Comments on: Saving the city by giving up the schools http://livingonthenet.com/wordpress/saving-the-city-by-giving-up-the-schools What would an Economist recommend for Trenton? Tue, 18 May 2010 13:53:03 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: admin http://livingonthenet.com/wordpress/saving-the-city-by-giving-up-the-schools/comment-page-1#comment-624 admin Sun, 08 Mar 2009 17:00:17 +0000 http://livingonthenet.com/wordpress/?p=36#comment-624 I'll admit to not actually know the legal process for Trenton bailing on its school obligation. This would be a great homework assignment for someone though. It would be good to know the legal processes (with reference to statutes) that would govern the process Also, would be good to start informing the public on the legal processes for state takeover of the city and for bankruptcy. The more informed we are about these doomsday scenarios the better we can judge the options in front of us. Unfortunately, I have neither the aptitude or time to do this homework on behalf of the citizens of Trenton. I’ll admit to not actually know the legal process for Trenton bailing on its school obligation.

This would be a great homework assignment for someone though.

It would be good to know the legal processes (with reference to statutes) that would govern the process

Also, would be good to start informing the public on the legal processes for state takeover of the city and for bankruptcy.

The more informed we are about these doomsday scenarios the better we can judge the options in front of us.

Unfortunately, I have neither the aptitude or time to do this homework on behalf of the citizens of Trenton.

]]> By: Greg F. http://livingonthenet.com/wordpress/saving-the-city-by-giving-up-the-schools/comment-page-1#comment-623 Greg F. Sun, 08 Mar 2009 16:30:34 +0000 http://livingonthenet.com/wordpress/?p=36#comment-623 Trenton cannot refuse to pay its school levy. The state would come in, force us to pay the taxes, and then maybe take over the district. Trenton cannot refuse to pay its school levy. The state would come in, force us to pay the taxes, and then maybe take over the district.

]]> By: Algernon Ward http://livingonthenet.com/wordpress/saving-the-city-by-giving-up-the-schools/comment-page-1#comment-622 Algernon Ward Sun, 08 Mar 2009 16:03:08 +0000 http://livingonthenet.com/wordpress/?p=36#comment-622 My Dear Fellow Dan, Let me surprise you by agreeing that the profits from the latest water rate hike should be leveraged in a manner that would fill the current budget gap. That would buy us the time to work on a sustainable way to address the 2010-11 budgets. The problems with the COT budget are structural, and therefore recurrent, which renders the selling off of a income producing operation in a one-shot deal, a bad idea. We will face the same problems in the coming years with fewer resources and an even greater dependence property taxes to support the city's budget. Not to mention the fact that the sale will subject our neighbors in the townships to the tender mercies of a for profit company with a monopoly on their water system. Now I know this is where we have a philosophical difference. You have often expressed a steadfast belief in the free market system, whereas I on the other hand, abhor the creation of monopolies. One look at what happened to our cable bills over the years or your electric bill which are also monopolies, I think you can understand my reasoning. You are quite right to observe that we are now out of time. Drastic measures are called for. But I don't think that seeking a state take-over of the schools is the answer. Allow me to offer an alternative. It is time to face the fact that we can no longer afford to operate separate city departments in each of Mercer's municipalities. Imagine what it would mean if we could remove the street department, police and fire administration, and yes, operation of the school district from the city budget. As you know, these are the largest portions of our property tax bills. The hard reality of these economic times forces us to consider the consolidation of these services on a county-wide basis as a rational means to address the budget challenges that we all face. Yes our county taxes will go up, but our property taxes will come down by much more, resulting in a net tax cut leaving more money in the pockets of all taxpayers. I note with interest that Hightstown and East Windsor are already engaged in this process. Assemblyman Gusciora has pending legislation that approaches this issue. We simply can no longer afford the parochial indulgence of "home rule" of all duplicative municipal operations. Consider the cost of the "4 on-4 off" feature of our police contract that has cost as much as $11 million in one year for police over-time. If that money alone was available to us now, would we be facing this gaping hole in our budget? Finally I don't consider state aid as a drug. The application of payment-in-leiu-of-taxes (PILOT) monies that we get from the state has historically been inadequate and arbitrarily determined. We need a realistic and consistent formula for the payment of these funds that allow for the planning of the city budget to proceed in a stable and predictable way instead of waiting breathlessly each year to see what they "give" us based on the extant political climate. Your observation that Trenton residents only pay 14% of the cost of our schools today does not take into account that for 47 years state education monies were applied in a discriminatory fashion to advantage suburban school systems. That fact is the basis for the Abbott v. Burke NJ Supreme court decision to compensate the "Abbott" school districts like Trenton for generations of discriminatory allocation of state education funding. Funny how no one complained when for 47 years a disproportionate amount of our tax monies were going to "gold plate" suburban schools while ours were allowed to deteriorate. In the past few years the application of Abbott monies resulted in that distorted looking 14% figure. I believe that will change when the school construction portion of the Abbott monies is phased-out after the schools are built. I always enjoy engaging with you Dan because it proves that Conservative Republicans and Liberal Democrats can seek constructive solutions together without sharp weapons or gunfire. I am your, LT '02 Fellow - Algie My Dear Fellow Dan,
Let me surprise you by agreeing that the profits from the latest water rate hike should be leveraged in a manner that would fill the current budget gap. That would buy us the time to work on a sustainable way to address the 2010-11 budgets. The problems with the COT budget are structural, and therefore recurrent, which renders the selling off of a income producing operation in a one-shot deal, a bad idea. We will face the same problems in the coming years with fewer resources and an even greater dependence property taxes to support the city’s budget.
Not to mention the fact that the sale will subject our neighbors in the townships to the tender mercies of a for profit company with a monopoly on their water system. Now I know this is where we have a philosophical difference. You have often expressed a steadfast belief in the free market system, whereas I on the other hand, abhor the creation of monopolies. One look at what happened to our cable bills over the years or your electric bill which are also monopolies, I think you can understand my reasoning.
You are quite right to observe that we are now out of time. Drastic measures are called for. But I don’t think that seeking a state take-over of the schools is the answer. Allow me to offer an alternative. It is time to face the fact that we can no longer afford to operate separate city departments in each of Mercer’s municipalities. Imagine what it would mean if we could remove the street department, police and fire administration, and yes, operation of the school district from the city budget. As you know, these are the largest portions of our property tax bills. The hard reality of these economic times forces us to consider the consolidation of these services on a county-wide basis as a rational means to address the budget challenges that we all face. Yes our county taxes will go up, but our property taxes will come down by much more, resulting in a net tax cut leaving more money in the pockets of all taxpayers. I note with interest that Hightstown and East Windsor are already engaged in this process. Assemblyman Gusciora has pending legislation that approaches this issue. We simply can no longer afford the parochial indulgence of “home rule” of all duplicative municipal operations. Consider the cost of the “4 on-4 off” feature of our police contract that has cost as much as $11 million in one year for police over-time. If that money alone was available to us now, would we be facing this gaping hole in our budget?
Finally I don’t consider state aid as a drug. The application of payment-in-leiu-of-taxes (PILOT) monies that we get from the state has historically been inadequate and arbitrarily determined. We need a realistic and consistent formula for the payment of these funds that allow for the planning of the city budget to proceed in a stable and predictable way instead of waiting breathlessly each year to see what they “give” us based on the extant political climate.
Your observation that Trenton residents only pay 14% of the cost of our schools today does not take into account that for 47 years state education monies were applied in a discriminatory fashion to advantage suburban school systems. That fact is the basis for the Abbott v. Burke NJ Supreme court decision to compensate the “Abbott” school districts like Trenton for generations of discriminatory allocation of state education funding. Funny how no one complained when for 47 years a disproportionate amount of our tax monies were going to “gold plate” suburban schools while ours were allowed to deteriorate. In the past few years the application of Abbott monies resulted in that distorted looking 14% figure. I believe that will change when the school construction portion of the Abbott monies is phased-out after the schools are built.
I always enjoy engaging with you Dan because it proves that Conservative Republicans and Liberal Democrats can seek constructive solutions together without sharp weapons or gunfire. I am your,
LT ‘02 Fellow – Algie

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