JUDGES FOR HIGHER TAXES IN NEW JERSEY

The Wall Street Journal

  • JUNE 10, 2011

The New Jersey Supreme Court passes an appropriations bill.

  • Who needs an excuse to raise taxes when a state Supreme Court will tip the scales? That’s the story in New Jersey, where the justices recently inserted themselves into state fiscal policy, much to taxpayer dismay.

By a 3-2 vote, the state high court ordered the state to spend an additional $500 million for 31 schools in some of the state’s worst districts. The verdict forces Governor Chris Christie to rework his already difficult budget plans in order to accede to the court’s mandate.

Mr. Christie wasn’t thrilled. “You don’t elect the Supreme Court; you don’t expect them to be making law,” he said. “But today, they made law. Because today, they sent an appropriations bill for $500 million that was not passed by the legislature, that was not signed by the Governor. Go to the Constitution and tell me, how the hell did they get away with that?”

The decision plays into a weird universe of school funding that has existed under the state’s so-called Abbott v. Burke cases. Beginning three decades ago, the line of cases was intended to ensure that kids in bad school districts got extra resources to put them on par with wealthier districts. The decision planted the state Supreme Court in the middle of most school funding issues, at huge cost to taxpayers and faith in democratic rule.

Abbott funding has cost the state some $1 billion each year to create parity between Abbott districts and others. State spending on Abbott districts has nearly doubled as a percentage of the state budget, to 15.5% last year from 8.9% in 1985.

The money hasn’t improved the schools in Newark and elsewhere, but the rulings have helped to drive state taxes ever higher. The latest ruling has given new life to the so-called millionaire’s tax, which would add a new tax rate of 10.75% (from 8.97%) on some 15,000 state taxpayers. Mr. Christie vetoed the tax increase last year and promises to do so again, but Democrats are talking override.

Proponents say the tax would raise $500 million, and what do you know, that’s exactly the amount required for the schools. During oral argument, state Supreme Court Justice Barry Albin specifically mentioned the millionaire’s tax and queried whether the state could use it to help with school funding. Who elected him?

Mr. Christie has said he’ll abide by the court’s direction, though none of this would have happened if Democrats hadn’t obstructed his judicial nominee. Democrats have refused to hold hearings for Anne Patterson in retribution for Mr. Christie’s decision not to reappoint Justice John Wallace. Chief Justice Stuart Rabner appointed state appellate judge Edwin Stern to serve in the interim, and his vote was the decider in the recent case. There’s a reason that the Founders referred to the judiciary as the most dangerous branch of government.

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