OFFICE OF THE MAYOR
OFFICE OF THE MAYOR
Joseph M. DiBella
(732) 938-4500, ext. 2102
December
10, 2006 - This
past summer our State government shut down over disputes regarding how to
address the issue of property tax reform. After days of political games a
compromise was finally reached. Unfortunately the compromise fell short of a
real solution to begin to address the out of control tax issues facing New
Jersey communities. For Howell, we continue to be hit especially hard. Our State
aid, on a proportionate basis, has gone down year over year. Plus our recent
pension payment due the State went up at record rates to make up for former
State budget gimmicks. However, in spite of this we were told that real tax
reform was on the way. We were asked to be patient as a special State Committee
was charged with dealing with the excesses of our State and the incredible
burden we carry here at the local level.
Fast
forward to today where the Special Commission issues a report detailing dozens
of recommendations for addressing the State’s fiscal woes. The report speaks
of consolidation, shares services, an overhaul of medical benefits, massive
changes to the pension program and the elimination of redundant departments and
programs. Things actually seemed promising and for the first time in recent
history, we had a blue print to begin to tackle the incredible bureaucracy that
is our State government. However, this past week we seem to have fallen back to
the same old New Jersey we have come to know and expect. Rather than deal with
the issue head on, our Governor has now taken the issue of medical benefits and
pension reform “off the table”. After listening to mounting protests from
certain special interest groups, we’re back to square one as it relates to
perhaps the most costly issues we face. Based on the Governor’s change of
heart, the issue is now relegated to the authorities in Trenton to hammer out at
the bargaining table. Unfortunately, I for one feel this is a major set back and
shall cost communities like Howell millions in the short and long run.
The
State’s pension plan is in terrible shape. The program is under funded by $12
billion dollars and the accrued liabilities of the program grew by 70% this past
year alone. Rather than adopting a 401l style plan like most of the private
sector has used for years to deal with antiquated pension systems, the State
continues to slug along, increasing the bills for our grandchildren. This past
year alone Howell Township shelled out more than $500,000 of local budget
dollars to pay into a broken pension system that is draining the financial
resources of the community.
The
medical benefits plan is not much better. Thankfully we moved the Township’s
plan out from under the State controlled program to a private plan that saved
Howell taxpayers more than $350,000 while offering the same coverage. However,
the problems with the State’s plan trickles over to us here locally. While
most Howell residents are paying more for the health insurance through increased
co-payments and higher out of pocket contributions, the State’s plan remains
exceptionally generous. The State’s health benefits tab has increased 150%
over the last 5 years and will double by the year 2010.
In spite
of these compelling statistics and their enormous financial burden on taxpayers,
the State is now looking the other way and ignoring these costly matters. Sadly,
NJ residents already pay two-times the cost of what any other State in the
nation pays in property taxes. Meanwhile, our State leaders say the issue can
wait to be dealt with.
Let me be
clear that our public employees are not to blame. Like taxpayers, they have been
victimized by financial gimmicks and one-time deals designed to pass the buck.
Part of the problem with the pension system is that towns and other entities
were allowed to get payment holidays while the stock market performed well. When
the bottom fell out, among other things, the chickens came home to roost. Public
employees do the people’s business and deserve to be paid fairly with
reasonable fringe benefits. However, the time has come to ensure that the public
benefit systems mirror that of what most residents get in the private sector.
Major corporate industries are trimming health benefits and altering pension
plans everyday. Meanwhile, NJ’s public system is left untouched due to
politicians who are afraid to address these sacred cow issues.
It is
time to modernize the benefit and pension systems so that they reflect what most
NJ residents get from their private plans. The Governor and the legislature have
the power to do this now. We need to rally together to encourage them to do it
and not to pass the buck while we drown in property taxes dropped in our laps.
In
addition, if the Governor can waffle under pressure from some lobbying groups on
these issues, what faith do we have that he shall stand firm on other important
tax reform measures. For example, we need massive reforms designed to
consolidate small townships and small school boards for the sake of savings. The
people of NJ and of our own community have spoken loud and clear that taxes are
the only issue right now. Instead of passing the buck and playing politics as
usual, we need this Governor and our legislature to make the tough decisions
necessary to straighten out our State, before it is too late. I encourage you to
email the Governor and tell him to stand up to the special interests and deal
with the issue of pension reform and health benefits now and not later.
You can
email the Governor at http://www.state.nj.us/governor/govmail.html
You can also write or call the Governor at:
Office of the
Governor
PO Box 001
Trenton, NJ 08625
609-292-6000
Only when we
make our voices heard can we effectuate change. Please join me in demanding for
meaningful reform at the State level. If there is anything I can do for you or
if you have any questions, please call or email me at MayorDiBella@twp.howell.nj.us
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