Gov. Christie’s Proposals Resonate With Many Hobokenites

Given that Hoboken has in recent years become the poster child for municipalities handcuffed by exorbitant property taxes, the Mile Square would seem like the obvious venue for Governor Chris Christie to kick off his "Mayor's Toolkit" Town Hall Meeting tour.

Then again, Hoboken voters preferred Jon Corzine, Christie's predecessor and Hoboken resident, almost two-to-one in last November's election. Never mind her political affiliations, Mayor Dawn Zimmer, a self-described lifelong Democrat, all but gave Christie a key to the city while becoming the first elected official to publicly endorse the governor's plan to cap spending and reign in out-of-control property taxes at yesterday morning's Town Hall meeting. Wait—is Hoboken, known for being a Democratic stronghold, suffering an identity crisis to go along with its property tax crisis?

Based on the vigorous rounds of applause Christie's proposals were met with yesterday, it might appear so. Or, perhaps, residents are so desperate for tax relief that they'll gladly embrace some old-fashioned, conservative government downsizing.

When Christie and Zimmer—who accidentally adressed the Governor by the wrong name in her opening words, saying "Corzine"—made their big entrance, they were greeted with a standing ovation from the crowd of just over 100 attendees. While making his remarks, Christie was interrupted by applause several times, particularly when he called for pension and health benefits reform for teachers and for new mandates arbitrators would have to follow when awarding contracts.

Christie said that asking teachers to pay 1.5 percent of their salaries toward health benefits for them and their families, though a change, would still be considered a great deal by private sector standards. And he explained that under his plan arbitrators would have to award contracts keeping in mind the proposed yearly 2.5 percent property tax increase cap.

Even after Christie left the building, many people were still buzzing about how the "Toolkit" has the potential to help Hoboken become more fiscally responsible, especially with the police and firefighters unions seeking arbitration.

Councilman-at-large Ravi Bhalla echoed Zimmer's remarks about Hoboken's property tax problem being a non-partisan issue. "If there's one issue where Democrats and Republicans can unite, it's on reigning in property taxes on the local level," Bhalla said. "That's why, while I disagree with Gov. Christie on a number of things, this is one area where he's leading the state in the right direction."

Bhalla said that it's unlikely the city would reach an agreement with the unions before Christie's 2.5% cap is voted on by the state legislature. If Bhalla is right, and the state adopts Christie's proposals before agreements are reached with the unions, that would ensure the city would see a minimal increase, if any, on new contracts for police and firefighters.

Director of Public Safety Angel Alicea declined to comment. 

"I think the Governor's ideas are interesting," said interim schools Superintendent Peter Carter. Carter praised Christie for giving New Jersey residents the opportunity to essentially vote on municipal and state budget matters, but declined to comment on Christie's plan to require teachers to start subsidizing their own health benefits.

Board of Education member Carmelo Garcia struck a cautiously optimistic tone in his reaction to Christie's proposals, but acknowledged that some changes are needed.

"As a school board member, I think the toolkit empowers municipalities to attempt to lower the lax levy or flat-line the tax levy," said Garcia. "I think most teachers realize that the world has changed. It doesn't seem like [the proposal for teachers to pay 1.5 percent of their salaries to health benefits] is asking for too much."

When asked if he thought Christie's proposals would negatively impact students, Garcia responded, "I don't think it's going to affect the quality of education being taught by teachers."

Carrie Phillips, 41, a Hoboken resident for almost 20 years said she's an "ardent supporter" of Christie, one of the few in Hoboken until—evidently—today. Phillips, whose across-the-street neighbor is disgraced former Mayor Peter Cammarano, laughed about how she displayed a Christie campaign poster in her window and that Cammarano had to look at the banner for more than a year.

But she doesn't consider Hoboken's steep property taxes a laughing matter.

Council President Peter Cunningham also mentioned the new arbitration rules—in which arbitrators would have to keep the 2.5 percent cap in mind—as one of the most important things about the toolkit. 

"I don't believe anything has been done recently with the unions," said Cunningham. Zimmer said she couldn't comment on the labor union negotiations. 

Cunningham also said that he liked the proposed changes in civil service (the governor wants municipalities to be able to opt out) and the pension system. 

"I think they're great and a long time coming," Cunningham said about the proposed changes. Cunningham said he voted for Christie in November. 

Phillips said she supports Christie's plan because, as an owner of multiple properties and as a landlord, taxes have been especially painful during tough economic times. Phillips said she hasn't passed the enormous tax increases on to her tenants for fear of losing them.

"I can't pass the tax increases along to my tenants," Phillips said. "I've chosen not to and my units are all rent-controlled. Property tax growth has been exponential. I think the 2.5 percent cap is a good start," she continued. "I think he's empowering the local officials in the communities and I think that's what's necessary."

In fact, barricades were set up across the street as an area for protestors to gather, but only a handul turned out and stood with signs that criticized Christie's cuts to education and services in his proposed budget. It appeared that fewer protestors than expected actually showed up.  The protestors were composed of some members of the public who were not granted access because they did not RSVP to the event, or were not invited. 

The Zimmer administration reached out to community leaders, who were asked to select some people to attend the event. Bhalla—in his capacity as Democratic Committee person—invited some people, as did Executive Director of the Housing Authority Carmelo Garcia, the Hoboken Republicans and others. The list originally consisted of 120 names, but not everybody showed up.  

Not everyone inside glowed with optimism, though. Second Ward councilwoman Beth Mason, who declined to sit on stage with City Council colleagues Peter Cunningham, Carol Marsh and Bhalla, said Christie's proposals are just a way of taxing middle class commuters.

"Ultimately, this is a tax on the commuters," said Mason. "He even said he raised the commuter price [New Jersey Transit fares]. That affects everybody in Hoboken that uses public transportation."

Mason also took issue with a part of Christie's larger budget plan to increase taxes on New Jersey hospitals. Mason said Christie's proposed tax on hospitals has particularly dire implications for the Mile Square because of Hoboken University Medical Center's fiscal problems.

Hobokenites from both political parties were present. John Forsman, who ran for Board of Education on the (Republican) Real Results slate said he was happy to see the governor in town. "As a Republican," he said, "you worry." He added that Republicans often skip Hudson County, because it's heavily democratic. 

During the question-and-answer portion of the Town Hall meeting, Hoboken resident Ines Garcia-Keim pressed the governor for an answer on why he has vowed to veto legislation to reinstate the so-called Millionaire Tax. Christie responded by saying that former Corzine allowed the tax to lapse as a political tactic during his campaign for reelection and that he will not reinstate it.

Afterwards, Garcia-Keim conceded that certain reforms are necessary, but that the state could also realize a revenue windfall from the Millionaire Tax. "Everybody is focusing on the cuts, but very few people have put a spotlight on this huge chunk of potential revenue that we're letting go."

"But there are some things I agree with," Garcia-Keim added. "Increased contributions toward health benefits, increasing the retirement age. These are all common sense things that I think the governor and legislature can come to an agreement on."

Claire Moses added reporting.