From NJ Spotlight:
SWEENEY FORGES AHEAD WITH STATE TAX POLICY REVIEW, NO INPUT FROM MURPHY TEAM
Major changes to the federal tax code recently enacted in Washington, D.C. may have significant and unexpected impact on the state economy, according to state lawmakers — particularly in a high-cost place like New Jersey. That’s why Senate President Steve Sweeney has ordered a broad review of the state’s entire tax and fiscal policy landscape, and he’s named well-known outside policy experts to participate.
Sweeney (D-Gloucester) yesterday named two dozen members of a special working group, made up of both lawmakers and these experts; they’ve been charged with coming up with ways to help New Jersey deal with any economic challenges the federal tax-code overhaul poses.
But that’s not all. Other areas will be subject to the group’s discussions, which will primarily only be held in private, according to Sweeney’s announcement. The group will look at everything from how New Jersey funds local schools and other government services, to what can be done to control high property taxes and stop residents from leaving the state for cheaper alternatives.
The effort will be led by state Sens. Paul Sarlo (D-Bergen) and Steve Oroho (R-Sussex), and Assemblyman Lou Greenwald (D-Camden). In addition to several other lawmakers from both parties, the working group also will include more than a dozen outside policy experts, including economist Mark Zandi of Moody’s Analytics and former state Treasurer Feather O’Connor Houstoun.
The formation of the working group comes just weeks before Gov. Phil Murphy is expected to put forward his first state budget message to a joint session of the Legislature. It also comes as Murphy and Sweeney have publicly disagreed about whether the new governor should go forward immediately with his plan to hike New Jersey’s top-end income tax rate on earnings over $1 million to bring in more revenue to fund core priorities like K-12 education and public-employee pensions.
In fact, such working groups are usually organized by governors, and noticeably absent from the panel assembled by Sweeney — who once considered running for governor himself — is a member of Murphy’s administration. It remains to be seen exactly how receptive the governor will be to any of the group’s findings once they are released; Murphy’s press secretary did not respond to requests for comment yesterday.
…
Sarlo stressed that this new effort is putting “everything on the table,” and Greenwald promised it would not be just an “academic exercise.” Oroho suggested the group’s eventual policy proposals would help the state deal with a potential crisis.“We are facing a crisis — a crisis of competitiveness, a crisis in housing values, and a crisis that undermines our prospects for future economic growth,” Oroho said.
In addition to Zandi and Houstoun, the experts from outside the Legislature are Dr. Joel Naroff, Naroff Economic Advisers Inc.; Dr. Michael Lahr, Rutgers Economic Advisory Service; Dr. Ray Caprio and Marc Pfeiffer, Rutgers Local Government Research Center; Richard Keevey, Rutgers University Bloustein School of Planning & Public Policy, and Princeton University’s Woodrow Wilson School; Dr. Henry Coleman, Rutgers University Bloustein School of Planning & Public Policy; Dr. Donald Moliver and Peter Reinhart, Monmouth University’s Kislak Real Estate Institute; Dr. Spencer Levy, CBRE Group Inc.; Ralph Thomas, New Jersey Society of Certified Public Accountants; Frank Chin and Ray Kljajic, American Public Infrastructure Inc.; Kurt Stroemel, H&RHS Financial Services; and Jerry Maginnis, accounting executive in residence at Rowan University.
…
“Blowing up the system, and putting it back together in a way that makes it work better, requires total discussion amongst people that can speak freely, and not be concerned that they’re going to be criticized until we get a product done,” Sweeney said.
My first first post.
Second
Third
Amazon HQ2 – Arlington, VA
What no catchy working group name name like SNJVT
Save New Jersey via taxation?
@richardhine
I’d rather be on the side of American kids than Russian bots.
Oroho is a Cerified financial planner. His input will be valuable.
Eliminate State Income tax.
Raise sales tax to 8%
Cap property taxes the exact same way Florida does it.
Business will flock to NJ, property values and incomes will soar.
Teachers and cops will no longer make $250k a year after benefits. BooHoo. Who cares.
…but it’ll never happen… and NJ will keep going down the toilet.
“I’d rather be on the side of American kids than Russian bots.”
Seeing that this is what passes as humor for the Democrats. I’m not surprised SHE lost.
“cerified” is that a new age lobotomy?
D-FENS says:
February 21, 2018 at 7:49 am
Oroho is a Cerified financial planner. His input will be valuable.
This blog is circling the drain. The administrator sees fit to spank the kielbasa for several days while the basic functioning of the site is frozen. His haughty pontificating is endless about his seven figure compensation while happily sending masses of hardworking father’s to the soup kitchen. Heaven forbid you come walking down the street when the pierogies are boiling because the stank of cabbage will reduce you to tears……… the only saving grace was being spared the puss spewed forth by Moronman(TM).
I’ve never seen a party so xenophobic make anti-xenophobia their primary platform.
relevant
https://www.cnbc.com/2018/02/20/11-amazon-hq2-final-cities-in-states-lacking-lgbt-discrimination-laws.html
The Original NJ ExPat says:
February 21, 2018 at 3:45 am
Amazon HQ2 – Arlington, VA
You don’t need to convene a special panel to determine what’s wrong with NJ. I’ll do the work for them.
1. Stop paying for schools through property tax collection. Do it through sales and income tax.
2. Fix Abbott. Each district gets 3 years at max spending level to show improvement. If money is squandered, the gravy train stops.
3. Ban all unions from lobbying political officials and from advertising political positions (no endorsements allowed).
4. All new public hires move to 401K. All existing pension collectors split what’s left in their pensions. No cola adjustments. State will make required payments at a realistic level. No more paying in for $200,000 and collecting $2 million.
5. Public workers choose their healthcare plan much like the private sector. If you want Cadillac coverage, you are going to pay dearly for it.
6. Put a true 2% cap on all property tax increases. No exceptions.
7. No more PILOTs. No more Builder’s Remedy.
8. For real savings, fold the police, fire protection and municipal services into the county and remove them from the towns. For ultra-mega savings, regionalize the schools at the county level two.
9. Tax weed and prostitution.
My work is done here.
Lib,
You’re proposals are a home run. I thoroughly agree. It’s so blatantly obvious yet it will never happen.
How do you come up with this? If this was the case, the system would be broke over night. Pure propaganda. Let’s see….to get 2 million dollar payout….need to get 100,000 a year and collect for 20 years. Who the hell is getting a 100,000 pension, except a couple chosen few. Literally, prob .01% and you paint this brush for all.
“No more paying in for $200,000 and collecting $2 million.“
5. Public workers choose their healthcare plan much like the private sector. If you want Cadillac coverage, you are going to pay dearly for it.
This narrative needs to stop. The days of free Cadillac benefits have gone bye bye. You make some valid points, but we are already required by law to pay dearly for it and have for 6 years now.
After hearing about Murphy/Gottheimer’s scheme to make property taxes into charitable donations…is anyone surprised that Murphy’s time at Goldman Sachs coincided with the mortgage crisis?
Murphy’s “charity trust” makes himself one of the biggest benefactors in this tax avoidance scheme ….
Cumon folks give our Wall St banker a chance. We are after all just getting warmed up! The proposed “People’s Republic Bank of New Jersey” where all those “charitable” WINK! WINK! — tax donations will be stored is good for at least 300 Billion in lending to the state, county and local government agencies. Just think of all the salt domes and bike lanes we can build with that money!
D-Fenz – Thought the same thing the first time his stupid financial alchemy was introduced. I really don’t think he’s terribly bright. Between his mistakes in Germany and then posing with that picture of Christie on the closed beach, I wonder how someone with such lack of couth could get to where he is now?
BRT – Point taken, but I could have sworn there were still some issues out there regarding how cheaply educators were getting their insurance for (though I know they pay for it now). Will dig a bit more, but I generally trust your take on these things.
‘Existing-home sales tumble at the fastest pace in more than 3 years.’
Was this covered?
BRT:,
I just did a comparison using the calculator on the state benefits website. Though it’s very difficult to compare since the numbers would never sync up between the plan I’m on and what the state offers. You are still getting a much higher level of care than I am at a significantly lower cost. Especially in the first four years of your employ and doubly so if you are not highly compensated. Even when I plugged in my salary and the most similar plan deductible-wise. You would spend $100 more a month, but your max out of pocket is $4,000 less and your copays are $10 less, etc. So, I wouldn’t call it a Cadillac plan. Perhaps we’ll call it a Honda plan. But, when you think about how many people this plan is covering and the better pricing that the state must get for insurance than my company does. You can see how much higher a level of insurance it must be. I can only imagine how much it cost back when educators didn’t contribute.
Saw a story on a local news channel that starter homes in north Texas have appreciated 90% over the last 5 years and affordable housing is now a concern in this area. Sounds bubbly.
Bagholder,
This blog does not talk RE anymore. Personally, I think the NYC metro area will be rocked in next few months as buyers stay on sideline while trying to figure out tax law impacts, higher rates and now stock market volatility. My neighbors now over month on market with no takers. We shall see.
Like I said, only a matter of time before these prices go up and make jersey seem like a bargain again. I wouldn’t call it a bubble, this is what happens when you have population growth like Texas has experienced. The problems from this population growth will make jersey’s problems look like nothing. Jersey never experienced population growth at the levels Texas has experienced in the past 10 years.
Hold my beer says:
February 21, 2018 at 11:22 am
Saw a story on a local news channel that starter homes in north Texas have appreciated 90% over the last 5 years and affordable housing is now a concern in this area. Sounds bubbly.
Called no inventory combined with more and more people just staying in place.
Bagholder says:
February 21, 2018 at 10:49 am
‘Existing-home sales tumble at the fastest pace in more than 3 years.’
Was this covered?
NJ 101.5 had a report on yesterday saying that state tax revenues in NJ, have still not approached pre Great Recession levels. I’d like to see the numbers on that.
So basically, you won’t be satisfied until each teacher is paying $12k out of pocket? As far as how much did it cost when we didn’t contribute, I have an exact figure for you. The answer is $8k less. So basically, when we started contributing, Horizon has systematically upped rates accordingly so that the district/taxpayer gets zero% return on that and they get everything.
Welcome to my world!
Pumps,
What’s so crazy is there are still ranches and farms in a lot of these towns and cities. It’s not like the price surge is concentrated in the urban areas that are already built out and only low and high rise can be done as fill in. Even Fort Worth has lots of small ranches. It’s so bizarre. And once you get past the dfw ring there are huge tracts of raw land.
BRT,
Just busting your chops here mostly (or trying to). I agree with you that it can be removed from the list of low hanging fruit as the difference is small enough to not have a major impact compared to most of the others on the list. And the truth about this so called study is that regardless how many studies are performed. As long as the lobbies continue to be such active participants in NJ government. Nothing will change. This is the third study of which I am aware of.
Gottheimer want to make property tax into charitable contributions for 2 reasons, 1) he pays $35,000 in property tax and 2) his puppetmaster the National Association of Realtors paid Gottheimer more than $1 million in campaign contributions to do whatever the NAR wants him to do.
Lib: the cost of my wife’s family plan is $36,000 a year…. it is considered the “base level” plan, also known as NJ Direct 15………. how that is split with the township is based on compensation…. the teacher kicks in somewhere between $1,000 to $13,000, depending on their comp……to be clear…. the highest paid teachers in Colts Neck have Phd’s and make $96K
Libturd says:
February 21, 2018 at 11:12 am
BRT:,
I just did a comparison using the calculator on the state benefits website. Though it’s very difficult to compare since the numbers would never sync up between the plan I’m on and what the state offers. You are still getting a much higher level of care than I am at a significantly lower cost. Especially in the first four years of your employ and doubly so if you are not highly compensated. Even when I plugged in my salary and the most similar plan deductible-wise. You would spend $100 more a month, but your max out of pocket is $4,000 less and your copays are $10 less, etc. So, I wouldn’t call it a Cadillac plan. Perhaps we’ll call it a Honda plan. But, when you think about how many people this plan is covering and the better pricing that the state must get for insurance than my company does. You can see how much higher a level of insurance it must be. I can only imagine how much it cost back when educators didn’t contribute.
So when do we terminate NAFTA? This month or next? Place your bets.
Chi… $10 copays and no deductibles? That sounds pretty good to me. We are only offered a high deductible plan. And pay $800 monthly for the family coverage. A soon as D gets his first MRI for the year, I am out $21,600 when you include the cost of my insurance for the year.
Bystander I don’t disagree especially so in the suburban areas.
Sorry I’m all across Europe with a shit schedule, shit WiFi, working pretty early/late and Jetlagged.
These teachers today they need combat pay.
So you are paying less for coverage than some teachers? Should they start complaining how they make less and are forced to pay more?
Libturd says:
February 21, 2018 at 12:57 pm
Chi… $10 copays and no deductibles? That sounds pretty good to me. We are only offered a high deductible plan. And pay $800 monthly for the family coverage. A soon as D gets his first MRI for the year, I am out $21,600 when you include the cost of my insurance for the year.
Teachers….everyone’s dream job till they actually do it.
I think teachers have the highest turnover in any profession…. wonder why? Why would anyone leave a profession is so well compensated like the dreamers suggest.
Two teachers I know are off all week for no apparent reason.
Maybe they got the flu and are enjoying their excellent healthcare?
:P
I wonder how many of Pumkin’s teachers committed suicide.
Shut up! Go drown your sorrows in the Club Lounge…….. what is Jetlagged (capitalized)? Is that a new airline?
Grim says:
February 21, 2018 at 1:50 pm
Sorry I’m all across Europe with a shit schedule, shit WiFi, working pretty early/late and Jetlagged.
I know a lot of teachers who have left to have kids/start a family. Could that be why?
The Great Pumpkin says:
February 21, 2018 at 3:10 pm
I think teachers have the highest turnover in any profession…. wonder why?
The healthcare premiums I paid equated to a 6 tear wage freeze. For some it was a permanent paycut. I think enough concessions have been made. Horizon and Aetna are the real crooks fleecing you.
Yes of course. The real issue is fire and police, but THEY are heroes. Especially the ones who work in the tiny towns where fires are about as common as asteroid strikes and the roughest thing the police have to do is act as crossing guards.
Though, I do love how the masses gang up on the teachers.
And when these small town police have to play crossing guard they feel it’s beneath them!!
I risk my life going to work everyday too…driving down Rt. 78.
Ha ha.
So when do we terminate NAFTA? This month or next? Place your bets.
I don’t know but I can’t think of a single measure that would raise wages more than that. Tax imports from Asia, terminate NAFTA, shutdown overseas military bases, slash the pentagon budget by 3/4….and default on the national debt. All America’s problems are solved.
No the school is closed. They work half the year. A lot of the phds are phony too. Teachers are very well compensated for their time.
Stu, teacher pay and benefits are not the issue it’s administrators(pay aand number), consultants and of course pensions which the government cannot be trusted to administer responsibly. Rather than play this silly game with the charitable contributions(setting up charitable vehicles might be a worthwhile endeavor, the tax credit idea is nuts) they should add a payroll tax to fund education, the funds should be distributed evenly based on students per school. That would help reduce the school funding burden for all towns and would maintain deductability. And yes goodbye abbott, pensions, cola, etc all needs to go no more 25k per student schools in Newark.
The PhD on staff in Colts Neck is legit, and she busts her a%% too….. a savant in Math.
The big earners are the administrators…..the principals, superintendent, and others all clock in between $130,000-$160,000……at least the highest paid is also probably the best of the lot, but that is sheer coincidence…..
nwnj says:
February 21, 2018 at 5:01 pm
No the school is closed. They work half the year. A lot of the phds are phony too. Teachers are very well compensated for their time.
Ummm.. cut back spending?? government is so stupid.
government = “let’s increase taxes on Citizens to create thinktanks on how to cut taxes… we’ll pocket 90% of increased taxes as overhead”
Damn trumpers just ruining this country. Had a friend that sent me this conspiracy crap the other day to prove to me that mainstream news is “fake news.”
A Conspiracy Theory About A Stoneman Douglas Student Reaches No. 1 On YouTube – HuffPost
https://apple.news/Ayf0p4hDyROyoEjD8gNXmWA
Agreed.
In order to become a cop in these small rich towns…..have to know someone. Price to pay…you are their (whoever runs the show) b!tch for life. They say jump, and these guys say how high. Nothing free, always a cost.
Libturd says:
February 21, 2018 at 4:40 pm
Yes of course. The real issue is fire and police, but THEY are heroes. Especially the ones who work in the tiny towns where fires are about as common as asteroid strikes and the roughest thing the police have to do is act as crossing guards.
Speaking of nafta, I haven’t got my poop knife yet.
Possibly, but I think has more to do with how bad the job is. Not much respect or empathy for the profession. I mean who wouldn’t want a job where you get blamed for everyone’s problems and if you open your mouth……you only work half year and are overpaid, just be happy you have a job.
AJ says:
February 21, 2018 at 4:25 pm
I know a lot of teachers who have left to have kids/start a family. Could that be why?
I went to a little hole in the wall Mexican restaurant over the weekend and haven’t had the need of a poop knife since
Exactly as I stated in my post at 11:34.
“Sales of previously owned U.S. homes in January experienced their sharpest annual drop in more than three years as low inventories and rising prices and interest rates took a toll.”
“Folks are looking at these … hot markets. Prices are going up, there are fierce battles and all these homes are going for more than the asking price,” said Alex Villacorta, executive vice president of HouseCanary, a housing data and analytics startup. “If you have a home at a really good mortgage rate, you’re less inclined to give that up to get into a market that feels like 2004.”
Home Sales Post Their Sharpest Drop in Three Years – The Wall Street Journal
https://apple.news/A0Az5ZykqQQGbCnzeywtApw
A lot of the younger teachers keep slipping and falling into
Students’ dicks.