Puliti Challenges Senate President at Town Hall Meeting

New Jersey Senate President Stephen Sweeney (D-West Deptford) visited Lawrence Township last night (March 21) to hold the first of a series of “Town Hall” meetings across the state to promote a tax relief plan that was unveiled earlier this month by the Senate Democrats in response to an earlier tax relief plan put forth by the Gov. Chris Christie, a Republican.

What Sweeney got during the hour-long meeting held at the Lawrence Township branch of the Mercer County Library was an earful, particularly from Lawrence Township Councilman Greg Puliti.

Puliti, ignoring an attempt by Sweeney to stop him, criticized both Christie’s plan and the one put forth by the Democrats and instead challenged the Senate president and other legislators to provide real relief to taxpayers by giving municipalities the full amounts due to them in the form of the “energy taxes” currently paid directly to the state by utility companies and also by making nonprofit institutions and organizations pay their fair share of property taxes.  

(Audio of the entire meeting can be listened to by clicking on the file in the media box above.)

Christie’s proposal would result in a 10 percent cut to state income tax as paid by all taxpayers, regardless of their income. The Senate Democrats’ plan, by comparison, would provide credit to be used in paying state income tax, with that credit amounting to 10 percent of a taxpayer’s property taxes – and not income – for all taxpayers making $250,000 or less.   

Christie’s plan is “an income tax scheme for the wealthy… We have come up with a plan that’s a property tax cut for the middle class,” Sweeney said at the start of last night’s meeting in Lawrence.

“The plans are dramatically different. His [Christie’s] benefits the wealthy, because there’s no limit… A millionaire is going to get $7,200 off under his plan; someone making $50,000 gets $81. That’s not fair. The middle class is the community that needs the relief. Under the Democrat plan all the money goes to people under $250,000, and it’s not an income tax [cut], it’s a property tax cut. We have charts that we can show you that everything we’re doing is based off your property taxes. His is based off of income tax… The middle class are the ones who are struggling. The wealthy aren’t really struggling in this state. This isn’t class warfare. The middle class just needs the help. The wealthy don’t.”

According to a chart displayed by Sweeney during the meeting, the average Lawrence Township family would save $257.21 under Christie’s plan compared to $696.30 under the Senate Democrat’s plan.

“Under this governor, property taxes have gone up 20 percent [throughout New Jersey],” Sweeney continued. “Things have not gotten better; they’ve gotten more expensive. I know we have some local officials from this community here. Understand something: they’re facing some really tough times. Because when you cut school aid, when you cut municipal aid, when you cut rebates – what happens? Property taxes go up. And that’s what’s happening all around the state…”

Christie’s plan “is for millionaires. Mine is for the middle class. This isn’t sexy, exotic, exciting… We’re taking the dollars that he says are available and providing them for property tax cuts for people [earning] $250,000 and below,” Sweeney said. “It’s not that hard to figure out. We took that money and put it in a place where it’s needed. The middle class are the people who will actually spend the money they get from these cuts, unlike the wealthy. So it’s not a very sexy plan; it’s not a very sophisticated plan… I don’t agree with protecting millionaires… My plan is for the middle class.”

Puliti – a Democrat who has been on Lawrence Township Council almost continuously since 1996 and served as mayor in 1998, 2000, 2003, 2007 and 2011 – was the first person to step forward when Sweeney called for questions.

Puliti did not hold back.

“Unfortunately, I feel, with all due respect, your idea is not sustainable and does not solve the budget needs of our community. In New Jersey, we need fundamental changes in the tax code to make it fair for all classes of residents. And I would like to take a minute to give you a simple two-part alternative for direct property tax relief,” he said, reading from a prepared statement.

Before offering his solutions, Puliti offered Sweeney some background on the various steps – including staff reductions, shared services agreements, wage freezes, elimination of health benefits after retirement for new hires, and energy audits – that Lawrence Township has taken in recent years in an effort to curb costs.

“Lawrence is a fiscally responsible town and we have been doing all the right things, yet residents next month will be forced with a referendum to raise taxes above the 2 percent imposed limit,” Puliti said. “If the referendum fails there will be a user fee placed on us to collect our trash. Trash collection is one of the basic services we have forever supplied to our taxpayers. We would not have to go to the referendum if you adopt my ideas for direct property tax relief.”

Sweeney attempted to interrupt Puliti at that point, saying, “I get it.”

 “Excuse me, I’ve just got another paragraph… Please, sir, it’s my town,” Puliti, not to be silenced, responded.

Then he offered his suggestions. “The first part has to do with the state stopping the practice of withholding property tax payments by energy companies and telecommunication companies that have physical locations in our town. Have them pay money directly to us, just like our residents do, instead of the state collecting those payments and disguising them as state aid, and giving us a partial payment and keeping the rest to balance the state budget.

“The second part of my relief is it’s time for the state to stop all non-profit entities from being property tax exempt. Every tax-exempt property uses township resources such as rescue services, police and the roads that we repair. It’s not fair to the taxpayers of this town to subsidize nonprofits when it comes to paying their fair share for township services,” Puliti said. “We would not be going to a referendum in Lawrence Township if these two simple ideas were addressed. Let’s adopt direct property tax relief. And is our legislators can’t do it, then give us – the residents – the courtesy of having a constitutional convention to address the problem ourselves.”

Puliti received a round of applause from the 100 or so people that filled the room. After the clapping has subsided, Sweeney did not specifically address any of Puliti’s comments, saying only, “Well, you made your statement. I understand. I’m more than willing to take questions.”

Other questions on a variety of topics followed for Sweeney and Senate Majority Leader Loretta Weinberg (D-Teaneck) from other residents of Lawrence, West Windsor, Hamilton and Ewing townships. Among those who spoke was Ewing Township Mayor Bert Steinmann who grilled the legislators about the property taxes that his town and other municipalities lose because they are home to state properties that are tax exempt.

See also:

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