Will N.J. towns be able to live within the new cap?

A law that took effect at the beginning of the new year puts a two percent cap on property tax increases in New Jersey. There are some concerns whether towns and school districts will be able to stay within that limit. 

 

New Jersey State League of Municipalities executive director Bill Dressel says the two percent limit the legislature approved on arbitration awards for police and firefighters will help towns control costs. But, he says pension and health benefit reforms, civil service changes, and mandate relief are also needed.

 

“There are lots of thing that have got to be done between now and the next few weeks before we can really see I think significant changes which will help towns meet the constraints of the two percent cap law,” said Dressel.

 

Governor Christie and legislative leaders say pension and benefit reform will be high on the list of priorities this year.

 

Towns and school districts that want to increase taxes more than two percent to meet expenses will need approval from the majority of local voters.