LAMPITT BILL REQUIRING LOCAL OFFICIALS TO COORDINATE ON LONG-RANGE FISCAL PLANS ADVANCES

LAMPITT BILL REQUIRING LOCAL OFFICIALS TO COORDINATE ON LONG-RANGE FISCAL PLANS ADVANCES

Assemblywoman Says Creation of Five-Year Master Financial Plans Would Create Stability,Help Protect Communities from Property Tax Sticker Shock

(TRENTON) - The Assembly Housing and Local Government Committee today released legislation Assemblywoman Pamela R. Lampitt sponsored to require all county, municipal, and fire and school district officials to cooperate on five-year master financial plans.

"The cloistered nature in which school and fire districts, municipalities, and counties develop their individual budgets merely exacerbates our financial problems," said Lampitt (D-Camden). "Every level of government honestly believes that the budget they prepare responsibly meets the needs of the community, but those budgets can also add up to a tremendous increase in property taxes. Governments need to work together to plan proactively for the future and stop this one-year-at-a-time budgeting that is driving families from our state."

Lampitt's bill (A-2552) would require all county and municipal governments, school boards, and fire districts to cooperatively develop five-year financial master plans. The plans would build on existing budgets and include current and anticipated revenues, expenditures, short- and long-term debt, and anticipated changes in ratable bases. The bill also would mandate an annual meeting of all the taxing entities within a municipality to review a plan and ensure compliance.

The Assemblywoman says the creation of such plans would ensure every authority empowered to raise revenue through property taxes would know each others' capital needs. This would prevent situations where property taxes skyrocket in one year because multiple authorities all seek to simultaneously make expensive upgrades.

For example, Lampitt noted that a town may be in need of a new fire truck, replacement roofs for all of its schools, and a new building for its police department. Asking property taxpayers to finance all three projects simultaneously would result in a large property tax increase.

If all taxing authorities knew each others' capital needs, they could agree to parcel-out the projects over the life of the master plan, allowing for all needs to be met while keeping property taxes stable.

To ensure involvement by all property taxing authorities, any entity that fails to participate in the annual meeting would be ineligible for state aid, loans, or grants.

"All levels of government must recognize their own culpability in our property tax crisis and commit to being a part of a collective solution," said Lampitt. "Fostering partnership and communication will give officials a new perspective on the budget process and can lead to discoveries of new efficiencies and new opportunities to share services. Continuing the current 'go it alone' attitude toward property taxpayers benefits no one."

The measure was released 5 - 0 - 1, and now heads to the Assembly Speaker who decides if and when to post it for a floor vote.

--30--