Dear Editor:
This is a letter I sent to our assemblypersons:
To: Assembly members Joan Quigley, Caridad Rodriguez, Vincent Prieto, Reuben Ramos, Anthony Chiappone, and Charles Mainor.
Dear Assemblypersons:
The problems municipalities are facing today are the results of poor management of the Local Finance Boards for decades. Past actions for former mayors still impact today’s budget, especially in Jersey City. As an example, Local Finance has allowed Jersey City mayors to refinance old debt multiple times, pushing off principle payment until their term expires. Then taxpayers receive what amounts to a balloon payment when the principle kicks in. Eventually, the bonds lose their tax-exempt status. This practice must stop.
Also, municipalities play of game of delaying the budget waiting for state aid to kick in; however, the state passed the Fiscal Year Adjustment Act in 1991 requiring large municipalities to follow the state calendar. Communities like Jersey City never introduced the budget on time, using the weak excuse of waiting for state aid. In the meanwhile, Jersey City continues to spend and hire more people. Jersey City acts irresponsible because it is not constrained by a budget. The State must give fines to mayors and/or councilpersons for not introducing budgets in a timely fashion.
Finally, we must recognize that real estate is the currency of municipalities. Older communities have many tax exempt properties (churchs, schools, etc.) compared to the suburban communities. Now the small homeowner is dealing with tax abated properties. These properties do not have tax increases and contribute nothing to the local schools. Furthermore, as wealthier residents move into tax abated luxury properties, the wealth of the city increases causing a decrease in school aid. The state should address this unfairness.
Yvonne Balcer