Bill Text: NJ A3214 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides temporary property tax levy cap exclusion for certain increases in public safety personnel costs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-09-16 - Introduced, Referred to Assembly Housing and Local Government Committee [A3214 Detail]
Download: New_Jersey-2010-A3214-Introduced.html
Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
SYNOPSIS
Provides temporary property tax levy cap exclusion for certain increases in public safety personnel costs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning exclusions to the local property tax levy cap and amending P.L.2007, c.62.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 10 of P.L.2007, c.62 (C.40A:4-45.45) is amended to read as follows:
10. a. (1) In the preparation of its budget the amount to be raised by taxation by a local unit shall not exceed, except as provided in paragraph (2) of this subsection, the sum of new ratables, the adjusted tax levy, and the total of [waivers] voter approved increases pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46)[; provided, however, that in the case of a county, the amount to be raised by taxation shall not exceed the amount permitted by section 4 of P.L.1976, c.68 (C.40A:4-45.4)].
(2) A local unit that has not been granted voter approval for a [waiver] property tax levy increase beyond the maximum allowable amount pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), may add to its adjusted tax levy in any one of the next three succeeding years, the amount of the difference between the maximum allowable amount to be raised by taxation [or county] for the purposes [tax, as applicable,] of the local unit for the current local budget year pursuant to paragraph (1) of this subsection and the actual amount to be raised by taxation [or county] for the purposes [tax, as applicable,] of the local unit for the current local budget year.
(3) A county or municipality that is subject to the provisions of this section shall not be required to comply with the provisions of P.L.1976, c.68 (C.40A:4-45.1 et seq.), concerning limitations on increases in final appropriations, and, in the case of a county, limitations on increases to the county tax levy to be apportioned among its constituent municipalities pursuant to section 4 of P.L.1976, c.68 (C.40A:4-45.4).
(4) The Director of the Division of Local Government Services in the Department of Community Affairs may promulgate rules and regulations, in accordance with section 12 of P.L.2007, c.62 (C.40A:4-45.47), to require reporting by all local units subject to the provisions of this section in order to verify compliance.
b. (1) The following
exclusions shall be added to the calculation of the adjusted tax levy: (a)
increases in amounts required to be raised by taxation for capital
expenditures, including debt service and debt service guarantees as
defined by law; (b) increases in pension contributions and accrued
liability for pension
contributions in excess of 2.0%; (c) increases in health care costs
equal to that portion of the actual increase in total health care costs for the
budget year that is in excess of 2.0% of the total health care costs in the
prior year, but is not in excess of the product of the total health care costs
in the prior year and the average percentage increase of the State Health
Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually
determined by the Division of Pensions and Benefits in the Department of the
Treasury; (d) for budget years beginning before December 31, 2013, increases
in amounts required to be raised by taxation for police, fire, and emergency
personnel costs, including compensation, for the budget year, which costs are
in excess of 2.0% of the total costs that were required to be raised by
taxation for the prior budget year, and (e) extraordinary costs
incurred by a local unit directly related to a declared emergency, and
subject to definitions, procedures, and approvals [as defined by regulation] promulgated by regulations
of the [Commissioner
of the Department of Community Affairs, in consultation with the Commissioner
of Education, as appropriate]
Local Finance Board.
[If there are no exclusions, then the amount of the difference shall reduce the adjusted tax levy by that amount.] (2) Any cancelled or unexpended appropriation for any exclusion pursuant to this subsection or [waiver] voter approved public question pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46) from the prior year's budget, [also] shall be deducted from the sum of the exclusions listed in [paragraphs (1) through (6)] this subsection or shall directly reduce the adjusted tax levy if there are no exclusions.
(cf: P.L.2010, c.44 , s.9)
2. This act shall take effect immediately.
STATEMENT
This bill is intended to temporarily allow increases in costs, including compensation, for police, fire, and emergency personnel that are in excess of 2.0% of the total costs for the previous local budget year to be outside of the limit on increases to the local property tax levy. The local property tax levy cap is currently set by statute at 2.0%. The funds raised under the allowable property tax levy increase are not sufficient to provide for public safety cost increases that are beyond the ability of a municipality or county to control. This is because compensation costs are often imposed by mandatory "interest arbitration," during which the 2.0% property tax levy cap is not a major consideration of the arbitrators. Placing these increases under the cap unfairly eliminates most of the budgetary discretion that local residents expect of their elected officials and uses up much, if not all, of the available funds under the permitted annual tax levy increase to the detriment and exclusion of other local needs and concerns. This cap exclusion would be available only during the current economic crisis for budget years beginning before December 31, 2013. The bill also includes certain technical corrections and clarifications to N.J.S.A.40A:4-45.45 that were not included in the Governor's conditional veto of Senate Bill No. 29 of 2010, enacted as chapter 44 of 2010.
