Property Tax Boost for Pensions in NJ

The Christie administration lowered its assumptions of what the state will earn on its pension investments from 7.65 percent to 7 percent, according to state actuarial reports released Tuesday, and the incoming Murphy administration blasted what, according to the figures in the reports, would amount to an 18% increase in contributions for the state (from $2,878,098,763 to $3,396,369,568).

But it is taxpayers at the local level who are set to take the big hit when you look at their numbers.

15 responses to this post.

  1. Posted by skip3house on December 26, 2017 at 8:38 am

    If you have ‘Office’, this is sensible.

    Reply

  2. Posted by Anonymous on December 26, 2017 at 8:45 am

    Wonder what the numbers look like after the 2% cap expires?

    Reply

  3. Posted by George on December 26, 2017 at 9:47 am

    Net Normal Cost and Amortization are what exactly? Is Net Normal Cost what should be paid for active workers during the current fiscal year and Amortization what needs to be paid over a certain time period (30 yrs for example) because of underfunding during past fiscal years?

    It is not clear if these local amounts are equal from town to town. Is it possible that wealthy towns are paid in full while poorer ones are where the underfunding is? If the pension shortfall is to be paid through property tax increases, expect the need for zoning law changes to allow for high density housing, which I see happening now anyway. Anectdotally, in Monmouth county I see yard signs saying stop the blah blah blah development followed by the building of the blah blah blah development.

    One theory is all taxes should be property taxes: See Georgeism a theory of economics advocated by Emma Lazarus and Leo Tolstoy but nobody recently until a mysterious article appeared in the Economist.

    Land-value tax: Why Henry George had a point
    Ideal in theory, elusive in practice: the case making landowners pay for the benefits which location gives them

    https://www.economist.com/blogs/freeexchange/2015/04/land-value-tax

    https://en.wikipedia.org/wiki/Henry_George
    http://www.henrygeorge.org/bob/

    Emma ‘Statue of Liberty poem’ Lazeras writes a poem advocating Georgeism
    https://jwa.org/media/progress-and-poverty

    Reply

    • Posted by dentss dunnigan on December 27, 2017 at 8:06 am

      Well if it’s true that wealthy towns have been making their full contributions for years and have pensions that are in very good shape ….we’ll soon see the Abbott district ruling where by wealthy towns will be paying for the Camden’s and Newark’s pensions as well as their own …From each according to his ability, to each according to his needs.. Karl Marx

      Reply

      • Posted by Anonymous on December 27, 2017 at 9:45 am

        As well they should in this ‘free market’ economy!

        Reply

        • Posted by dentss dunnigan on December 27, 2017 at 4:52 pm

          I think you need to educate yourself on how a free “market economy” works …it certainly dosen’t ask someone else to pay your bills for you .that’s called socialism

          Reply

          • Posted by Anonymous on December 27, 2017 at 5:08 pm

            It’s really something when individuals who choose to live somewhere have selective memory on their ‘free market’ option to choose somewhere else. But ah yes we’ve heard it before it’s different…..

    • Posted by Anonymous on December 27, 2017 at 12:16 pm

      Disinformation rule 18: Emotionalize, Antagonize, and Goad Opponents. If you can’t do anything else, chide and taunt your opponents and draw them into emotional responses which will tend to make them look foolish and overly motivated, and generally render their material somewhat less coherent. Not only will you avoid discussing the issues in the first instance, but even if their emotional response addresses the issue, you can further avoid the issues by then focusing on how “sensitive they are to criticism”.

      Reply

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