efforts to ensure that New Jersey residents have access to safe and secure housing opportunities. My urban plan focuses very strongly on our need to repopulate our urban centers, bringing residents, jobs and our existing urban infrastructure back together. It is wrong to think that our housing policy should mandate more housing developments in our suburban and rural areas than in our existing cities.
DAGGETT: A crucial part of my plans to make New Jersey more affordable is to develop a comprehensive strategy to build affordable housing. In implementing an affordable housing program, it will be consistent with the State Plan, it will conform with open space preservation goals, and it will complement state policy priorities, such as smart growth. When we build affordable housing, it will be located where jobs and public transportation are available, instead of in rural areas lacking both.
PROPERTY TAX PRESSURES
The current recession has dealt a flurry of blows to New Jersey municipalities. As the foreclosure and unemployment rates rise, the tax collection rate falls. As the economy stalls, new construction slows with it. As interest rates fall, the rate of return on our reserves falls with them. This year's state budget proposal would cut municipal revenue replacement funding by about $32 million. Though never welcome, cuts of municipal property-tax relief funding are no longer surprising -- certainly not at this time. However, they inevitably put upward pressure on property taxes. How will your Administration help local officials deal with these pressures over the next four years?
CORZINE: Municipalities need to seek local solutions to reduce the costs of government. I have put in place the necessary structural reforms for long-term change at the state level, while preserving property tax relief for our seniors and those who need it most.
The reality is that I have provided more direct property tax relief in four years than any other governor in New Jersey's history – nearly $7 billion put directly into the pockets of New Jerseyans. Last year, the average increase in property taxes across the state rose by the lowest rate in a decade – 3.7 percent, which is under the 4 percent cap required by law.
We must reduce the cost of government at all levels. The state must continue to do its part, in concert with our municipalities across New Jersey. All levels of government must find cost savings through innovations such as consolidation of services. For the last three and a half years, I have put the following critical pieces of the puzzle in place:
- Established a 4 percent tax levy cap on counties, municipalities and school districts to prioritize spending and bring down long term costs.
- Prioritized significant investments in education by increasing total aid by over $1.8 billion and enacted a new school funding formula that will finally distribute state resources more equitably. While the primary mission of the new school funding formula is aimed at improving educational opportunities for our children, it is also a property tax relief measure that has contributed to the decrease of the school tax levy. School taxes account for roughly 55 percent of local property taxes. Because of my $1.8 billion investment in our children's education, last year New Jersey experienced the lowest increase in the "school tax levy" in more than 10 years. Prior to my administration, the school tax levy was 6 percent. Last year, the school tax levy was 2.65 percent.
- Incentivized shared services and consolidation, and eliminated the so-called "non-operating school districts." By merging with neighboring districts, students will receive the same quality education as before, and we will also begin to bring more rhyme and reason to our system of school districts across the state.
- Created new oversight positions, the executive county superintendents, which will replace the existing county superintendents and have enhanced authority to promote efficiency. The executive county superintendents will mitigate growth in property taxes by thoroughly reviewing all school district budgets, eliminating nonessential items and requiring shared service arrangements where appropriate.
It's not just about sending checks to our residents, who desperately need help. It's about taking a holistic approach – funding for education, fiscal reform and state government reform. This includes putting more funds into the pension, more than every other governor over the last 15 years – combined, and cutting 7,000 employees from the state workforce. These are major, difficult-to-achieve structural reforms that will have long-term benefits for all New Jerseyans.
More can be done. I intend to continue to work with municipalities to identify more opportunities for innovation to reduce costs to the taxpayers.
CHRISTIE: As outlined earlier, the revitalization of New Jersey's economy is critical to both the survival of the state and our municipalities. We must stabilize our communities by ending the spiral of foreclosures and developing stable employment to enable taxpayers to continue to live in this state, while we work tirelessly to reduce the cost of delivering necessary public services.
DAGGETT: The falling tax collections underscore the need to deal with state mandates as well the necessity to address the underlying cost drivers making government so expensive. Property taxes, not state taxes – local spending, not state spending – are the biggest problems. We need a governor willing to start talking seriously about reducing the real cost drivers of ever-rising salary, health care benefit and pension costs.
UNCOLLECTED SALES TAXES
As governor of a state still suffering the pangs of this economic downturn, do you consider the millions of dollars lost to the state from uncollected sales taxes which result from out of state transactions? What action would you take to urge Congress to close this loophole?
CORZINE: Maximizing tax collections is an issue of fairness that is very important to me. Earlier this year, I put into action a tax amnesty program which resulted in the reclamation of $725million in delinquent taxes. This reclamation led to the restoration of much needed property tax relief.
Uncollected sales taxes present two problems: the loss of tax revenue to the state and the loss of income to New Jersey businesses struggling in this economic crisis. I plan to continue to work with President Obama and Congress to craft a solution to this problem in order to level the playing field and ensure that New Jersey collects its fair share of the revenues that fund our most important programs.
CHRISTIE: The 2002 changes to New Jersey‘s corporate business tax contributed to the anemic private sector job growth that has afflicted New Jersey since those changes. This condition has damaged tax revenues for state and local governments. While I believe that New Jersey retailers deserve a level playing field, I also don't want to repeat the errors of 2002. New Jersey needs to be attracting new jobs, not chasing them away.
DAGGETT: The actual loss to New Jersey tax coffers from large out-of-state mail order houses is at least $1 billion – and growing every year. Failing to collect these sales taxes puts New Jersey businesses at a significant disadvantage – from large retail box stores to the small shopkeepers that make up the backbone of our municipal downtowns. The federal government, at one point, convened a task force to attempt to work out a system for taxing Internet sales and out-of-state mail orders to assure that taxes are collected on out-of-state purchases. As governor, I would push hard through our congressional delegation to enable these transactions to be taxed fully.
GOVERNMENT CONSOLIDATION
Current law allows for consolidation of municipalities, upon approval by local voters. There have been recent calls for the state to implement and mandate consolidation. What is your opinion? Based on that answer, what policies would you promote or oppose, as governor?
CORZINE: The issue of consolidation is a complicated issue and deserves careful thought, not knee-jerk reaction. We are in the middle of a nationwide recession and I think that consolidation is one area where municipalities can save money and provide much needed property tax relief. As governor I signed legislation creating the Local Unit Alignment, Reorganization and Consolidation Commission. The members of the commission must be given time to consider the issues associated with consolidation. Through initiatives like the SHARE program, I will continue to provide municipalities with the tools they need to identify cost savings through consolidation and shared services, working together with localities to identify how we can make New Jersey better.
CHRISTIE: The governor's approach, to mandate consolidation of schools and municipalities, to arbitrarily slash aid to communities based solely on population and to attack our history of local decision making is wrong for New Jersey. We obviously need to make many changes in how we deliver public services but we do not need to eliminate the hometowns that make New Jersey so special. I will work with our mayors to ensure that they have the regulatory freedom to deliver services in the most efficient manner, supporting shared services and consolidations where and when they make sense. I will work to ensure that we reduce the duplication and waste that occurs when all 1,600 local government entities compete to deliver the same service.
DAGGETT: We have been talking about consolidation of municipalities for many years and despite all the talk, very little consolidation has occurred, largely because of the state's regard for home rule. Instead of focusing on mandated consolidation, we ought to looking at expanded sharing of municipal services, which so many communities are already doing. The sharing of police dispatchers is a great example. Mandated consolidation, however, is a political hot potato that will not bear much fruit, and will not address the pension and health care benefits programs that are at the heart of New Jersey's fiscal crisis.
STATE SPENDING PRIORITIES
Education, transportation, equal opportunity, public safety, public health, economic security, economic development, environmental protection, promotion of New Jersey agriculture, promotion of tourism, regulation of the banking, insurance and real estate industries, children's issues, senior citizens' issues, and...oh yeah, property tax relief. The list goes on from there. Where is New Jersey spending too much? Where do we need to spend more?
CORZINE: Leadership is not about promises; it is about tough choices in tough situations. The 2009-10 budget is a collection of tough choices that reflect our shared values. The budget includes the following provisions:
- Provides significant property tax relief to all New Jerseyans, with more than one-half of the budget being dedicated to property tax relief. More than 500,000 senior homeowners will receive a rebate of about $1,300, while more than 100,000 senior tenants are eligible for a maximum rebate of $860. The budget also includes more than $525 million in unanticipated revenue from the most successful tax amnesty program in New Jersey history. The program made it possible to maintain property tax relief through rebates for working families.
- Maintains services for our most vulnerable citizens. The budget provides energy assistance via $71 million in funding for the Lifeline program and a $5 million increase in funding for an energy assistance referral program. The budget also preserves funding for programs that support New Jersey's veterans, including veterans' nursing homes and other support services. Also, $12.4 million of funding is provided to serve clients on the Division of Developmental Disabilities Community Services Waiting List.
- More than one-third of the budget is dedicated to aid for school districts to offset educational support which would otherwise be raised through local property taxes. In the 2009-10 budget, no district receives less funding than it did in 2008-09, and 171 districts will receive increases. Over four years I will have provided $43 billion in support of education, which is nearly 30 percent more than the previous administration and nearly 80 percent more than the last Republican administration.
- The 2009-10 budget makes college more affordable by imposing a three-percent cap on increases in tuition and fees at the public colleges and universities. The budget also makes it possible for more than 10,000 county college students to receive part-time Tuition Aid Grants, a 2.6 percent increase over 2009-10.
- Despite the difficult times, the budget preserves access to health care by maintaining current eligibility criteria and copayment levels for Medicaid programs. The budget makes available universal access to health care for all our children, eliminates premiums charged to economically disadvantaged children in the NJ Family Care program and maintains $605 million in funding for charity care.
Like most New Jerseyans, I've spent the last four years holding firm to our core values. The tough choices I made have placed New Jersey in a position to be in the lead as the country emerges from the current economic slump. We have put ourselves on the road to economic recovery, and we will come back stronger than ever from this setback because we will have learned how to do more with less. New Jersey will climb out of this recession stronger, leaner, and more efficient than before.
CHRISTIE: We need to ensure that New Jersey has a financially secure future. We must balance our budget in real dollars, just as every mayor does every year. We cannot continue to have illusions of balanced budgets and make promises that cannot be kept. This may mean that popular programs or services have to be changed or reduced. We must review every single area of expense and every service that is provided to ensure that it is absolutely necessary and being provided in the most efficient manner.
DAGGETT: As I have previously mentioned, we have to look at the entire cost structure of government at every level. While we do so, we must take steps to end corruption of the system that occurs under the cover of law: We must end the double-dipping, pension padding, dual office-holding and other abuses that have increased the cost of government and fostered widespread cynicism among voters. As for where we need to spend more, we must invest in higher education so that we can compete in the new green economy when the current recession ends. We will expand state investment in promoting tourism and travel, our state's second largest industry. We will end raiding of tourism funds, and we will build on our many natural assets and advantages to promote tourism.
– TOM HESTER SR., NEWJERSEYNEWSROOM.COM
