Kean Tranparency Bill Advances

The New Jersey State Senate Community Urban Affairs Committee unanimously passed a bill sponsored by Senate Republican Leader Tom Kean (R-Union) that would bring greater transparency and accountability to government spending. Senate Bill 1465 would require all towns to report their tax abatements to the Department of Community Affairs (DCA). The information would then be used to determine a town's eligibility when it applies for “Special Municipal Aid.”
“With a growing budget deficit, New Jersey needs common-sense strategies for getting more value out of every dollar spent and insuring accountability from Trenton,” Kean said. “There have been allegations that some towns give out tax exemptions and abatements to politically connected individuals. If a town gives out an unwarranted exemption that reduces the amount of taxes it collects, it should not be granted state aid to make up for the lost revenue.” The Special Municipal Aid Act, also referred to as the “Distressed Cities Program,” was enacted in 1987 to provide temporary state assistance to municipalities until they can get back on their feet. Instead of providing temporary aid, the program has provided some towns with aid for five, six or even more years. The program has grown from $41 million in fiscal year 2005 to $132.6 million. The aid has been awarded with little or no requirements for a plan to return to fiscal balance, and with no real application process, so the aid goes to only a handful of towns. “New Jersey citizens know that when the people can easily learn how their money is being spent, then government will be more accountable about how that money is used,” Kean continued. “This legislation will give State government an additional tool to ensure taxpayer dollars are spent effectively, efficiently and justly."