New Jersey Governor Proposes 2.5% Tax Increase Limits & Spending Cuts

Claire Heininger & Josh Margolin:

The governor's $29.3 billion budget will shave $2.9 billion off state spending from last year, about a 9 percent drop. The cuts include reductions in aid to municipalities and school districts, said two officials, who spoke on the condition of anonymity ahead of the announcement.

Unlike the current 4 percent limit, the new "hard" 2.5 percent cap on municipal, school and county property tax levies would be all-encompassing, without exceptions for such essentials as rising health insurance or debt payments. The tax could be raised higher only if local voters grant their approval in referendums. The state also would be constitutionally barred from increasing its own spending on direct state services by more than 2.5 percent per year.

Posted by Jim Zellmer at March 16, 2010 1:02 AM
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