Sen. Phil Haines, Assemblywoman Dawn Marie Addiego and Assemblyman Scott Rudder today announced the formation of a Task Force to study the impact of unfunded State Mandates on our local taxpayers.
The Task Force members are three local experts: Riverton Council President Bob Smyth, Burlington County Freeholder Stacey Jordan, and Lumberton Mayor Pat Delany. They have been asked by the 8th District legislators to work with county and municipal officials from Burlington County to identify state mandates, assess the cost on taxpayers, and suggest ways to lift the weight from our towns and taxpayers.
“The unintended and unfunded consequences of seemingly well-intentioned legislation is crushing our taxpayers,” said Sen. Haines. “This has been the root cause of property tax escalation, and it has to stop.”
In 1995, voters in New Jersey approved an amendment to the constitution that required the state to provide a funding source for mandates. The “State Mandate, State Pay” amendment obviously has failed, as time after time, the cost of state mandates are shifted to already over-taxed property owners.
“Our towns are getting hit from both sides. At a time when we are seeing historic aid cuts from Trenton, mandates continue to pile up, leaving local officials with few options other than to raise taxes,” Sen. Haines said. “The state has to stop mandating municipalities to provide services that taxpayers can no longer afford.”
Unfunded mandates are costing taxpayers millions of dollars every year, and the number continues to grow. As property tax rates have rocketed skyward, more and more frustrated residents are opting to leave the state.
“The state has to take ownership of these mandates, and either provide funding or take steps to alleviate pressures on the taxpayer,” said Assemblyman Rudder.
“We need the politicians in Trenton and the bureaucrats who promulgate legislation to be more conscious of the impact mandates are having on municipalities and property taxpayers,” Assemblywoman Addiego said. “We have to change the way the state is doing business.”
Unfunded mandates have impacted the fiscal situation at the county level, as well.
“When we cut county taxes this year, we didn’t turn around and relocate a burden on our municipalities,” said Freeholder Jordan. “We shouldn’t have to worry about the State transferring its financial burdens to the counties and towns either.”
She noted that unfunded State mandates that have been pushed off on the County range from the costs of providing and maintaining new courts facilities to providing security for the courts to housing and caring for State prisoners in the County detention facilities.
The “other expense” cost of keeping prisoners rose $308, 000 to $5.6 million for 2008, Freeholder Jordan said, with most of that increase attributed to increases in medical costs and food – costs the County is expected to bear.
“We know that when the state imposes a mandate, the additional costs will impact our taxpayers,” said Council President Smyth. “We are going to find out what these are costing the taxpayers, and determine ways to fund and reduce mandates.”
“It’s death by a thousand cuts,” said Mayor Delany of the impact of unfunded state mandates on towns like Lumberton. “The state has to change priorities to find some relief for taxpayers.”
The Task Force will schedule roundtable discussions with local officials and survey all 17 municipalities in the 8th Legislative District to quantify the cost of unfunded mandates at the local level, and to compile suggested solutions that could lead to legislation to change the way these mandates are funded.
“Our goal is to reduce the financial impact of mandates. One solution may be to not consider any new mandates until a thorough evaluation of the need, benefit and costs to municipalities has been done,” Smyth said. “And existing mandates should be reviewed to determine if they are still necessary and beneficial, and how the costs impact municipalities.”
Another possible solution could be legislation strengthening the authority of the State Mandate Council, created after the “State Mandate, State Pay” amendment was passed.
Good intentions, bad checks
The Task Force convened by Sen. Phil Haines, Assemblywoman Dawn Marie Addiego and Assemblyman Scott Rudder will make a thorough examination of the policy of Unfunded State Mandates.
Here are some examples of mandates that have impacted municipalities and taxpayers throughout the state:
* Changes in the Council on Affordable Housing (COAH) Regulations has increased the burden on municipalities by hundreds of thousands of dollars. Lumberton, for example, is left holding the bag for close to a half million dollars.
* By February of next year, every municipality must have a state-approved facility to wash township vehicles, including garbage trucks. The facility must have a special recharge system to conserve water, and could cost towns from $100, 000 to $150, 000. Many local municipalities wash their vehicles daily. Towns can utilize private wash facilities, but most commercial operations can not accommodate large vehicles.
* The State Highway Department used to be responsible for removing deer carcasses along Burlington County roads, but the heavy lifting and the expense has been transitioned to the county.
* A call to 911 involving any form of domestic violence now requires a state-mandated response of no less than three police officers. This creates a much safer response, but also leads to staffing and budget issues, especially for smaller municipalities.
* Churches are not the only tax-exempt properties in New Jersey. Some schools, hospitals, group homes, cemeteries, fire stations and other non-profits are exempted by state mandate, and their share of revenue must be made up by property taxpayers.
* Stormwater regulations require road salt be stored in a shelter or shed. The cost can reach $50, 000 or more, and there is the likelihood the state will soon mandate garage doors be installed, adding to the cost.
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