NJ mayors feel squeeze of tax cap, rising costs

There's an article on-line today at the Asbury Park Press's website (posted below) talking about about how mayors all throughout the state, are crying that they are under financial pressure due to Governor Christie's 2% cap on property taxes.  Local expenses are rising faster than 2% annually and there isn't enough revenue coming in to offset the rising costs of health insurance and other essential items in their budgets.

The League of Municipalities President Janice Mironov,.herself the mayor of East Windsor, is once again calling on the state to return the $700 million worth of fees collected from utility companies each year for equipment and infrastructure located on municipal land to the municipalities, instead of having it added to the states's general budget  fund (this is something that I've heard Middletown's former mayor Tony Fiore, cry about meekly last year to no avail).

Instead of crying about the 2% cap and it's impact on local budgets, there is a  very simple way for municipalities to get around the "squeeze" of the 2% cap on their budgets. The problem is  however, local governing bodies are to afraid to attempt it.

All that local municipalities need to due is present their budgets to the residents and allow them to vote on whether or not to approve a budget that would increase the local tax rate by more than 2%, just like Brick Township did last year.

It was an ugly, but necessary process that raised the local tax rate by 12%  in order to prevent the town from outsource garbage collection, paving and other municipal services. Mayor Stephen Acropolis (a Republican) had to defend  and sell the large tax increase to the residents, but when he took the time and spent some political capital to explain that the average property taxes bill would only increase $36 dollars, as opposed to nearly $500 a year for private garbage collection, residents were smart enough to see the benefit of going over the 2% cap.

An added benefit to increasing the tax rate above the 2% cap for Brick resident was the fact that the 2011 increase stabilized the tax rate and no increase was needed for 2012.

Putting the municipal budget up for referendum, to allow residents to vote on it's passage is the democratic thing to do. It allows residents to decide for themselves what services are important to fund and which services aren't. Yes, it is risky for local leaders to stick their heads out and defend higher taxes, but when you present the alternatives in a common sense manner and allow residents to make the decisions of what's important or not important to fund, it give politicians cover from the wrath of the voters (or political opponents for that matter).

TRENTON — Mayors throughout New Jersey are telling lawmakers they’re facing a financial squeeze. 

Gov. Chris Christie’s budget proposes keeping aid to towns at the same amount as this year.

But League of Municipalities President Janice Mironov says towns’ costs are rising higher than the 2 percent cap that Christie imposed.

Mironov says costs for the state health insurance plan are going up 9.2 percent and other government-imposed fees are also set to rise.

The East Windsor mayor renewed her plea to the Senate Budget Committee Tuesday that a portion of the $700 million or so utilities pay each year to locate equipment and infrastructure on municipal land be returned to the towns.

As of now, the energy fees go into the state’s general budget fund