Christie conditionally vetoes property-tax-cap bill

TRENTON - Gov. Christie issued a conditional veto of a property-tax-cap bill Tuesday, paving the way for the Legislature to approve a compromise worked out between the governor and the Senate president.

Meanwhile, Assembly Speaker Sheila Oliver said in an interview that while she was "blindsided" by the announcement Saturday of the deal between Christie and Stephen Sweeney (D., Gloucester), she intended to post the legislation for a floor vote "as soon as possible," within weeks.

"I would not not put a bill up for a vote," Oliver said. "I think the objective here is that citizens want some immediate assurance that their property taxes - the growth of their property taxes - will be restrained."

Oliver (D., Essex) said that she expressed her concerns about the compromise legislation to the governor by phone Tuesday, but that she expected those issues could be addressed after the bill was voted on.

Christie originally proposed a 2.5 percent annual cap on property taxes, to be adopted through a constitutional amendment, with an exception only for debt service. Voters in any town could override the cap with a 60 percent majority.

Sweeney countered with a proposal for a statutory 2.9 percent cap with several exceptions, including debt service, health-care costs, pensions and reductions in state aid. His proposal would not have allowed voters to override the cap. The bill was approved by both houses of the Legislature and sent to the governor, prompting the conditional veto.

The existing cap is at 4 percent, with 14 exceptions that Christie has said rendered it virtually meaningless.

Under the compromise announced Saturday, which must still receive the approval of both houses of the Legislature, a statutory cap would be set at 2 percent. Exceptions would be allowed for capital expenditures including debt service; pension benefits; health-care benefits up to the average cost increase in the state Health Benefits Plan; and expenses incurred because of an emergency, to be defined by regulations. Voters could override the cap with a simple majority.