For anyone not receiving a state homeowner rebate this year the net property taxes you will pay to the town will be higher.  That is an increase in property taxes.

Towns facing a reduction in state school aid will have to resort to school budget cuts, increases in local school taxes, and/or parents will now pay for certain programs for their children to participate.

A reduction in state municipal aid will result in loss of services and tax increases.  Imposing a cap on municipal tax increases (this is separate from school taxes) will surely guarantee that towns will maximize the cap perpetually. I believe this, whether it is 2.5% as promoted by Governor Christie or 2.9% as sponsored by Sweeney.

S2096/A2943 “an increase in the special purpose assessment charged insurance carriers” is linked to the FY2011 budget through “FAIR Act Administration” recommendations.  This assessment will be tacked on to our cost of insurance for individual consumers and businesses.

S2143/A3070 would implement a higher assessment on hospitals and certain care facilities to increase the money for charity care funding.  The Governor’s proposed FY 2011 budget recommends this legislation.  Here are the basics.

•        The $40 million cap on the hospital assessment is removed, and the $200,000 cap on the ambulatory care facility assessment is raised to $350,000.
•        With respect to the .53% assessment, monies paid by hospitals in excess of $40 million, federal matching funds received on account of such monies, and interest received on such payments and funds shall be allocated exclusively to support funding to hospitals.  In the event that any approval, application, or other condition necessary for the implementation of this provision and the distribution of funds pursuant thereto consistent with the Fiscal Year 2011 annual appropriations act is not obtained, granted, or satisfied, the Departments of Health Senior Services and Human Services shall jointly prepare a plan concerning charity care and related hospital funding, which shall be subject to the approval of the Joint Budget Oversight Committee.

•        With respect to the ambulatory care facility gross receipts assessment, the assessment shall be applied at the rate of 2.95%, beginning July 1, 2010.

     It is anticipated that this legislation will generate increased revenue, which will be matched with federal funding [also our money and our federal debt] and redistributed to hospitals.

S2088/A3066 “increases certain [numerous] business filing fees by approximately 25 percent and establishes [numerous] new fees for filing certain documents required for certain partnership statements”.

S2112 will increase costs to businesses through modification of unclaimed property laws.

“This act shall take effect July 1, 2010 and apply to travelers checks, money orders, stored value cards, credit balances, customer overpayments, security deposits, refunds, credit memoranda, unused tickets, or similar instruments outstanding on and after the July 1, 2010, including, but not limited to, those outstanding instruments issued before July 1, 2010.”

We will be paying more to live via direct or indirect governmental actions, labeled with any name, I call them tax increases.  Any fees, tax increases, and administrative costs to businesses are passed on to consumers.

If you are fooled by the New Jersey FY2011 budget, shame on you. The sales pitch is good but the product is flawed.

Contact information

NJ Senate and Assembly members
Governor’s office 609-292-6000

A few weeks ago Governor Christie vetoed a bill passed by the Legislature, the so called, “Millionaires Tax”.  Stephen Sweeney, State Senate president, hand carried the bill to the Governor’s office and it was immediately vetoed.

The governor recognized this bill for what it really was, a tax increase on the rich.  It puts a penalty on those larger earners among us, and is an attempt at re-distribution of wealth within the state.  With the Bush tax cuts due to expire in 2011 the high earners will be hit with higher taxes at a federal level.

Democrats deny this and cite the need of the elderly and the disabled who depend on the rebates and assistance that comes from this tax as necessary, lifting a burden on those low and fixed income citizens of New Jersey.

Much has been said of those earning in excess of one million dollars in New Jersey. Approximately 16,000 people fall into this bracket. Statements such as “they can afford this additional tax”, and “it is only about 2 cents on each dollar” have been used. Some feel they should share more of the burden of the less fortunate and the elderly struggling to pay their bills. Property taxes, mortgages, prescription costs are often the issue.

While this sounds all fuzzy and warm on the outside, it presents an enigma for the Democrats who are mostly responsible for prior tax increases. The runaway property and school taxes, and the burdens placed on small business being the largest. These are all increased costs that are ultimately paid by consumers, the very people they claim to be helping.

I mention small business simply because many of the high earners among us are small business owners, who will see these higher taxes. Also included are many executives and others such as doctors who will foot the bill for the programs the Dems deem so necessary.

The Democratic legislature now wants to increase the burden on those larger producers and it blames Christie for ignoring those in need with his recent cuts to services and aid, and the elimination of the Property Tax Rebates.

It is my belief that Sweeney knew all along that this bill would be vetoed, and pushed it anyway as a means of discrediting Governor Christie.

The Democrats are attempting to patch a hole in their political ideology. The rebates have been a staple for them to maintain favor in Trenton, with the checks mailed out, not surprisingly, right before Election Day.

Lately the rebates were created from bonding (Borrowing) money, which created a liability on everyone and increased the debt service to the state, which in effect includes you and me.

Some have called the millionaires tax a Socialist idea, and it actually smacks of Marxism right from The Communist Manifesto. “From those that have to those that need”.
This mirrors the ideals of redistribution of property, (Our money), and a progressive tax based on earning level.

I often ask people who advocate this tax, “Would you rob your neighbor?” and the answer is always a resounding “No”.  The next question I always ask is “Then why would you let the government do it for you?”  With top earners somehow demonized, many feel its ok to take from them; after all they can afford it. The goal behind the question is to get people to see this type of legislation for what it really is, a form of welfare for those receiving the rebate, a carrot dangled in front of them.

Most people I know have no problem giving a helping hand to those in need, and the charity level here in New Jersey among our citizens is amazing. We don’t need the State to enact and ultimately mismanage another tax like it has with so many other well- intentioned (or not) programs, or have political parties use it as a tool at our expense.

Any program that takes from producers ultimately takes from everyone, and brings all of us closer to a centrally controlled economy where everyone is equally poor, and decisions are made by those that have an agenda to keep the status quo.

A 2-cents per dollar tax over one million seems small, but the numbers don’t lie, and each million equals $20,000.00 in taxes. Top earners that have the means may simply leave our state.  Any way it goes everyone loses and revenues for the treasury continue to drop.

Entrepreneurs and other risk takers aren’t likely to embrace this tax, and will do what they do best….survive. Others in business look at our state and are reluctant to move here, and seek states with much lower burdens such as Florida. Higher taxes erode the business climate that in turn creates a downturn in jobs and the amount of tax the businesses pay and collect.

I have yet to hear the word “Cut” from any of the Democrats. All of the talk being about other sources of revenue, and ways to increase income to maintain mostly social programs and entitlements which always translate to higher taxes or fees.

Schemes have included patching holes in the budget with the tire tax, hotel and motel room taxes, and the ever-popular real estate transfer tax, but not fixing the problem.  These tax burdens and the various programs that shift money around, along with reckless borrowing have put us in our current situation, and now with the millionaire’s tax in jeopardy, Christie has put them back on their heels and they are scrambling to maintain their political grip on New Jersey.

Although Christie’s budget is not ideal, and does not cut where it really can, it is a move against the “Tax and Spend” mentality in Trenton. It seems that the Democrats have still not gotten the message, and continue to pursue the same course that has put our state between a rock and a hard place while blaming it on factors such as the economy and the current recession.

Americans for Prosperity in New Jersey has unveiled a budget that actually makes the cuts in important places, preserves school funding, and shows where Christie has actually not cut the budget but used some of the same tactics of shifting money and preserving some entitlements and programs that need to be cut.

From the Mount Laurel judicial decision the Legislature passed the Fair Housing Act in 1985, which spawned the Council on Affordable Housing (COAH).  The latest move, S1, and has passed the NJ Senate and is due for voting by the NJ Assembly tomorrow.  Governor Christie has stated that he intends to sign the bill if passed by the Legislature.  This bill would move the first line of the administration from state to a preliminary review process done by each municipality.  It is not an elimination of COAH, but a morph.

Affordable housing advocates believe towns that do not want the housing will be freed of the obligation.   Environmentalists are concerned that more development will be built in what they consider sensitive areas.  There is a lot of controversy on S1.   So much so that what I see is more lawsuits and more bureaucratic costs, all of which will ultimately be paid by taxpayers.

In New Jersey the term “affordable housing” is an oxymoron, no matter what entity is working the program.  Counties vary in levels of income to qualify for the housing, along with various values assigned to the price considered “affordable”.   New Jersey will never be affordable until our taxes become affordable.  S1 needs to be voted down, or vetoed by Christie if passed, because it will not create a more affordable New Jersey.

Contact information
NJ Assembly
Governor’s office 609-292-6000

The outlay for an employee does not end with writing a paycheck, and potentially increases total compensation by more than 40%.  Unfortunately, some workers are unethical, indolent, or incompetent and end up as a loss to the business.  The bottom line is employees are a great expense and risk and only of value if the amount they produce exceeds all the associated costs.  To some this may sound a cold, but business owners also have families to feed and business bills to pay.

In steps national health care adding onerous paperwork to shuffle and more employee costs.

The types of changes that employers could have to make include offering preventive care without copayments and instituting an appeals process for disputed claims that follows new federal guidelines. The law already requires all health plans to extend coverage to young adult children until they turn 26. Such incremental changes can nudge costs up.

The Obama administration said the draft regulation is an early version undergoing revision. Nonetheless, the leaked document was getting widespread interest Friday in lobbying firms that represent employers and insurance companies and on Capitol Hill.

I see six ways that employers will deal with the new requirements.

1)    Avoid hiring
2)    Consider layoffs
3)    Pass costs on to consumers in the form of increased prices of products and services
4)    Cancel or severely limit raises and benefits
5)    Drop employer covered health benefits and pay the fine
6)    Closing their doors

The looming national health care mandates do not promote a good environment for private sector jobs.

This Monday Liberal Democrats in New Jersey have scheduled a hearing at the Trenton Statehouse to propose resolution SCR108.  The resolution speaks of a utopian health care system without interjecting reality.   Governor Christie has not committed or declined New Jersey joining the collective states’ lawsuit challenging the constitutionality of Obamacare.  SCR108 is urging Governor Christie not to join the lawsuits.

Monday presents an opportunity to join with Americans for Prosperity members and others to testify and voice your objections to SCR108.

Statehouse-Trenton
Senate Health, Human Services and Senior Citizens Committee
Monday, June 14, 2010 – 10:00 AM
Meeting – Committee Room 1, 1st Floor, State House Annex, Trenton , NJ

On June 10th the Murkowski resolution (SJ Res 16) is due for a vote.  The resolution would stop the back door approach entry of global warming regulations by using the Clean Air Act as a vehicle.  By their action, the un-elected EPA is removing the Congress from policy decisions.

An email I received from Americans for Prosperity provides us with the information to contact Congress and urge the Murkowski resolution (SJ Res 16) be supported.

Freshman incumbent Leonard Lance has sent out numerous mailers and many radio advertisements.  But, there are many voters who are extremely unhappy with Lance’s voting record.  There are three Tea Party activists vying for Lance’s US Congressional position.  David Larsen is a businessman and farmer.  Bruce Baker is a real estate appraiser.  Lon Hosford works in IT development, video production and is a community college professor.  Further experience and position statements can be viewed on their web sites.

The battle for the primary is concentrated between Lance and Larsen and each are on the attack.

Leonard Lance mailers claim that he votes against liberal economic policies such as ObamaCare, bank bailouts, higher debt, and wasteful spending.  Lance opposes illegal amnesty and wants our immigration laws enforced and our borders secured. He points out that Larsen was behind on his property taxes (which are now up to date) and calls Larsen a “hypocritical tax-dodging politician”.  As a homeowner I know that if you dodge taxes your house is eventually put up for tax sale and if you pay up late there is a lot of interest added.  One doesn’t get away with not paying property taxes without risking loss.  The second point Lance keys in on are “tax subsidies” Larsen received for raising horses and selling hay.  Larsen has enough property and generates enough business from its agricultural use to qualify for farmland assessment.  New Jersey allows this lowered tax rate mainly because open land and agricultural activity are valued and also open land does not send children to schools and generally uses little in services.  The home and an acre or more of land surrounding are taxed at a normal rate.

David Larsen has sent out his own mailers in which we can learn a bit about his history and positions.  This is his first political race.  He is a successful businessman and entrepreneur who, “helped create and protect hundreds of jobs”. Larsen vows to cut government spending and government bailouts.  He is against government run health care as recently passed by Congress and signed by Obama.

The Larsen mailers also expose what liberal policies Lance voted for.  My own observations are included.  Conservative voters are most heated about Lance’s vote for the Cap & Trade bill, which essentially places a tax on energy.  Lance believes we need a national energy policy, but since India and China did not agree to cut emissions the bill wouldn’t achieve the desired emissions goals.  He continues to view the bill as good for New Jersey.

Lance was awarded the dubious dishonor of attaining the “Porker of the Month Award” for April 2009 from the watchdog group Citizens Against Government Waste (CAGW).  For 2010 Lance received the CAGW “Jekyll and Hyde Award” (pg 62).

As voters become more informed they are carefully examining political voting records and questioning the candidates chosen by the party cronies.  Voters are also retaining a long memory of candidates’ actions.  While Lance was a member of the NJ Legislature he voted for the New Jersey Highlands Act.  As a result of his prior vote, those negatively affected by the Act have rallied for Larsen.

Larsen has been described as having “a ton of fire” to take the US Congress for District 7.  For those who hear Lance constantly interject his own beliefs and opinions, separate from what the citizens are demanding, Larsen is the challenging primary candidate.

Edward Ackerman(1918-1948), Richard Ackerman (1916-2001), James Ackerman (1915-1981)

These brave men are my uncles who served during WWII.  Edward, I believe died during the war and James was captured as a prisoner by the Japanese.  Richard was in the Navy and joined in the fight to regain control of Attu from Japan.

Attu is one of the Aleutian Islands, part of a chain of islands in the Pacific off the cost of Alaska.  In 1942 the Japanese invaded Attu to set up bases for future offenses and as a barrier to Russia joining forces with America against Japan.  America began their challenging battle to regain Attu in 1943.  The extreme cold resulted in numerous cases of frost bite.  It was a fierce battle and many lives were lost.

A majority of us will have a day off for Memorial Day.  Let us not forget those who have and continue to defend our country so we may enjoy such pleasures.

Steve Lonegan, director of Americans for Prosperity gave us Christie’s ‘hit list’ during a seminar in Clinton on Wednesday.

•Elimination of over $800 [840] million in school aid primarily reduced in suburban districts.

•Elimination of $1.3 billion in property tax rebates

•Elimination of over $400 [420] million in municipal aid

••Deferral of $3 billion in pension payments and the elimination of $160 million in contributions to the state’s failing pension system that [former] Governor Corzine provided in the fiscal 2010 budget

Because Christie’s proposal includes a deferral of $3 billion in pension payments and chops aid and rebates there is room for him to find ways to actually increase budget spending.  Here is the list that increases spending for entitlements.

•Increases taxpayer funded nursery schools in the Abbott Districts from $596 million to $613 million.  Exceeds $12,000 per child.

•Raising eligibility for food stamps from 135% of poverty level to 185%

•Increasing Universal Health Insurance, “NJ Family Care” [New Jersey’s public option], by $110 million for those above the Medicaid levels

•Increases funding for “Healthcare Subsidy Fund” charity care by $79 million, for those ineligible for government and non-government sponsored healthcare

•Expansion of Medicaid and General assistance funding by $185 million to “actively enroll” additional children into NJ Family Care

The above information results in showing that Christie has not proposed to cut state operations, but instead cuts the amount many of our citizens have available to counter act the onerous property taxes.  Property tax relief in New Jersey is Constitutionally dedicated and funded by the state income tax.  I can attest that my ‘share’ of this dedication is missing from Christie’s equation.  Here is a very historically interesting and well-written article about the subject.What I see is a budget full of the same shifting of money as decades of governors past, with no substantive cuts to state government.  In order to cut state government, the size of the officialdom must be cut.  This can only be accomplished by consolidation, elimination of non-essential programs, and a cut in bureaucracy.  The very same “tough decisions” that Christie is calling upon the municipalities to abide by, needs to be applied at the state level.

Americans for Prosperity has prepared just such a budget, New Jersey Taxpayers’ Budget FY 2011.  The 118-page AFP budget number comes in at $25.9 billion, which is $2.4 billion less what is proposed by Governor Christie.  AFP’s budget accomplishes this with a lower expectation of revenue than does Christie.  The Office of Legislative Services Tax and Revenue Outlook backs up the AFP analysis as being a wise outlook. An overoptimistic projection can result in more cuts or increases in taxes.  Lonegan is concerned that, “The Christie budget has created a dilemma for the legislature”.

Among the proposals included in the Taxpayers’ Budget are:

•Eliminations and reductions of taxes and fees

•Consolidations of departments

•Increases school funding

•Restores school funding to suburban communities

•Equal dedication of school funding between Abbott and non-Abbott districts. (The Christie proposal sends 60.5% of the school funding to the 31 Abbott districts, which comprise 20% of the state’s students.  Fifty-eight non-Abbott communities are slated to receive no school aid at all.)

•Begins Abbott district school voucher program

•Eliminates non-essential programs

•Reduces bureaucracy

On reviewing the AFP Taxpayers’ Budget, I see that there is another option to the repetitive cycle of selective money distribution New Jersey budgeting has fallen into.  Each time an action takes from one group and gives it to another group it creates a reaction.  It could manifest by degrading spending power that supports our businesses and job creation, outward migration of wealth, decrease in state revenues and services, increases in taxes, and even an upsurge in the numbers of people seeking public assistance.

Education of citizens is empowerment for our positive command of government.  It is the best shelter we can provide our families and future generations.  It defends and empowers us with the knowledge necessary to contest the powerful, seeking to promote their own agenda, and those who are ill informed from casting their shortcomings into our lives.

The Americans for Prosperity seminars are very enlightening and educational.  The audience was in awe by what was presented.  We left with many tools and certainly increased wisdom about the challenges we all face living at the mercy of those who reconcile the state budget.

Americans for Prosperity-NJ director Steve Lonegan feels the citizens of New Jersey have a right to a hearing.

Lonegan described the event as “inspirational” because of the large turn out in the pouring rain.  Local police attempted to disperse the peaceful protesters by announcing it was private property.  The Gloucester County swat team was called when the group did not relent and it was decided that a single file line should be formed to maintain order.  Sweeney was not present so written messages were left and hopefully he will review them.For more coverage of the rally visit Americans for Prosperity.Contact information:

Stephen Sweeney – Senate President (856) 251-9801 (West Deptford), (856) 455-1011 (Bridgeton), (856) 339-0808 (Salem)

The following Senate Judiciary Committee who are also refusing to give Mrs. Patterson a hearing.