New Jersey Gov. Chris Christie (R) scored another in a series of major political victories, signing a bill capping the growth of property taxes and municipal spending at 2% annually. The bill replaces the Garden State’s previous cap, at 4%, which the governor assailed as ineffectual due to 14 exemptions that allowed local governments to virtually ignore the law. The new cap, which Christie pushed the Democratic-controlled legislature to enact, requires municipal councils to get approval from the voters before going over the lower limit.
The bill is the result of a compromise between Christie and Senate President Steve Sweeney (D-Camden). Christie had proposed a 2.5% cap as part of a package of 33 bills, which he dubbed a “toolkit” for local government to get skyrocketing spending and property taxes under control. Christie’s proposal would have amended the state constitution to include the 2.5% limit and mandated the approval of a supermajority of 60% of voters for a local council to exceed the cap, with debt service as the lone exception.
Sweeney and Senate Democrats favored a non-constitutional 2.9% cap. Sweeney’s bill would have provided automatic exemptions for a broad set of items such as pension obligations, healthcare premiums, and natural disasters and other emergencies. The bill would also have allowed local school boards to apply for a waiver for spending necessary to meet core curriculum standards, and for towns to seek waivers for items related to “public safety, health and welfare.” Democrats in the House and Senate passed this bill and sent it to Christie for his signature.
