From the AP:
Governor reverses stance on reforms
In a sudden change of course amid heightening property tax reform tension between the governor and the Legislature, Gov. Jon S. Corzine on Sunday challenged legislative leaders to push forward plans to reform public worker benefits.
Corzine sent a letter to Senate President Richard J. Codey, D-West Orange, and Assembly Speaker Joseph Roberts Jr., D-Camden, objecting to comments they’ve made since Thursday, when Corzine sent another letter asking them not to push forward with the reforms. That angered legislators who had spent four months devising reform recommendations.
In the first letter, Corzine said changes to pension and health benefits for public workers were best left to contract negotiations, but Codey and Roberts said the move by their fellow Democrat made it more difficult to pass all proposed tax reforms. Legislators have devised 98 proposals to cut the nation’s highest property taxes.
In the letter sent shortly after 6:30 p.m. Sunday, which Corzine said he wrote “with serious concern,” the governor said he disagreed with Codey and Roberts’ comments.
“Nonetheless, if you continue to hold these views, I encourage you to lead the Legislature forward with the originally proposed pension reform bill, or alternatively, one that you judge will build the broadest consensus among your colleagues,” Corzine wrote.
Sunday’s late developments came as public workers planned a State House rally today to decry plans to cut their benefits. Some tri-county schools, including the Burlington County Institute of Technology and schools in Gloucester City and Cinnaminson, will close today because teachers are planning to attend the rally.
…
He also cited proposals to end “significant pension abuses” by elected and appointed officials, reforms Corzine has always pushed the Legislature to adopt.The governor told Codey and Roberts “to make your best judgment and move forward,” but made no promises about signing any bills.
Codey did not say whether he would push forward with the initial bill, and Roberts could not be reached for comment Sunday night.
“The time for sending letters needs to stop. This is turning into St. Paul and the Corinthinians,” Codey said. “We need to get together, sit down at a table and work out our differences in a meaningful and productive way, keeping in mind our goal to provide real property tax relief to residents.”
From the New York Times:
War of Words in New Jersey on Tax Relief
Gov. Jon S. Corzine yesterday challenged New Jersey’s top two legislators to change the state’s pension and health benefits system, four days after telling them they should not be taking up the issue.
The Legislature has been considering the changes as one of many ways to reduce the state’s high property taxes. But last week, Mr. Corzine released a letter requesting that Richard J. Codey, the Senate president, and Joseph J. Roberts Jr., the Assembly speaker, postpone action on issues like changing how pensions are calculated. Mr. Corzine wrote that he would prefer to deal with such changes directly with unions during contract negotiations..
Legislators reacted angrily. In an article published on Saturday, Mr. Codey and Mr. Roberts, both Democrats like the governor, told the editorial board of The Star-Ledger of Newark that they worried that tax reform would be hindered by Mr. Corzine’s request.
So last night, in a letter to Mr. Codey and Mr. Roberts, Mr. Corzine said he was concerned about their comments.
“If you continue to hold these views, I encourage you to lead the Legislature forward with the originally proposed pension reform bill, or alternatively, one that you judge will build the broadest consensus among your colleagues,” he wrote.
“If in your judgment the originally proposed pension reform plan gets us closer to long-lasting reform, I will respectfully and objectively evaluate the merits of that legislation when it reaches my desk,” Mr. Corzine added. “Make your best judgment and move forward, but do not allow this issue to slow or impede our shared and overarching objectives.”
From the Philly Inquirer:
State public workers to rally
As New Jersey’s bid to cut its property taxes speeds forward, thousands of government workers are expected to descend on the state Capitol today to demand their benefits not be cut.
Public-worker unions have vowed to bring 30,000 people to the Statehouse to protest recommendations to try to cut property taxes that are twice the national average by revising taxpayer-funded benefits for government workers and teachers.
Chris Shelton, a regional vice president with the Communications Workers of America that represents many state workers, said the effort “tramples on the collective bargaining process and makes radical changes to the negotiated pension, health and vacation benefits of hundreds of thousands of state and local government workers.”
The rally remained scheduled even after legislative leaders agreed to a request Thursday from Gov. Corzine not to act on reforms that would affect unionized workers. Corzine wants to include such reforms in contract talks.
“We’re going to go ahead with the rally,” said Bob Master, a CWA spokesman. “The process may be clarified for the moment, but the issues have not gone away.”
Today will prove a busy day.
Rentingin NJ,
You hit the nail on the head. The average tax bill in NJ will probably be $10,000 in less than 8 years!!! I cant wait to see how this plays out. Keep renting!!
I could be wrong (Lord knows I’ve been wrong before) but I wouldn’t be too quick to make sweeping assumptions about Corzine caving or throwing the legislature under the bus.
Maybe Corzine is playing a little good cop/bad cop with the unions right now, and Codey and Roberts just don’t want to be the bad cop.
Pension reform is coming, and the state workers may not like it, but it will be easier to swallow if:
1) It seems inevitable (I don’t think it does to the unions yet)
and
2) The unions think they have a say in the way it goes down, (i.e. part of a negotiation — basically the legislature puts all the cuts on the table and Corzine tells them to start choosing. Yes it puts Corzine in the best spot, but he’s not stupid so why would anyone expect him to do otherwise.
Commercial RE Consultant ,your dreaming if you think it will take 8 years for taxes to go up 40% it took 5 years for my taxes to double (little Silver $21,000.00) I say it will double again within 4 years….it’s comming
From the Courier Post Online:
7,000 state workers gather in Trenton
Thousands of public workers are gathered in front of the Statehouse this morning, hoping they can deliver a message loud enough to get lawmakers to back off from making pension or benefits cuts part of their property tax session.
New Jersey State Police estimate there are 7,000 teachers, firefighters and other government workers gathered by the Statehouse steps, stretching across West State Street, which is closed to traffic, into a small park.
The event has attracted national and state labor officials. Mike Billirakis of the National Education Association executive committee said New Jersey schools are at the top of the nation for graduation rates and college attendance.
“Is there anyone here getting a year-end bonus? Is there anyone getting stock options? … How about a note of appreciation from the folks you serve?” Billirakis said, and the crowd yelled back, “No!”
“I’m on the steps of one of the richest states in the nation, in one of the best educational systems, and you get no respect,” Billirakis said, prompting another “No!” from the crowd.
Participants are waving banners – some reading “I Earned My Benefits” and “Negotiate, Don’t Dictate” – and foam hands. Occasionally, they chant, “We’re not the problem!”
yeah we’re all getting year end bonuses and stock options except for the poor union workers who looking at hours worked compared to the total comp package are some of the fattest cats around here. please.
I think littlesilvered has it about right; the rise in taxes will be fairly quick.
At some point you get a neat positive feedback loop with increasing taxes forcing people to move, increasing the taxes paid by the remaining, forcing more of them to move… repeat until it pops.
Maybe the best (only ?) thing to do is move and let NJ go bankrupt.
nj is bk’d its a wefare state. that’s all
that will be left, high end and the rest will
be illegals, and low lifes sucking up
all the services. start with the hospital
system,and end with screwing the taxpayer,(home
owners) to pay for the rest.
go Carla
So far, the state has really put nothing on the table to cut spending, with the exception of curtailing state worker benefits and that prospect appears to be fading fast.
What is going to prevent property taxes from rising another 7% next year and again the following year? Sure, you can artificially cap tax increases, but without capping spending, it will just mean more debt.
At least those households that make under $100k will get to roll the clock back a few years with their 20% cut, however they will catch back up in 2 years or so. For those in the over $100k category, it looks like thing will probably get worse.
this goes always like this: democrats raise taxes so eventually people (including democrats) leave the state and move to red state. Then they vote democrats who raise taxes and give money to illegals, housing projects and other parasites and then people move again to the next red state state.
MA, NJ, NY and CA are all losing population.
Eventually we run out red states and whole country is run like liberal high tax paradise (see New Orleans/ST Louis/Hudson County.) Well, at least we have gay marriage then. Hope you enjoy it.
littlesilvered I hope your wrong. I assumed Corzine and Co. will do something to help people who make under 100K. At least some of the retired baby boomers may benefit from this. Fortunately, many public employees can’t benefit from this because they earn to much!!!
New Jersey – Work Hard Leave Poor!
Anyone who feels they are greatly undercompensated as a public sector employee, I invite you into the real world! Most of the people I know in the private sector work more than 50 hours per week, get 2 weeks vacation and have to reach in there wallet when they visit the doctor. I say to all of you, maybe we need to stop complaining about this on this blog and start a rally of our own.
To all public employees…there is no job security in the private sector, in most cases there is no time and a half. Consider that your benefit! One more thing..the private sector is the “straw that stirs the drink”. (R. Jackson) Keep that in mind, as we continue to lose high-paying employment to other states.
I just don’t understand why this is taking so long .Just reise Property tax 100% so it FORCES people to flee or walk away from there home ,now the developers can move and do what they want …isn’t this what’s it’s all about any way>