Local officials say there is mounting tension between newcomers and longtime residents over who should bear the cost of the new services. Already paying the highest property taxes in the nation, New Jersey homeowners have demonstrated their reluctance to pay even higher taxes to build and expand schools. Almost half of the 111 borrowing plans for school construction have been defeated by voters in the last 18 months. And school officials say their ambitious building program might not be sufficient. Two thousand new homes are expected to be built over the next five years, which school officials estimate would drive up school enrollment to 5,000 students.
Builders roundly criticize impact fees.
They argue that the fees drive up the cost of new homes and unfairly penalize new-home buyers, subjecting them to double taxation. Patrick O'Keefe, chief executive of the New Jersey Builders Association, pointed out that constructing new schools or renovating old ones has historically been financed through voter-approved school borrowing, and that the debt service on those bonds is paid for primarily through property taxes. They are casting it as if future home buyers should pay differently than current residents. State Sen. William Schluter, R-Flemington, has introduced a bill that would authorize municipalities to levy impact fees. He said he hoped that the bill, which has bipartisan support, would pass this year and gain support from Whitman, because she made managing growth the theme of her second inaugural address.