New Jersey’s top legislative leaders assured a group of municipal officials Wednesday that they are addressing oft-raised concerns about taxes and affordability.

For starters, they said the latest state budget beefed up funding for property-tax relief and included another big increase in state aid for public schools, which rely heavily on revenue raised from property taxes to balance their own annual budgets.

The state’s public-worker pension obligations were also fully funded and several new tax breaks were established, including a state-level child tax credit and a temporary sales-tax holiday for back-to-school items.

Democratic leaders who control the Legislature stopped short of a commitment to provide immediate state assistance and offset the rising costs of public-worker health benefits.

“The work we have done will have a positive impact on New Jerseyans going forward, and we’re going to continue to work to do that,” Assembly Speaker Craig Coughlin (D-Middlesex) said during the New Jersey State League of Municipalities convention in Atlantic City.

However, the Democratic leaders who control the Legislature stopped short of a commitment to provide immediate state assistance and offset rising public-worker health-benefit costs. Those, many local government officials have said, are likely to bring on property-tax increases next year.

In fact, rising benefits costs — totaling more than 20% year over year, in many instances — can be levied outside the state’s 2% cap on annual property-tax increases. And they threaten to erode the value of the state-funded relief checks even as many residents are still submitting applications.

A new program

Meanwhile, Republican legislative leaders who participated in the panel discussion said the new property-tax relief program, as currently written, is only temporary. They also faulted Democrats for not doing more to restore funding from energy taxes that the state has for years diverted from local governments to protect its own bottom line.

“The money belongs to the municipalities,” said Assembly Minority Leader John DiMaio (R-Morris).

The average New Jersey property-tax bill increased last year to a record-high $9,284, according to Department of Community Affairs data.

But one thing the legislative leaders all agreed on during the discussion was that lawmakers in Trenton have found a way to work more cooperatively than their counterparts in Washington, D.C., even if they don’t always agree on the specific details of every policy.

“People in Washington, D.C. could probably take a lesson from how we do things,” said Senate President Nicholas Scutari (D-Union). “We may disagree, but we haven’t been disagreeable.”

Record-high taxes

In all, the average New Jersey property-tax bill increased last year to a record-high $9,284, according to data compiled by the Department of Community Affairs.

And while the rate of annual growth has been slowing in recent years, average bills have gone up collectively by more than $1,500 overall since 2011, before adjusting for inflation, according to a recent NJ Spotlight News analysis.

Property taxes are levied at the local level in New Jersey, but concerns about high property taxes are often a factor in statewide elections and legislative contests. That was the case again last year, when Gov. Phil Murphy was nearly unseated by a Republican challenger and Democrats lost seats in both the Senate and Assembly.

Under the new Anchor property-tax relief program enacted in the wake of last year’s election results, homeowners making up to $150,000 annually are eligible for a $1,500 benefit. Those making between $150,000 and $250,000 annually are eligible to receive a $1,000 benefit.

Anchor benefits and details

Renters earning up to $150,000 annually are also able to collect Anchor benefits totaling $450. The application deadline is Dec. 30, and benefits are expected to be paid next spring.

“That’s a far-reaching program that allows people, as we face the challenges of inflation, and the kind of things that have been driving people crazy throughout the last year, it gives them a little bit of help,” Coughlin said.

“We’ve made it a real priority and that’s how you really get things done,” he added.

‘We can talk about how we try to shift things around, but if you don’t go after the cost drivers, and come up with real reforms, then, quite frankly, you’re dealing with it, year-in and year-out.’ — Senate Minority Leader Steve Oroho

When the discussion shifted to affordable housing and the struggles many municipal governments have faced trying to keep up with state-mandated housing obligations, Coughlin said the Anchor program could play a role there as well.

“The Anchor program will help people stay in their homes, we hope,” he said.

For his part, Scutari said the state in recent years has benefited from rising revenues and, in response, lawmakers are “giving that money back to the taxpayers,” including through the Anchor program.

“This past year’s (budget) was one of the best budgets I’ve ever been a part of, and I’ve been in the Legislature close to two decades,” Scutari said.

Marijuana sales

He also highlighted ways the recent move to legalize recreational marijuana sales could benefit municipal budgets by providing a new revenue stream, even if some communities have been reluctant to fully embrace marijuana businesses within their borders.

“I think that’s something the leaders in this room should give a second look at, or they’re going to miss the boat,” Scutari said.

But to really address the affordability concerns, Senate Minority Leader Steve Oroho (R-Sussex) said there needs to be more attention paid to “cost drivers.” He called for renewed discussions on changes to the pension and health benefits that are provided to public workers in New Jersey.

Those comments were made as municipal governments are facing rising costs related to both worker pension and health benefits next year, and despite recent calls for state assistance, it remains to be seen whether any aid will come from Trenton in the coming months.

“We can talk about how we try to shift things around, but if you don’t go after the cost drivers, and come up with real reforms, then, quite frankly, you’re dealing with it, year-in and year-out,” Oroho said.