Page 22 - 40thAnniversaryNJPSA

During the McGreevey/Codey years (2002-2006), attention
3. Property Taxes and The Special turned to rising property tax issues, as the impact of the
Legislative Session - 2006 Whitman tax cuts grew. On June 6, 2006, with newly-elected
Governor Jon Corzine in office, Senate President Dick
Over time, our state leaders changed both in the Executive Codey and Assembly Speaker Joe Roberts announced “an
and Legislative branches, as did our state’s economic fortunes. unprecedented special legislative session” to grapple with New
With each cycle, the public’s perspectives and our politicians’ Jersey’s highest in the nation property taxes. At the close of
priorities shifted. that month, the first government shut-down occurred when
Governor Corzine and the State Legislature could not agree on
In the Christine Todd Whitman years (1994-2001), the a State Budget that contained a one percent sales tax increase
focus was on tax relief including income tax reductions, that by the July 1 statutory deadline. The proposed sales tax was
Republican majorities in the State Legislature enacted. The a thorn in the side of the Legislature seeking to cut costs
subsequent state revenue deficits impacted state coffers and instead. Ultimately dedicating half of the sales tax revenue
its ability to meet state obligations, including its obligation to property tax relief and half to state expenditures, the shut-
to fully fund the schools. Whitman’s husband, a Wall Street down ended. However, the fervor for property tax relief efforts
entrepreneur, developed a plan to borrow against the then only intensified.
well-funded assets of the public pension systems. This $2.8
billion pension bond legislation passed the Legislature despite On July 28, 2006, via legislative resolution, four specific joint
the concerns raised by NJPSA and other members of the legislative committees were established to grapple with the
public pension systems. To offset these concerns, a major underlying components of the property tax issue: public school
benefit was enacted for public pension members, the changing funding reform, government consolidation and shared services,
of the pension formula itself to the number of years of service public employee benefits reform, and constitutional reform
over age 55. Naturally, NJPSA supported this member pension with a potential for a Citizens’ Property Tax Constitutional
enhancement, but its availability to members was relatively Convention. These committees had four months to meet,
short-lived as future pension reforms would eliminate it for study a complex state issue, take testimony from witnesses
future generations of public employees. statewide, and develop recommendations for legislative