Commission's Objectives:
"1) ensuring that local resources are sufficient to finance local government expenditure responsibilities,
2) achieving a better balance between state and local taxes and a more equitable distribution of tax burdens,
3) improving the quality of education services,
4) sorting out the proper roles and responsibilities between the state and localities, and
5) enhancing the economic competitiveness of the state."
Commissions Report:
SLERP Commission Final Report of Recommendations
To Honorable Thomas H. Kean, Governor
Chairman Bruce G. Coe July 1988
Commission chairman, Bruce G. Coe, President of New Jersey Business and Industry Association, stated in his forwarding letter to Governor Kean:
"The Commission focused on the two major fiscal problems that confront New Jersey.
First, the state's fiscal system relies too heavily on local government to provide services.
Second, the burdens of the state's tax system are not fairly distributed based on the ability to pay."
"Since it was not the Commission's intention to increase the overall size of New Jerseys public sector, our program of reforms is revenue neutral."
As outlined in the Executive Summary: Since it is not our aim to increase the overall size of the state and local public sector in New Jersey, our package of reforms
will be revenue neutral. That is, the total state and local tax burden will not increase as a result of these reforms."
In the Chapter I: Introduction, "Home Rule" issues were addressed: Later in Chapter I: Introduction in section titled "Overview of The States Public Sector" the report advised: In the Chapter IV: Major Issues, "home rule" and "thorough and efficient" issues were addressed: The two problems are, of course, related. In Robinson v. Cahill, 62 N.J. 473 (1973), the New Jersey Supreme Court declared that a thorough and efficient school system could not be provided as long as "municipal overburden" inhibited poorer school districts from availing themselves fully of the funding power afforded them under the school aid formula." From Commission Report Chapter VII Impacts and Conclusions:
The link below will connect you to the New Jersey's web site so that
you may view the entire SLERP Commission Report. The report contains about hundred and forty pages of
insightful material to assist in the understanding of the issues surrounding the New Jersey
tax restructuing. A separate Property Tax Assessment Study Commission (PTASC) provided a set of recommendations. To view these recommendations
use the next link and browse for SLERP Report Appendix D on PTASC Recommendations. Return to Home Page A Public Forum On Property Tax
"The changes we propose have three main purposes:
First, to ensure that local government resources are sufficient to finance local government expenditure responsibilities;
Second, to achieve a better balance between state and local taxes to relieve the pressures on taxes for local governments; and,
Third, to sort out responsibilities and functions between the state and localities on a more rational and logical basis.
"Home Rule.
We propose to restructure the state and local fiscal system by increasing the reliance on the state's broader tax capacity, allocating to every unit of government the resources to do what must be done. The new system presented in this report will enable local governments to provide essential services within New Jersey's tradition of home rule. New Jersey is a state with many relatively small local governments that historically have had strong local fiscal and legislative powers compared to the powers granted to local government in many other states. Local determination the ability of citizens to make their own decisions, shape the character and future of their communities, and identify with their home govemments is a strong and cherished tradition in New Jersey. Our goal is to enhance home rule and to make it work more effectively, under a state-wide system that permits orderly growth and is balanced, fair, and efficient."
"However, the growth of state government functions, such as Medicaid, environmental protection, and the state college system, resulted in a much more centralized government structure, where centralization reflects the importance of state spending in total state and local spending. Between 1969 and 1982, New Jersey moved from the least centralized, ranked 50th among all the states, to among the most centralized, ranked 20th."
"While New Jersey has a political tradition of home rule, local governments are legally creatures of the state. Their existence, functions, and powers are prescribed by the State legislature. New Jersey's recent prosperity does not obscure several very real and significant problems in the state's fiscal system. First, several studies revealed that the school finance system has not produced its intended results. School districts with smaller tax bases are still taxing more and yet spending less per pupil than districts with larger tax bases. Second, these poor municipalities are facing annual fiscal crises, deteriorating public services and facilities, and ever higher property tax rates.
"The Commission's proposals will redistribute state and local tax burdens among households. The changes result from proposals to broaden the general sales and gross income tax bases. to increase the gross income tax rates for high-income households, and to provide refundable tax credits to reduce the regressive burden on low-income households of the real property and consumption taxes. The poorest households will have their average tax burden reduced by 25 percent as a result of the Commission's recommendations, while households with incomes over $200,000 will experience a 20 percent tax increase."
(Remember: When you are ready to return to this web page, use the "Back" key on your Browser!)
1988 SLERP Commission Report
PTASC Commissions Recommendations.