Anti-tax
conclave gains in Trenton
But convention faces uncertainty
in Senate
Tuesday, May 17, 2005 • BY TOM HESTER •
Star-Ledger Staff
A bill asking voters to approve an
unprecedented constitutional convention to consider ways to
reduce New Jersey's highest-in-the-nation property taxes
passed the Assembly yesterday, setting up a showdown in the
Senate, where its future is uncertain.
Backers of the convention, who say
lawmakers have failed to tackle property tax reform over the
past three decades, conceded that the issue may never reach
voters because of concerns from a number of groups and
senators, including acting Gov. Richard Codey, who is also
the Senate president.
"The Senate should maintain the momentum
for addressing the No.1 pocketbook concern of New Jersey
residents," said Assembly Majority Leader Joseph Roberts
(D-Camden), the prime sponsor in the lower house. "I would
rather see this legislation modified than have the flame for
property tax (reform) extinguished due to gridlock and
indifference."
With senior citizen homeowners who
support a convention crowding the Assembly gallery, the bill
passed the lower house 45-30. The vote, after more than two
hours of debate, was largely along party lines: Democrats
said a constitutional convention is the best way to tackle
the long-standing problem; Republicans objected because the
legislation does not allow for the convention to consider
ways to cut government spending.
The bill must be approved by the end of
the summer to get on the November ballot. However, Codey
does not intend to hurry it through the Senate.
"The governor, as Senate president, will
allow it to be heard in Senate committee and take the course
of action for bills," said Kelley Heck, his spokeswoman.
"However, he recognizes that there are concerns in the
Senate majority caucus about the fact that the current
version of the bill would not allow a convention to address
spending, and he shares this concern."
Senate Minority Leader Leonard Lance
(R-Hunterdon) said Republicans also want spending included
as part of a convention.
Under the legislation (A5269), if voters
approve a convention, delegates would be chosen during the
school board elections in April and the convention would be
held in the summer of 2006. The convention's recommendations
would appear on the November 2006 ballot.
The delegates would be allowed to propose
options such as increases in the state income or sales tax
or creation of new taxes to reduce or slow the growth of
property taxes. They also could consider limiting how much
property taxes residents could bear or how much property tax
revenue could go toward government spending.
Delegates could not, however, discuss
state, local government or school spending or public
employee salaries and benefits.
Cy Thannikary of Freehold, chairman of
Citizens for Property Tax Reform, who served on the state
task force that proposed guidelines for the convention, said
proponents will "lobby hard" for the Senate to pass the
bill. AARP-NJ will sponsor a pro-convention rally at the
Statehouse on June 16, he said.
The legislation is supported by senior
citizens groups, the New Jersey State League of
Municipalities and good government groups that collectively
have spent $1.5 million lobbying lawmakers since
2003.
But it is opposed by the state's largest
teachers union, the powerful New Jersey Education
Association, which is concerned about the potential impact
on teacher salaries and pensions, and state business
interests, which fear a shift in tax burden to businesses.
Opponents have made $1.01 million in campaign contributions
to lawmakers and spent $939,602 to lobby the Legislature
over the past two years.
Proponents said seven commissions have
studied property taxes over the past three decades, but
lawmakers have taken little action. In the meantime, they
said, property taxes have continued to skyrocket.
"The bill that is before us today is
designed to deal with the fact that New Jersey, to a greater
extent than any other state in the nation, relies on
property taxes to fund public services," Roberts said. "We
talk to our constituents and they are impatient with the
Legislature's failure to confront it."
Assemblyman Kevin J. O'Toole (R-Bergen),
a member of the task force, said a convention should be
allowed to examine government spending. "Property taxes have
never been higher and spending has never been more out of
control," he said.
Other lawmakers pushed for a special
session of the Legislature, rather than a constitutional
convention, to tackle property taxes.
Georgia Viscuso of Cherry Hill was one of
45 senior citizens from South Jersey who traveled to Trenton
to watch yesterday's Assembly debate. She said her property
taxes have risen $600 over the past two years.
"I have been in my home for 40 years,"
she said. "It has reached the point where I cannot survive.
My property taxes are $6,000 a year."
Not all lawmakers followed their party on
the vote. Three Republicans supported the convention:
Christopher J. Connors and Brian E. Rumpf, both of Ocean
County, and Bill Baroni of Mercer County. Two Democrats from
Hudson County voted against it: Louis M. Manzo and Anthony
Chiappone. Two Bergen County Democrats abstained: Joan M.
Voss and Alfred E. Steele.
Staff writer Joe Donohue contributed to this report.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
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