Property taxes in New Jersey have increased dramatically in the last 10 years, and taxpayers in Passaic County pay among the highest property taxes as a percentage of their median income. Indeed, the economic problems in our state have degenerated into full-blown structural instability requiring immediate reconstruction. The past efforts to shore up the walls of our economically crumbling home have proven unsound, because the foundation has been sinking into a swamp of political expediency. Our governor has recognized the problem and has done what any good architect should do: scrap the blueprints and start anew.

Two competing plans to establish a tax cap are being debated among our legislators and the details are more than a simple difference in percentages. Governor Christie has proposed a constitutional tax cap of 2.5 percent that would establish a ceiling to increases in the property tax levy by municipal, school and county taxes and a 2.5 percent cap on spending for state government operations, subject only to voter approval by referenda in excess thereof.

The 2.5 percent cap would be adjusted for increases in ratables, allow local government to "bank" unused tax levy and use it in subsequent years. Senate President Stephen Sweeney has introduced a bill, S29, which would impose a cap of 2.9 percent on school districts, counties, municipalities, fire districts and solid waste collection districts.
Concrete and clay

The difference between a constitutional amendment and a statute is the difference between concrete and clay. The problem with the clay of a statute is that it is malleable without the direct input of the voters. The concrete of a constitutional amendment can only be changed with an affirmative vote of the citizens. The competing caps can be judged by their exceptions. The Sweeney proposal allows expenses such as pension and health care costs to fall outside the cap. The governor's proposal only exempts debt service and expansion and growth from the cap. The governor's proposal is part of a larger reform package that includes sweeping changes to the way government handles its affairs.

To date more than 200 mayors support the 2.5 percent cap and the New Jersey League of Municipalities has conditionally endorsed it, but wants the 33 bill "tool kit" to be adopted by the Legislature before the adoption of the constitutional cap. In Passaic County, five mayors have signed on. More of our leaders should be standing up in support of reform, in support of change, especially in Passaic County. The 2.9 percent cap represents the way the state has addressed the issue in the past. It is too easy to amend and undo as the economy turns around.

I once suggested that Passaic County should establish a policy of not expanding government beyond the needs of its people and establish an internal cap on raising taxes to meet its essential expenses. Christie's bold leadership has resulted in positive change in a way I could not have thought possible. Even the bipartisan Passaic County Board of Freeholders signed on to the 2.5 percent cap.
Path to our future

The Legislature has until July 7 to take action to authorize the constitutional 2.5 cap amendment to be placed on the November ballot and has the entire summer to explore the technical issues of the governor's 33 bills, which are a "tool kit" for municipalities to handle long-standing issues that have traditionally been drivers of tax increases. Between now and November, we can listen to the debate unfold, regarding the merits and criticisms of the 2.5 percent cap. In the end, we will decide the path to our future.

All who are disgusted by the state of taxes should contact their legislators to make sure the constitutional amendment is on the November ballot. Remember, it is "we the people" who make this state and we the people who pay the taxes. We the people should be afforded the opportunity to exercise our right to vote on the constitutional amendment.

I support the kind of change that forces government to be frugal, which reduces bureaucracy and which makes it harder for special interests to access my tax dollars. The simple fact is that if we don't change the way government conducts business and place limits on how much we can be taxed, the walls will continue to crumble and we will soon need to find another home.