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March 21, 2007 • Vol. XXX • No. 30
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Page| Tax Cap Bill Still Awaits Action—REVISED | |
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The governor has until the Legislature reconvenes – in May – to take action on the property tax cap bill. A-1 incorporates proposals from the Legislature’s special session on property tax reform. In addition to placing 4 percent property tax caps on school, municipal and fire district budgets, the bill would provide residents with property tax credits funded through part of last year’s 1-cent sales tax hike. At any time between now and May, however, the governor may sign the bill turning it into law, recommend changes to the Legislature (a conditional veto), or veto the entire proposal. If he takes no action on the bill within a certain period of time, it will automatically become law. A-1 would also provide adjustments and waivers to the property tax cap. The process, however, may be more restrictive than previous practice. Additionally, a one-year lapse in certain types of waivers could present problems in school district budget development for 2007-2008. Visit NJSBA’s new property tax cap resource page for information that board members need to know about the property tax cap. Accountability On March 15, Gov. Corzine signed the accountability bill into law. The legislation will affect superintendent contract negotiations, school budget information, board member training and other areas. (See page 4 for a summary of the law’s impact on school districts.)State Comptroller A-2/S-15, also signed on March 15, creates the position of a state comptroller, appointed by the governor. The comptroller will be charged with conducting financial audits and performance reviews of state and local governments, including school districts. The Senate amended an earlier version of the proposal to reduce the scope of state comptroller audits of local governments and school districts. Local school boards must already secure independent audits of their budgets and are subject to financial oversight by the state Department of Education. |
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