file photo by Boyd Loving
BY DAVE SHEINGOLD AND JOHN C. ENSSLIN
STAFF WRITERS |
THE RECORD
Reforms enacted in 2011 to keep the nation’s highest property taxes in check are showing signs of weakening as a growing number of New Jersey towns fail to stay within the 2 percent cap on increases that formed the cornerstone of the effort.
The citizens are beginning to understand the lesson:
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“the cheapest product or service is not always the least expensive”
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which goes along with “you get what you pay for…..”
What is the ‘work around’? How are towns able to increase it for more than 2%?
Actually, the legislation allows two ways for districts to legally exceed the two percent cap without voter approval;
• The use of waivers for increased costs in health insurance, pensions, debt service and emergencies that will be excluded from the cap
• The use of the banked cap which permits the “banking” of any unused levy cap balance for up to three years
Actually, the legislation allows two ways for school districts to legally exceed the two percent cap without voter approval;
• The use of waivers for increased costs in health insurance, pensions, debt service and emergencies that will be excluded from the cap
• The use of the banked cap which permits the “banking” of any unused levy cap balance for up to three years