Sunday, May 30th, 2010
For those who may have missed it, I have advocated no tax increases this year. It is unconscionable in this economy that taxes will rise. If government can’t find it within its ability to hold taxes flat (or cut them) now, it is a certain sign that those in charge need to be ousted. Governor Christie is working his butt off to keep the state’s cuts from causing the local taxes from increasing.
Cumberland County is skirting the line. It has introduced a budget that it can claim holds taxes flat. One would think that is good enough. It is not.
While the levy remains flat under their plan, it is not for the taxpayers. Ratables continue to tumble in the state’s poorest county. So, while the freeholders will collect the same amount of cash from taxpayers as they did last year, it will be more from those of us who pay taxes because the base has shrunk. In other words, taxes will increase.
The freeholders have not cut enough. I recognize that there have been cuts, but they cannot hide behind not spending a dime more than last year if taxes will increase on those who pay them. Not this year. Cut more.
No one’s property taxes should increase a dime this year, Freeholder Sheppard, because of your spending.
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Saturday, May 22nd, 2010
It may be in a pretty little box, but it’s still a tax increase.
Cumberland County Freeholder Bill Whelan announced that a 1.4¢ tax increase is coming.
“I think we need to maintain the levy at last year’s level — which means we need an increase of 1.4 cents,” Whelan said, adding, “I don’t think people are in the mood for more.”
The quotation is telling on many levels.
First, it’s a tax increase. Just the other day Governor Christie announced there would be no tax increases in New Jersey this year. Sure, he was talking about state taxes. Taxpayers do not differentiate.
Second, notice how Whelan acknowledges that taxpayers are not in the mood for raising taxes . . . as he announces a tax increase. That’s audacity!
Third, Whelan is firmly in the “government workers” camp I discussed the other day. Whelan “thinks” we “need” to raise taxes to keep the machine rolling budget balanced. Of course, cutting spending would accomplish the same result.
Instead of keeping the levy at the same amount, how about freeholders keep the tax bill for the taxpayer at the same amount as last year? It’s a difference of keeping the machine running and consideration for the taxpayers.
Finally, The Daily Journal buries the tax increase under the heading Cumberland prepares to lay off 23 employees. Layoffs are news . . . as are tax increases.
I’m not in the mood for a tax increase this year under any circumstances.
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Friday, May 7th, 2010
For a few years I left the classroom to be a technology coordinator for my school district. It was a job I enjoyed and at which I excelled. All the while, I knew my position was always tenuous. It’s not that my work wasn’t appreciated, it was that funds to pay for the position came from the state via the Abbott decision. Any reasonable person could see that those funds would dry up at some point. When they did, the position would be eliminated. When money began drying up with flat funding from Trenton a number years ago, out I went.
For years municipalities have funded police and fire employee salaries with Urban Enterprise Zone funds. Districts are created that permit businesses with more than 20 employees to charge half the state income tax on purchases and services. The sales tax is then kept in the community. That money is then used to help businesses. I wrote about UEZ four years ago.
Millville has been using some of those UEZ funds ($500,000 annually) to fund police and fire officers. Now that funds are tight (UEZ funds have been commandeered for the balance of the year by state government), Millville is faced with how to pay these officers.
With no UEZ funds available for the salaries, the only other “revenue” Millville has is the general fund. That fund has been promised to be flat this year by the City Commission. No one wants to raise taxes in this climate. Indeed, it would be political suicide.
So, Millville is faced with losing nine police employees. The police union is understandably not pleased:
“We’re willing to work with the city,” he said. “They’re putting the deficit all on the city employees. I don’t want to see the department go down the drain.”
That is certainly not fair! Reasonable people could see that if these funds ever dried up so would the salaries. It is that time.
Who is responsible for funding the salaries through UEZ?
No one desires reducing our public safety. The number of shootings in town just this week gives residents pause.
The thing is, raising taxes to make up for the bad politics that created this situation is not a reasonable solution. Funding salaries out of UEZ money may have been legal and expedient, but it wasn’t smart. The town is now in a bind. It is wrong to frame the issue as an either/or scenario even if that is how it is played out.
Again, who created this situation?
Last spring Commissioners Quinn and Derella touted their 12 year legacy as to why they should be re-elected. Likewise, Mayor Shannon spoke of his eight years in office. Together, the “Three Js” represented incumbency. Guys, if you want the accolades for what you did, you need to take the heat when it fails. Funneling UEZ funds for salaries has now caught up with you. I agree with your no tax increase stance. The flip side, however, is that you cannot take credit for the increased public safety force since it will decrease.
Perhaps these decisions reach back to when Mr. Finch was previously a commissioner. Does anyone know?
Unfortunately for Millville, Commissioner Vanaman, who up until now was perceived to be the fiscally responsible member, has come out in favor of at least a 6.5¢ tax increase to rectify the bad politics of his colleagues. As much as we desire all our police and firefighters, there is no justification for raising property taxes this year. This stance of his hurts his credibility in my eyes.
I want a strong police force and fire department. Funds should be permanent to support those departments. Making decisions to use tax “revenue” specially designed to generate business is not smart. This isn’t a new issue; we have all seen this coming.
Hold the decision-makers responsible.
Posted in New Jersey, Politics | 1 Comment »
Friday, March 19th, 2010
Millville’s Commissioner Joe Derella is a disappointment. As chairman of the Revenue and Finance Committee, Derella is responsible for crafting the city’s budget. Derella decries the difficulty in the job and then raises taxes.
Even those not paying attention have known that since Chris Christie was elected governor, cuts were coming. Yet, Derella acts as though the municipal cuts were a surprise. And what does good ol’ Joe propose? Why yes, he thinks another raise in local taxes is in order.
Millville Revenue and Finance Commissioner Joe Derella called the numbers “a disappointment,” adding they raise the potential for higher property taxes at the local level.
“You try to prepare for something like this, but we didn’t think (the cuts) would be this large,” said Derella, of the nearly $1 million reduction in aid to befall Millville.
“In Millville, we’re looking at a potential budget gap of $3.6 million. Now, add this to that, plus the loss of Urban Enterprise Zone funds.”
Derella doesn’t get it . . . not at all. Government spending is out of control. Cutting state spending only to have local spending increase nets the taxpayer absolutely nothing. But Derella has little to worry about. He was re-elected just a year ago, and by the time he is up again for re-election, folks will have forgotten the tax increase. This is the same modus operandi that Freeholder Lou Magazzu uses. There’s enough frustration among taxpayers, however, that there may be a backlash if Derella and company raise taxes again.
The first cut to the municipal budget should be any benefits the Commissioners earn. Derella uses a novacare.com instead of the millville.org address listed on the city’s web page. Certainly he should not be earning health benefits or paid the $4200 buyout for forgoing those benefits as a part-time elected official. Mr. Derella, what say you?
Tax increases cannot be the solution to the budget each year. When do we not have an increase in taxes? How about this year?
Posted in New Jersey, Politics | 3 Comments »
Monday, March 15th, 2010
The Bergen Record reports that Governor Christie will present a hard 2.5% cap on municipalities and every other facet of government. I have mixed feelings on this.
Obviously, I would be happy to keep Millville from appealing yearly to get around the current 4% soft cap. Government needs to be fiscally responsible.
My issue with Christie’s remedy is a constitutional amendment. Government needs to be prudent; it should not take the state constitution to do so. Obviously, the economy has tanked. A 2.5% annual increase sounds prudent today. But should/when the economy bounces back and “revenue” is flowing, 2.5% may very well be an impediment to government.
How about things remain the way they are and the state refuses to allow Millville bypass the law? That would seem a far better approach to me.
Christie is also reported to be looking at eliminating property tax rebates. Hallelujah! The property tax rebate program is nonsensical. Eliminating it is worthwhile.
I am alarmed, however, with some of the nuances that seem to be included with this proposal.
Christie will also propose converting the state’s property tax rebate checks into direct credits on homeowners’ tax bills, eliminating what was once considered an almost untouchable fixture of New Jersey government and politics because of its popularity among voters. Some homeowners may still receive a refund, but the envelope from the state treasury containing an actual check that has arrived almost every summer for 30 years would be gone.
. . .
It was not clear Saturday which residents would receive direct property tax relief through tax credits.
Rather than jerk around the money and spend the time, effort, and money managing a nuanced program, just make the money grab and be done with it.
Christie has stated multiple times he has no problem being a one-term governor. Only someone concerned with re-election would need to construct a piecemeal program.
Tuesday will be an interesting day. I am hoping not to hear a lot of gimmicks such as one-time freezes, etc. Large chunks need to be paired. I suspect it will be a mixed bag. I cannot see how Christie is going to make any pension payments this year. Underfunding the pension system does nothing to help out a financial mess. Since that is one of the biggest effects on the budget, shouldn’t the yearly promise be made?
We shall see what becomes of this baby. New Jersey needs leadership, not politics.
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