It's been said that the longest journey begins with a single step. On July 13, New Jersey took the first step on the long path to reform when Governor Chris Christie signed into law a 2 percent cap on annual property tax increases. The measure substantially lowered the previous statutory cap and reduced the number of exemptions allowed, but the new cap still allows local governments to raise taxes beyond the cap to pay for costs related to pensions, health care, emergencies, and increased school enrollment.
Now that the cap is in place, New Jersey needs to take the next step in reforming its budget and tax policies. The cost of government must be brought under control or else property taxes will continue to rise and burden New Jersey taxpayers. To reduce the cost of government, New Jersey needs to enact Governor Christie's "tool kit" for local government, education, and elections.
The tool kit is actually a package of 33 reforms that will help the government reduce its costs primarily by reforming public employees' salaries, benefits, and pensions. It will also help reduce the costs in public education. Among the reforms are a 2.5 percent cap on salaries and benefit arbitration awards, more service sharing in municipalities and public schools, revisions to layoff rules that restrict dismissal of highly-paid employees, more furlough authority for local governments, and limits on paid vacation and sick leave. You can find a complete list of the reforms here. In a state with 1,600 government entities and ever-increasing public education costs, these improvements to fiscal policy will go a long way toward bringing the cost of government down to a more manageable level and reducing the impulse to raise taxes. The legislation that would enact the tool hit has been introduced, so all that is left now is for the state legislature to hold hearings and votes on the reforms. We hope that the legislature does this sooner rather than later. Already, a coalition of groups, including NTU, has spoken out in favor of the tool kit's immediate adoption and momentum for passing the reforms continues to build.
New Jersey has taken the first step on the long path to reform. Now, the state needs to enact the tool kit to keep walking. Let's hope New Jersey's lawmakers, for the sake of the state's taxpayers, want to make this journey.