Dear Editor:
Mayor Zimmer’s municipal government austerity budget and Governor’s Christie’s two percent annual increase cap are effective first steps in property tax reform.
But much more needs to be done! Remember, the municipal portion represents about one-third of property taxes. The BOE and County portions each represent about one-third, too.
While the BOE tax rate has remained pretty much the same for many years, it has been suggested that the decade long growth in ratables has increased the school budget “under-the-radar” by millions of dollars. Therefore, the next BOE budget should be zero-based, evidence-based, and benchmarked against “gold standard” state-wide performance and financial metrics.
No one seems to be watching the county budget, which seemingly grows without reasonable explanation. And as property assessments drop in other municipalities, the county budget is not cut; rather a bigger share is passed on to Hoboken. Again, we should be demanding “best practices,” the end of cost shifting, and a significant budget reduction.
PILOT abuse is rampant in Jersey City, with every new PILOT there shifting county taxes to Hoboken. All PILOTs, in every municipality, should be reviewed for appropriateness, and unjustifiable PILOTs should be rescinded. Every new PILOT should meet a very “high bar” of community benefit. (And the “W” Hotel PILOT ought to be clearly explained.)
Consolidation of public services amongst the various municipalities, that reduces cost without compromising effectiveness, should be a mandate not an option. Unnecessary services should be eliminated.
“Privatization” and “outsourcing” should be on the table. Government should provide only essential services that government can best provide.
The last REVAL in Hoboken was 1988. The inequities this causes are self-explanatory. Only a REVAL can level the playing field so all property owners have “skin in the game.” (Remember to file a tax appeal with the help of a professional advisor if you think your assessment is too high.)
“Property Tax” is not a simple calculation; rather it is the sum of many constantly moving parts. When the parts are not synchronized, the conscientiousness and property tax savings by one of the three rate-setters is easily lost by the profligacy of the others.
Hoboken’s fiscal sustainability requires public inquiry about property taxes and coordination, and cooperation between the various taxing entities.
Jonathan M. Metsch, Dr.P.H.
The opinions in the letter are solely those of Dr. Metsch and not those of any organization with which he is associated.