SAYREVILLE – A prominent Democrat warned that Gov. Chris Christie’s 2 percent cap on local property tax increases could wind up hurting New Jersey taxpayers.
Assemblyman John S. Wisniewski’s concern was prompted by news that Westfield, with a median household income that is more than twice the national average, had its debt rating reduced by Moody’s Investors Service this week. Moody’s cited concerns about the township’s ability to balance its budgets.
“Moody’s downgrading of Westfield’s bond rating should sound a warning klaxon for every other town in the state,” Wisniewski (D-Middlesex) said.
“Any projected property tax savings towns were expecting under the 2 percent cap will be offset by higher interest rates and borrowing costs from reduced bond ratings,” he said. “Moody’s actions – and their categorizing of the 2 percent cap as ‘credit negative’ for towns – only continue to reinforce the fact that the only thing Gov. Christie’s cap is good for is soundbytes.”
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