CAMDEN, HUDSON AND MERCER COUNTIES JOIN

ESSEX COUNTY EXECUTIVE DIVINCENZO FOR

MEANINGFUL PROPERTY TAX RELIEF INITIATIVE

Three Counties Unite with Essex County Executive DiVincenzo, Senate President Codey and Assemblyman Payne to Have State Pay for Prosecutor's Offices

Newark, NJ – On Wednesday, September 15th, Essex County Executive Joseph N. DiVincenzo, Jr. received support from Camden, Hudson and Mercer Counties, who endorsed Assembly Bill A-2806, which is sponsored by Assemblyman William D. Payne. The State takeover measure is also being supported by Senate President Richard J. Codey. If signed into law, the initiative would bring real property tax relief to taxpayers by removing one of the most expensive departments from County budgets.

Assembly Bill A-2806 establishes the Essex County Prosecutorial Unification Pilot Program Act of 2004. This would have the State take over the Essex County Prosecutor’s Office over a 10-year period. Each year the State would assume an additional 10 percent of the Prosecutor’s Office until the State is paying 100 percent for the office at the end of 10 years. The Act also makes all employees of the Essex County Prosecutor’s Office State employees and would have the State reimburse Essex County for office space.

More than 60 percent of Essex County’s annual budget – and about 50 percent of the county’s total property tax levy – pays for State-mandated costs associated with the criminal justice system. Included in these costs is the Prosecutor’s Office, which has a budget of about $35 million for 2004. The Prosecutor’s Office also has the option of appealing to the State Attorney General’s Office if it believes the County Administrative branch has not provided adequate funding. The Attorney General then has the ability to force the County to provide additional funds to the Prosecutor’s Office by filing a Bigley motion. Because of Essex County’s unique geographic location, more than one-third of the criminal cases in New Jersey go to trial in Essex County. As a result, Assistant Prosecutors in Essex County have the largest caseloads in the State.

“When I took office, I knew that property taxes would be an issue we would have to deal with head on. In order to start, we have introduced our budget on time, reduced costs, cut unnecessary spending and eliminated vacancies – all without affecting services,” DiVincenzo said. “But these efforts only begin to make a dent because state-mandated costs, such as the Prosecutor’s Office, make up 60 percent of our budget. Because my administration understands our taxpayers have an unfair burden, we have been lobbying to have the State pay for the Prosecutor’s Office,” he added.

"Phasing in the takeover will ease the tax burden on our residents and eliminate the disparity of salaries, resources and caseloads that currently exists between the Counties," the Essex County Executive added. “When you talk about property tax relief you have to start somewhere and you have to start now,” he noted.

"We've been through this before when the State took over the court and welfare systems, so we know it works," said Senate President Codey. "In fact, we all know that lowering county costs provides real local tax relief. County taxpayers shouldn't have to keep funding an office their elected representatives don't even control," he added.

Following DiVincenzo's initiative, Essex, Camden, Hudson and Mercer Counties would turn over their Prosecutor's Offices to the State during a 10-year phased in takeover.

According to figures compiled by the Essex County Treasurer's Office, the 2004 estimated base year cost for the Prosecutor's Officers in Essex, Camden, Hudson and Mercer Counties is $77.3 million. In the first year of the program, the four counties would pay 90 percent of the budget for their Prosecutor's Offices, or a total of $69.57 million, and the State would pay 10 percent, or $7.73 million. For each of the next 10 consecutive years, the State would assume an additional 10 percent each year until it was paying for 100 percent of the Prosecutor's Offices in the 10th year.

“Strong support for this pilot program is evidenced by the presence of representatives from Camden, Hudson and Mercer Counties. They will be added to the pilot program by an amendment that will be presented at the Assembly Judiciary Committee meeting on September 30, 2004,” Assemblyman Payne said. “This legislation speaks to the notion of equity and property tax relief for residents of four New Jersey counties which have disproportionately high costs for the operations of their prosecutor’s offices,” he added.

For Essex County, the 2004 estimated base year cost for its Prosecutor's Office is $35 million. In the first year, Essex County would pay 90 percent, or $31.5 million, and the State would pay 10 percent, or $3.5 million. The second year, Essex County would pay $28 million and the State would pay $7 million, or 20 percent.

For Camden County, the 2004 estimated base year cost for its Prosecutor's Office is $17.3 million. In the first year, Camden County would pay 90 percent, or $15.57 million, and the State would pay 10 percent, or $1.73 million. The second year, Camden County would pay $13.84 million and the State would pay $3.46 million, or 20 percent.

“This is a long time coming, but having the State assume responsibility for the Prosecutor’s Office is something that we need to do. This legislation will help us to control our expenditures and bring real property tax relief to our residents. Camden County fully supports this initiative,” said Camden County Freeholder Deputy Director Edward T. McDonnell. “Joe, I don’t know of anyone else in the State who could have moved this so far along. You can count on Camden County to see this through,” he said to DiVincenzo.

For Hudson County, the 2004 estimated base year cost for its Prosecutor's Office is $15.5 million. In the first year, Hudson County would pay 90 percent, or $13.95 million, and the State would pay 10 percent, or $1.55 million. In the second year, Hudson County would pay $12.4 million and the State would pay $3.1 million, or 20 percent.

"The proposed legislation will provide much needed property tax relief to the residents of Hudson County," said Hudson County Executive Thomas A. DeGise. "It is relief they have long deserved. New Jersey's four urban counties are uniquely suited for this pilot program because each faces higher volume, as well as longer and more expensive criminal investigations and trials. By moving toward this much-needed reform incrementally, the State will also ease the overall transition in terms of the financial costs and administrative changes required while beginning to relieve right away the unfair burden now carried by urban counties when it comes to the administration of justice in New Jersey."

For Mercer County, the 2004 estimated base year cost for its Prosecutor's Office is $9.5 million. In the first year, Mercer County would pay 90 percent, or $8.55 million, and the State would pay 10 percent or $950,000. In the second year, Mercer County would pay $7.6 million and the State would pay $1.9 million, or 20 percent.

“Property taxes are beginning to cripple people’s ability to live here and stay here,” said Mercer County Executive Brian M. Hughes. "This legislation will most importantly provide immediate tax relief to the citizens of Mercer County but it also makes sense given the structure of the law enforcement system in this state," he addd.

Before the 10-year phase in State takeover can occur, it must be approved by the State Senate and Assembly and signed into law by the Governor.

The press conference is the latest step in DiVincenzo’s aggressive campaign to have the State pay for the Prosecutor’s Office. Several years ago, DiVincenzo began lobbying the Legislature to have the State pay for the Essex County Prosecutor's Office. He also organized a write-in campaign in December 2003 that asked residents show their support for the initiative by mailing a postcard.

In April 2004, Essex Executive DiVincenzo, Senate President Codey and Assemblyman Payne hosted a press conference in the Statehouse to show there was united support among Essex County elected officials for the initiative. State, County and Municipal elected officials from Essex County attended the press conference and DiVincenzo produced resolutions from each of the 22 Essex County municipalities in support of the State takeover.

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