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Economics professor helps reform rising New Jersey property taxes

Reforming New Jersey's controversial property tax system is no easy task – but professor David Bradford is now part of the process.

The Woodrow Wilson School Professor of Economics and Public Affairs was recently appointed by Gov. Christie Whitman to serve on a commission charged with suggesting ways to alleviate the state's property tax burden.

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Soaring property taxes nearly convinced a majority of voters to unseat Whitman last year in favor of a lesser-known Democratic challenger, Jim McGreevey.

The panel's mission is to "make meaningful suggestions about ways in which state government can help municipalities, schools and counties control local tax rates," according to a statement released by Whitman.

Bradford, who has served on other state commissions, including the Economic Policy Council of New Jersey, said he thinks the political climate is ripe for property tax reform.

"I think that the rationale (for the formation of the committee) is largely that property taxes were very prominent in the last gubernatorial election," he said.

However, Bradford predicted that the committee – made up of 23 members including the state treasurer – will recommend small changes rather than sweeping revisions.

Proposals

The group, which has already met three times, will submit recommendations to Whitman by Aug. 1.

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Bradford said one proposal the committee is considering would force developers to pay a special fee that could help offset local property taxes.

Another initiative – one which Whitman favors, according to Bradford – would encourage local governments to consolidate services to save money.

"The fundamental issue here is not so much property taxes, it's local spending," he said.

One controversial aspect of New Jersey's tax system is its reliance on property taxes as the primary means of funding local schools. The state has been under a court order to reform its system of education funding since the 1970s. The state Supreme Court has declared a series of proposals unconstitutional over the past 20 years.

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However, Bradford said it is unlikely the committee will suggest any radical changes in the state's system of education funding.

"I'll be surprised if we come up with any magical new cure," he said, adding that the current system is "very elaborate" and not likely to be completely dismantled.

While the commission's proposals will most likely be limited in scope, Bradford thinks there is a reasonable chance the suggestions will be endorsed by the governor and the state legislature.

"I can only say what the politicians think – they think there's a possibility," he said.