DeCROCE STATEMENT ON CONSTITUTIONAL PROBLEMS
AFFLICTING DEMOCRAT PROPERTY TAX PLAN

Assembly Republican Leader Alex DeCroce made the following remarks at a news conference today regarding constitutional problems with the property tax relief plan, A-1, approved by the Assembly last night:
Here we go again.

Twice in the past we warned the Democrats that they were on the verge of approving state budgets that were based in part on unconstitutional borrowing. Twice they ignored us. And twice they were smacked down by the courts.

Now it appears they are hell bent on ignoring the state constitution again. Except this time they are risking property tax relief that homeowners desperately need and can't afford to lose just because the Democrats refuse to play by the rules or listen to reason.

In a moment, Assemblyman Rick Merkt and Assemblywoman Marcia Karrow will explain why we now believe that the property tax plan the Democrats rammed through the Assembly last night without any public comment or careful legal review is unconstitutional.

But, first, I want to make it abundantly clear why we are here today.

We are NOT here to block property tax relief.

We are here to call on Democrat legislative leaders ... and Governor Corzine in particular ... to stop this train wreck before it happens.

The solution is simple, and there is more than enough time for the Legislature to avoid calamity.

Governor Corzine and the Democrats have two choices.

Either they can submit to the voters this year an amendment to the state constitution that would permit a multi-tiered system of property tax credits for homeowners based on income ... despite the restrictions imposed by the constitution's uniformity clause.

Or ...

If the Democrats absolutely refuse to consider a constitutional amendment - because, let's face it, an amendment would prevent them from changing the tax credits from year to year and force them to fully fund them - then the only bill it can pass that could withstand a constitutional challenge is one that provides the same tax credit to EVERYONE.

Assembly Republicans hope Governor Corzine and the Democrats see the wisdom of taking the best of both alternatives.

We urge them to seriously consider our proposal to provide a 30 percent property tax credit for all households making $200,000 or less a year, 20 percent tax credit for everyone else and guarantee this relief will be permanent by submitting a constitutional amendment to the voters.

There is time to do the right thing. For the sake of all taxpayers, we hope they don't squander the opportunity.

Before I ask Assemblyman Merkt to explain why the bill the Assembly passed and sent to the Senate last night has severe constitutional problems, I wish to make two other quick points.

First, most of the members of my caucus voted for A-1 last night. We did so because the sponsors insisted the bill would pass constitutional muster because OLS would have warned them if there were a problem. Some of us didn't share their confidence, but we took them at their word.

But several things happened between then and now. Our staff worked feverishly last night and this morning to review existing Attorney General opinions and case law. The more we saw the less convinced we were that the representations made by Democrats were correct. And then we heard a news report on Millennium Radio this morning that confirmed our suspicions.

I want to commend New Jersey 101.5 radio for taking the time to do something the Democrats failed to do during this entire process and actually ASK legal experts if what the Democrats are pushing is constitutional.

If the Democrats won't listen to us, maybe they will keep an open mind to what constitutional scholars have to say.

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For more information, contact:

Assembly Republican Leader Alex DeCroce / 973-984-0922
Assembly Republican Press Office / 609-292-5339