| The Joint Legislative Committee on Government | | | | departments in their town are governed by civil |
| Consolidation and Shared Services held its first | | | | service rules. Home rule has its virtues but at |
| meeting on 8/806. Senator Robert Smith the | | | | what cost will property taxpayers say the hell |
| Committee's Co-Chairman said "home rule has | | | | with home rule. At some point coercion to |
| lead to New Jersey having the highest property | | | | consolidate is not coercion if it is the will of the |
| tax burden of any State in the United States". | | | | people said Senator Smith of the committee. Has |
| However, he said that their is no single silver bullet | | | | the property tax burden on home owners in New |
| to solve New Jersey's excessive property tax | | | | Jersey reached the breaking point so that New |
| burden. Nevertheless, the committee is charged | | | | Jersey legislators and the governor will favor the |
| with coming up with a legislative action plan to be | | | | big stick approach of mandatory |
| submitted to the Legislature.Senator Smith | | | | consolidation?Basically, property taxpayers want |
| believes New Jersey should look to states that | | | | services they can afford, service levels that will |
| rely on county school districts, instead of the local | | | | maintain the character of their towns that support |
| administration in New Jersey that has produced | | | | the values incorporated in their homes which is |
| more school districts than towns. He called it the | | | | their largest source of wealth in most cases. |
| most inefficient system in the country. In an | | | | People also want their services delivered in the |
| August 9, 2006 Asbury Park Press article called | | | | most economical way possible. Senator Smith said |
| "Sharing Services May Not Pay Off"a New Jersey | | | | to reduce New Jersey's average property tax on |
| School Board Association spokesman said the | | | | home owners to the national average will take a |
| current law provides that if school districts merge, | | | | very big vision answer.Tom Hester in an Asbury |
| the larger district's union contract is to be the one | | | | Park Press article on 7/3/06 called "Some In N.J. |
| used --- even if its salaries are more generous | | | | May Be Big Loser"said a 2003 Rutgers University |
| and there fore costlier to taxpayers.Testimony | | | | study found that reducing the New Jersey's 616 |
| before the committee reported that the State | | | | school districts by half would save $365 million |
| has 1,389 different entities that can levy property | | | | after four years, doing little to cut the $20 billion |
| taxes, including municipalities school districts and | | | | collected annually in the New Jersey property tax. |
| fire districts. What struck me after listening to the | | | | Hester went on to quip that the State has set |
| testimony given to the committee about the | | | | aside $600 million in the current year's State |
| history of consolidation in New Jersey is the | | | | budget to cut property taxes, but it would have |
| disjointed, fragmented, locally driven parochial | | | | to cut property taxes by $6 billion to put itself at |
| measures that have dragged the State into its | | | | the national property tax average for the |
| current State of law and practice regulating | | | | average home owner.Senator Joseph Kyrilos, Jr. |
| consolidation.Ultimately, I believe there is not | | | | noted at the committee meeting that in New |
| enough political courage, legislators realize that | | | | Jersey 50,000 people have ben added to the |
| forcing consolidation will likely cause them to lose | | | | government payroll over the last five years while |
| their job, This is especially true if the State uses | | | | 120,000 business jobs have been lost. I think his |
| the stick approach and forces consolidations that | | | | point was you have to be careful about trying to |
| at best "over time" saves only 10% to 20% in | | | | extract more taxes from the business |
| costs and therefore reduces property taxes by a | | | | community. Others at the committee meeting |
| like amount. What is worse is that consolidation in | | | | noted that property taxes in New Jersey have |
| some cases could wind up costing more!I am | | | | risen three times faster than personal income in |
| waiting for the discussion to commence on which | | | | New Jersey over the last five years.Testimony at |
| local municipal services are essential local | | | | the committee hearing from administrators in the |
| government functions and at what cost. Further, | | | | front line of consolidating local government |
| if they do not belong at the municipal government | | | | services said that consolidation is not the panacea |
| level then which government level should fund | | | | to New Jersey's excessive property tax burden. |
| them? I believe New Jersey will shift certain local | | | | Those administrators said after 30 years of |
| government and school functions to a higher level | | | | attempting various consolidation laws, consolidation |
| of government in the State and establish | | | | is just a finger in the dam. Further testimony at |
| appropriate cost and service levels. District schools | | | | the hearing reported that New Zealand went |
| consolidated at the county level, the prosecutor's | | | | through a government upheaval and accomplished |
| office, county jails, county school superintendents, | | | | a 20% reduction in local government employees |
| moved to the State level. But, this represents a | | | | and reduced their over 600 government units to |
| very daunting task for a legislative committee to | | | | 80. Apparently the lesson from New Zealand is to |
| assemble into a legislative action plan by | | | | go after the big buck items. If consolidation is just |
| November 15, 2006.Why do New Jersey residents | | | | done on the margin then it will represent nothing |
| cling to the concept of home rule? It is because | | | | but a castle of sand --- a lot of work undone in a |
| they like their local school whose teachers and | | | | moment with the next wave of property tax |
| principal they know. They like knowing the people | | | | increases.Biography: Gerald ‘Jerry' Dowgin |
| who serve on their local planning and zoning | | | | "The Property Tax Doctor" and the author of the |
| boards, they like their local recreation programs | | | | Homeowner's Assessment Review Guide ( a |
| and fear that under consolidation they might be | | | | former tax assessor worked in the field of public |
| spirited off to some other venue if local control | | | | finance at the State and local levels in New Jersey |
| was lost. Some residents in small towns have built | | | | for more than three decades until his retirement |
| up a report with their local public works staff to | | | | in 2001. As a Supervising Tax Analyst in the |
| get their roads plowed first ... so that their | | | | Office of Research and Statistics in the Division of |
| husband can get to work on the midnight shift. | | | | Taxation in the New Jersey Department of |
| Other like the patrol car coming by once a day, | | | | Treasury he worked principally on local property |
| or the fact that the local police are the first to | | | | tax issues. Then he joined the Office of |
| arrive when there is the need to call an | | | | Legislative Services (OLS) in 1983 and served as |
| ambulance.These are the items that build | | | | the Secretary to the New Jersey Property Tax |
| character into a community that people want to | | | | Assessment Study Commission for four years. |
| retain. I believe that generally people do not care | | | | While working in the OLS, Local Government |
| who the business administrator is, or who the | | | | Section he researched, drafted, and estimated the |
| assessor is, what office handles the collection of | | | | cost of the Senior Property Tax Freeze Bill which |
| taxes (but lets not have to drive to the county | | | | was signed onto law and worked on legislation |
| seat to pay our quarterly property tax bill). I do | | | | that became law that virtually stopped the tax |
| not believe people generally care about whether | | | | assessment practice of "Spot Assessments" in |
| their town has civil service or not. I would venture | | | | New Jersey that had treated many property |
| to guess most residents do not even know which | | | | taxpayers unfairly. |