Convention on taxes still a possibility Lawmakers consider 'Plan B' to lower levies Friday, October 20, 2006 • BY ROBERT SCHWANEBERG • Star-Ledger Staff Lawmakers searching for ways to cut property taxes turned their discussion yesterday to their backup plan in case they fail: calling a constitutional convention to let citizens elected as delegates tackle the problem. How a convention would be convened was yesterday's topic for the Joint Legislative Committee on Constitutional Reform and the Citizen's Property Tax Constitutional Convention. Although consideration of a convention is part of the committee's charge, some members described it as an alternative that would be implemented only if they cannot lower property taxes through legislative action. "I don't like the idea of having a convention," Sen. Fred Madden (D-Gloucester) said. "If we fail in what we are doing here, the people of New Jersey need to have that Plan B still out there." Somerdale Mayor Gary Passanante, speaking for the New Jersey State League of Municipalities, urged the committee to pass legislation calling a convention, just in case. "We see a convention as a spare tire, as an emergency flare," Passanante said. He said lawmakers could pass legislation calling a convention while continuing to work on their own solution. If they succeed, he added, the convention need not meet or do anything. Arthur Maurice, first vice president of the New Jersey Business and Industry Association, said a convention should be avoided at all costs. He predicted the "special interests" would get their members elected as delegates, producing "a runaway tax convention led by the public employee unions." Assemblyman Richard Merkt (R-Morris) added, "There is serious concern about calling a convention. I do believe it would be dominated by special interests. No one has more to lose." No one who testified yesterday advised lawmakers to give up on property tax reform and hand the job over to a constitutional convention. "We want the Legislature to do it," said William Schluter, a former Republican state senator who is co-chairman of Citizens for the Public Good. But Schluter, one of the leading proponents of a constitutional convention, added, "I don't know that the Legislature is going to tackle the problem with enough quantifiable savings to meet the public's need." Two years ago, a 15-member task force headed by Rutgers University professor Carl Van Horn produced a blueprint for calling and holding a property tax convention with the power to propose statutory as well as constitutional changes. Such a convention would be "unique" in American history, according to Peter Kelly, principal counsel to the nonpartisan Office of Legislative Services. Over the vigorous dissent of Senate Minority Leader Leonard Lance (R-Hunterdon), the Van Horn commission also recommended the convention be limited to addressing how the state raises revenue with no power over spending. It reasoned that reforming taxation was in itself a daunting challenge. Yesterday, Lance and Merkt, the two Republicans on the constitutional reform committee, insisted any convention must be empowered to address state spending. So did Gregg Edwards, president of the Center for Policy Research of New Jersey. "It needs to look at spending. Otherwise, over time, all that relief will get eroded," Edwards said. Kelly said in order to call a convention, the Legislature would have to pass a bill by majority vote and Gov. Jon Corzine would have to sign it. Empowering delegates to propose statutory changes would require a temporary amendment to the state constitution, and the November 2007 election is the earliest that could be done, Kelly added. He said the convention could be approved and delegates elected at the same election. Delegates would then convene during 2008 and submit their proposals to the voters. "November 2008 would be the earliest point that changes could take effect," Kelly said. But Lance said it might be possible to hold a convention as early as next year if it is empowered to propose only constitutional -- not statutory -- changes. There are currently four special legislative panels studying ways to control government costs and reduce property taxes. They are to present recommendations by Nov. 15. Robert Schwaneberg covers legislation. He may be reached at rschwaneberg@starledger.com or (609) 989-0324. © 2006 The Star-Ledger. Used by NJ.com with permission.