I just saw this article regarding Pennsylvania and municipal consolidation:


Bill calls for eliminating Pennsylvania's municipal governments, switching to county-based system to save taxpayers money
By JAN MURPHY, The Patriot-News
April 28, 2010, 12:00AM

The Patriot-News, fileMarysville is one of 2,562 cities, townships and boroughs across Pennsylvania that Rep. Thomas Caltagirone says should be absorbed by the state's 67 county governments.Pennsylvania has a lot of municipalities.

There are cities of varying sizes, townships, boroughs and even one town. All told, there are 2,562 of them ? each with their own elected officials.

That?s about 2,495 too many for Rep. Thomas Caltagirone.

The Berks County Democrat has introduced legislation calling for what he describes as a ?massive shift? in the operations of local governments. His bill would call for a state constitutional amendment to have Pennsylvania?s 67 county governments absorb all the municipalities within their borders, and operate under a single countywide structure.

He cites a number of reasons for the idea: the rising cost of government and increasing property taxes, landlocked communities with stagnant tax bases and a loss of industries and business.

?You have such duplication of services with boroughs, townships, cities and counties, it doesn?t really make a whole lot of sense on economies of scale,? he said. ?We should be able to hopefully save some money through more efficient operations provided on a countywide basis.?

Even supporters who praise it as a novel proposal suggest it has virtually no chance of passage. Caltagirone knows not everyone will like the idea, particularly local officials whose jobs would disappear.

?All I?m saying is, ?Let?s take a look at it,?? Caltagirone said. ?Why can?t we take the time to look at the merits of this issue? If it makes good common sense and delivers services at a much lower cost, should we not at least consider it??

He proposes a county executive to oversee day-to-day operations and an elected county council to approve budgets and handle policy-making chores. His plan would not affect school districts. He said he had no interest in ?throwing even more fuel to the fire.?

Since he introduced the bill a week ago, he said he has been flooded with e-mails and phone calls from people telling him to withdraw the bill. Only a handful of legislators put their names on as co-sponsors. One, Rep. RoseMarie Swanger, R-North Lebanon Twp., says her name was put on by mistake and has since been removed.

Caltagirone knows making such a change would be a long process. A constitutional amendment requires identical versions of the bill to pass the House and Senate in two consecutive legislative sessions. Assuming that happens, it would then go to Pennsylvania?s voters for final approval.

But he said it?s time to start the conversation.

Some midstate officials said they hope it goes beyond talk.

?It needs to become more than a conversation,? said Dauphin County Commissioner George Hartwick, a Democrat and a former mayor of Steelton. ?There?s going to be backlash from local townships and boroughs and municipalities because of the [loss of] control thing, but the voters should weigh in loud and clear and demand more efficiencies out of our government operations.?

Likewise, New Cumberland Borough Council President Jack Murray, a proponent of police service consolidation, admits money likely could be saved by consolidating municipal governments.

But he said the parochialism could stand in the way.

?People are more concerned about losing their [community] identities than reducing their costs,? Murray said. ?I don?t think it just pertains to politicians but residents as well.?

Lower Swatara Twp. Commissioner President Franklin Linn also sees merit to the idea.

?What he is looking at very wisely is local governments can?t afford all these things that they have done with police, health inspectors, code enforcement, maintenance guys to do the roads,? Linn said.

But he said residents are accustomed to having local government provide road repairs and police protection.

?I don?t think it?s a bad idea, but I?ll never see it happen,? Linn said.

Senate Majority Leader Dominic Pileggi, R-Delaware County, considered it a novel idea, but he said the state shouldn?t impose it on communities. He said the idea should come from the people.

That, too, is the position of the County Commissioners Association of Pennsylvania, said Douglas Hill, the executive director. But he agrees with Caltagirone that it?s an idea which deserves some discussion.

?I do have individual counties that have expressed a desire conceptually in doing more? beyond the countywide consolidation of 911 dispatch centers and solid waste management, Hill said.

Caltagirone said southern states have county-based government structures, so Pennsylvania would have a model to follow.

?If it proves to be wrong, prove me wrong,? he said.

We gotta pay for ALL these endless wars and bailouts somehow!

Jersey City, I"M GONNA EAT YA !!!!!!!!!!

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I'm just reading his speech now.

You can read it here;
http://www.politickernj.com/editor/37 ... ss-new-jersey-legislature


I did see this in the text. I believe it is currently capped at 3.5%.

I have a question about Christie's speech today. Did he say the state was going to come after the 3.5% enterprise zone taxes collected? How much does Jersey City collect from this? Regardless, if they take away school funding, we are in big trouble. The city needs to figure out ways to save a lot of money.

Can we sue council members personally for breach of fiduciary duty?

Hudson County Fire Department! This would be beneficial to the residents of Hudson County. As long as they do not create the disaster in North Hudson. Savings would come with the reduction of Chief of the Departments from 6-1. Also the closing of firehouses that border other cities. Consolidation of Companies into larger modern houses. The savings would not be dramatic, but it will ease the burden on the taxpayers.

GrovePath - you know I am on board! Viva Consolidation!

What do you have to do to flip this switch??!!

sounds like a backdoor tax increase to me....LOL!

That's all well and good until at some point in the future inflation is running at 4-5% a year for a decade.

You can't amend yourself out of idiocy.

I assume cities would figure out a way around it. They could start billing us for garbage, police and fire services separately.

Taken from the following article: http://www.nj.com/news/index.ssf/2010 ... istie_and_new_jersey.html

"The governor's proposal will also include converting property tax rebate checks to credits and a constitutional amendment limiting annual property tax hikes to 2.5 percent, The Star-Ledger reported Sunday.

That means eligible residents would not collect any direct property tax relief this calendar year, instead receiving credits around April, the officials said. State spending on direct services would also be constitutionally barred from increasing by more than 2.5 percent each year."

Will this measure save us from the proposed 25% increase in Jersey City? And how can our city council propose an increase that is 10X the amount being discussed above and live with themselves?

I just checked the online tax site and my taxes just went up 1k per year. I haven't received any letter from Jersey City or anything. New quarter taxes are due Feb 1st and this is the first time I'm hearing about it.
Plus these A HOLES don't even mail me a bill any longer. I have to go online to check how much they want this time.

Has anyone else's gone up without notification?

http://www.cityofjerseycity.com/WebTaxInquiry/AccountSearch.aspx

The whole pension issue will eventually come to head, but it's all make believe. The workers are simply not getting their pensions.

They'll get varying percentages based on how long they've been in the system but it isn't getting fully funded and it is the same for pensions all across the country.

Right now they make noises about paying because they don't want to deal with the flak (maybe we can hold out long enough for the next politician to take the fall), but there is no money, there is no prospect of getting more money and no one in the world can invest well enough to make up the gap.

The 'pension deficit' is a joke and the one budget item I am not at all worried about because it isn't being paid.

Sucks for the people I know who are in the government but I've been telling them to plan on not getting paid for years.

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Amen, agree 100%, too many people on the city and county payroll, a lot of the jobs can and should be consolidated, no reason why some municipalities should have a sheriffs office and police dept overlaping the same jurisdication.

Fire depts should be consolidated as well, it worked for the north hudson regional, why not for example the south hudson regional???

The cities and townd are going to have to make some tough decisions if they have any intention on surviving the times and if that means chopping heads off the payroll, well then Thats life.

Inefficiency in local govt should be the exception and not the standard!

Fund N.J.'s pensions: Towns, state can't keep putting it off

By Star-Ledger Editorial Board
January 08, 2010, 5:05AM


When then-candidate Chris Christie met with The Star-Ledger Editorial Board last fall he would consider deferring the state's pension payments if elected.

A pension deferral bill has been pulled from consideration in state Senate and Assembly committees, but the idea could be resurrected in the new session. It would allow municipalities to defer half of their pension contributions for the second year in a row.

Because mayors are trembling, and because legislators have a history of hiding under desks when faced with a fiscal crisis, a deferment bill eventually might pass ? even though the state?s public-worker pension system is already dangerously underfunded.

So, the question becomes: Will Chris Christie ? the tough-talking prosecutor who promised to be a fiscal hanging judge ? sign the bill if it reaches his desk? Let?s hope not.
Christie recently said he is against letting the towns off the hook, and he criticized Gov. Jon Corzine a year ago for allowing towns to defer up to a half-billion dollars in pension payments. But Christie also told The Star-Ledger in October that, if elected, he would consider deferring the state?s pension payments. It?s hard to see how it would be OK for the state to ignore its pension responsibilities while forcing municipalities to ante up. Is Christie already infected with the Trenton epidemic ? the pay-later flu?

Sen. Sandra Cunningham (D-Hudson), the sponsor of the deferment bill, says she is worried about Jersey City?s solvency. Without a deferment, Mayor Jerramiah Healy says the city would have to find $15 million in cuts. But Cunningham?s proposal ? to toss the grenade into the next generation?s foxhole ? is the kind of fiscal folly that has pushed the state to the brink.

William Dressel, director of the New Jersey State League of Municipalities, says towns need the break because they are facing the loss of millions in state aid and "are looking at unprecedented foreclosures (and) a proliferation of successful tax appeals." But Dressel wants to delay the inevitable.

Without the deferment, municipalities would have to cut spending and/or raise taxes. Yes, it will sting. Towns would have to make the tough choices ? layoffs? furloughs? ? they have been avoiding. They also might (finally) work toward municipal mergers. Meanwhile, the governor and Legislature should get to work on a permanent solution ? trimming future benefits (pension and health) to an affordable level.

A recent study estimates the pension fund is underfunded by $50.6 billion, but some experts say the actual amount is closer to $60 billion. Sooner or later, the debt has to be paid. At the current rate of payout, the fund would go broke in roughly 12 years.

Orin Kramer, chairman of the State Investment Council, says forcing municipalities to make their full pension payments could pry the economy?s fingers from the ledge just as it?s pulling itself up. But that argument ? that it?s not the right time ? is one of the reasons the state is in this jam. Paying now, even if it?s going to hurt, is better than paying later because, history shows, New Jersey never gets around to paying later.
No one ever escaped from a deep hole by continuing to dig.

State spending per capita:
Kaiser State Budgets Per Capita

NJ actually isn't so bad considering cost of living in the area. Probably doesn't take into account municipal spending though.

The problem with NJ government is not a lack of money - there is plenty of it. There is a lack of self control and budgeting. If you continue to feed the fat animal it will continue to eat, regardless of whether or not it actually needs the food. While yes it will "hurt" at first, reducing aid seems to me the most likely incentive to get the cities to actually act responsible. Maybe it could even force Jersey City to create...dare I say...a budget...

I really hope Christie can hold out against political pressure, because the cities really need to believe that they aren't going to get the money before they change their ways.

While I don't think you have to give up the concept of cities and townships, there are certainly some things that could be handled at a county level as opposed to a city level. Board of Education is a great example.

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I think consolidation should be forced on everyone in NJ - perhaps largely along County lines - with possible rare exceptions made for areas that already historically have been working together.

There are something like 600 fire departments in NJ -- not to mention the real big waste -- independent school districts!

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Must be lots of places looking to consolidate with JC ;)

This is why we get a double dip recession. The same things is happening all over the country and, like it or not, government is a huge portion of the economy. You can't have it cut back almost everywhere and sustain an expansion.

Maybe it's best in the long run, but in the short term we're in for a world of hurt.

Consolidation is the answer!

Yup that's exactly what I thought of when I read this article. I was looking to find out what the consquences were, but it turns out Ford sent funding afterall a few weeks after this headline. The city was able to work things out. Not that I remember any of this I was less than year old when it happened but I remember my Dad talking about this.

Here an interesting synopsis of the New York City budget crisis of 1975 and the famous Daily New Headline:

New York City on the brink

A headline writer for the Daily News, summed up Ford's response to New York City's 1975 fiscal crisis that way:



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The headline should read:
Christie to Cities: DROP DEAD!

Christie warns cities: You can't look to Trenton for aid

Thursday, January 07, 2010
Lisa Fleisher
Star Ledger

STATEHOUSE
Gov.-elect Chris Christie said yesterday he will cut off special state funding to struggling cities, saying they must cut spending and no longer rely on Trenton.

But before Christie takes office, the state is set to give about $72 million to Camden, Bridgeton, Union City and Paterson in aid designed to keep property taxes from rising while maintaining basic government services.

Christie also said cuts to the $1.5 billion in regular givebacks to cities and towns across the state are "on the table" as he prepares a painful budget due March 16.

The state budgeted $141.9 million this fiscal year in aid for struggling cities and towns, down from $170.3 million, but Christie said he is putting municipalities "on notice" the money will not be there at all next year.

"You better budget based upon what you can raise, because we don't have the money to continue over and over again to shovel out extraordinary, special municipal aid to municipalities who have not responsibly budgeted, no matter where you're located in the state," he said. "The state can no longer be your court of last resort. We are broke."

DOUBTS ON CUTS

The programs targeted are designed to help towns and cities keep property taxes lower while still maintaining services, with "extraordinary aid" aimed at municipalities with short-term problems and "special aid" for longer, structural problems, said Susan Jacobucci, chair of the local finance board and director of local government services in the Department of Community Affairs.

Bridgeton, for example, a town where the average income is $31,000 and the average home is worth $58,000, is asking for $2.5 million. Mayor Jim Begley said the Cumberland County seat has been making progress, seizing property from people who do not pay taxes and lowering the police force's target payroll. The next step would be closing libraries and senior citizen programs. But he doubts the new governor will be able to practically cut payments completely to cities such as Camden.

"Chris can say that, but I don't see them going full turkey on towns of that size," said Begley, a Republican. "It's always easy to say that somebody's not doing their job when you haven't walked in their shoes, and you haven't made those determinations."

Republicans have long attacked the special and extraordinary aid as political gifts to Democratic strongholds. Assemblyman Joseph Malone (R-Burlington) said it had to stop.

"SAME OLD NONSENSE'

"It's the same old nonsense again and again, no matter what the people say," he said. "As long as we continue to subsidize mismanagement and corruption and bad municipal practices, it won't stop."

Jacobucci said the cities served are the state's poorest, with large populations and few sources of tax income. She could not say precisely how much of the budgeted aid has already been released or how much was left.

"In many cases the cities would have to shut down if they didn't get this special municipal aid," she said. "It's wrong to say that you're giving money to towns that are mismanaged or corrupt."

The cities could also face another financial blow: A bill that would allow them to delay contributions to pension funds for another year does not appear to have sufficient support in the Legislature. Jersey City Mayor Jerramiah Healy said the bill would save the city $15 million.

Lisa Fleisher may be reached at (609) 989-0322 or lfleisher@starledger.com. Claire Heininger may be reached at (609) 989-0267.