PHILADELPHIA - Growing disconnects between state and local governments across the U.S. are especially impacting municipalities in the neighboring Northeast states of New Jersey and Pennsylvania.
Joseph Tempesta Jr., president of the New Jersey State League of Municipalities, stressed during The Bond Buyer's Mid-Atlantic Municipal Market conference Tuesday that state leaders have failed over the years in creating new revenue streams that would allow localities to tackle fiscal challenges like rising pension costs. Tempesta, who is also mayor of West Caldwell, N.J., pointed to a proposal by former Gov. Jon Corzine to monetize some of New Jersey's highways with advertising signs as an example of a wasted opportunity not seized by state lawmakers.
"That is three quarter of a billion dollars New Jersey leaves on the table," said Tempesta of Corzine's plan that was opposed by many state lawmakers and stalled a decade ago.
Michael Drulis, executive director for the Government Finance Officers Association of New Jersey, said the impact at the local level of failed actions in the state capital has been front and center this year when the state's Transportation Trust Fund expired over the summer. Prior to the state legislature forming an agreement with Gov. Chris Christie to renew the fund in early October, most New Jersey road and transit projects were forced to shut down.
"People have certainly seen the local effect on policy decisions at the state level," said Drulis of the dispute over transportation funding in Trenton. "It becomes tangible."
Richard Schuettler, executive director of the Pennsylvania Municipal League, said a state program for distressed local governments— commonly known as Act 47 — has been "generally effective", but 27 localities have never found a way out of the designation. He said many state legislators have taken partisan stances based on party lines that often times do not translate to the interests of municipalities.
"It's just a much different political atmosphere at the state level than the local level," he said.
