Senate Passes 2% Cap Compromise July 8
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July 12, 2010
The Senate passed the “2.0% cap compromise” July 8 by a vote of 36-3. Senate bill S-29/A-3065 (Sweeney / McKeon) was conditionally vetoed July 7 in order to facilitate the compromise reached between the governor and Senate President Sweeney July 3 (Gov. Christie Issues CV of Prop Tax Cap Bill, July 7, 2010). Three senators voted no: Ronald Rice (Essex), Bob Smith (Middlesex) and Shirley Turner (Mercer). Sen. Nia Gill (Essex) was absent.
The measure now moves to the state Democrat-controlled Assembly, which has scheduled a vote for July 12 after Assembly Democratic leaders acquiesced to the compromise. (Assembly Speaker Will Not Block 2.0 Property Tax Compromise, July 6, 2010). The modified version of the cap would lower the ceiling on property tax growth from 4 percent to 2 percent a year and allow towns to exceed it only for pension and health care costs, debt service payments and states of emergency. Otherwise, local voters would have to accept exceeding the cap by a simple majority in a referendum.
Christie’s original proposal was to put a question on the ballot in November to place a 2.5 percent cap in the state constitution with exceptions only for debt service. The compromise, reached July 3 during a special legislative session Christie called, does it statutorily, making it easier to change than a constitutional amendment. (Governor & Senate President Reach Cap Compromise July 3, July 3, 2010)
Governor’s Toolkit
It is expected that the Legislature will now turn to Christie’s proposed "tool kit" package of legislation. Sweeney, who said Democrats will introduce some of their own ideas, expects to have a "solution" by the fall.
Christie’s proposed reforms include allowing towns to opt out of the civil service system, but Sweeney said he was not open to that according to a report in the Star Ledger. "I won’t support eliminating civil service. But can civil service be modernized? Sure it can. Can it be brought up to current standards? Absolutely," he said.
Democrats who voted against the cap said it could harm towns without building in other cost controls.
Most lawmakers said it was a step in the right direction.