Governor Chris Christie Takes Action to Support Princeton Consolidation Effort

Governor Proposes Legislation and Grants to Promote Sensible, Locally-Driven Municipal Consolidation


Trenton, NJ – Acting on a commitment to drive down the cost of government and enact real, long-term solutions to New Jersey's highest in the nation property taxes, Governor Chris Christie today backed an effort to consolidate Princeton Borough and Princeton Township, while also taking steps to further promote sensible, locally-driven municipal consolidation efforts.

Together with Princeton Township Mayor Chad Goerner and Princeton Borough Mayor Mildred T. Trotman, Governor Christie expressed his support for a ballot question going before the voters of each municipality to move forward with a consolidation of the two municipalities and announced new initiatives to support local consolidation efforts. 

"The residents of Princeton Township and Princeton Borough have an opportunity to streamline their local governments and achieve significant savings now and into the future," said Governor Christie. "My view has always been that sensible, locally-driven consolidation must be supported by state government, and that is exactly what we are doing by proposing common sense changes to how municipalities absorb the one-time costs of mergers and incentivizing voter-approved consolidations with grants to assist with those expenses. I believe these efforts to consolidate in Princeton can be an example for other municipalities seeking savings and efficiencies under the 2 percent property tax cap."

To facilitate the merger in Princeton and municipal consolidation efforts in the future, Governor Christie is proposing legislation to allow municipalities engaging in complete consolidation to spread one-time costs associated with consolidation over a five year period. Spreading these costs over a five year period will allow consolidating municipalities to rapidly begin experiencing the financial savings of those mergers by mitigating the one-time, upfront costs associated with consolidation. Current law provides for a category of certain municipal costs to be spread over a five year period. The proposed legislation would include one-time costs of municipal consolidation among those qualified expenses. 

In addition, Governor Christie announced that the Division of Local Government Services, within the Department of Community Affairs, will provide consolidating municipalities a grant to cover 20 percent of the cost of implementation, representing the entire first year expense of the five year period proposed under the legislation. By the second year, following voter approval of consolidation, savings from a merger would far exceed the remaining spread out nonrecurring integration costs.

The one time estimated cost of consolidation for Princeton Township and Princeton Borough as estimated by the joint municipal commission was $1.7 million, with the merger anticipated to yield at least $3.16 million in annual savings upon full implementation. The Division of Local Government Services will review proposed transition expenses and provide a grant to cover 20 percent of approved transition costs, representing the first-year amount under the new legislation, allowing residents in both municipalities to share in the identified savings as soon as possible and without any impact on property taxes in the interim period while those savings are being achieved. 

Chad Goerner, Mayor of Princeton Township said, "I welcome the Governor's support on what should be a common, bipartisan goal for our state. Consolidation offers an opportunity for our collective communities to streamline governance, improve accountability, generate tax savings, unify our resources and improve budget flexibility. While the transition costs are a one-time expense and we have identified significant savings from consolidation, the grant will help us achieve these savings faster to benefit all residents of our community. Princeton has an opportunity to become a model for the state on locally-driven municipal consolidation."

Midred T. Trotman, Mayor of Princeton Borough said, "While I have never before supported consolidation in the 49 years I have lived in Princeton, but believing as strongly as I do now that full consolidation is in the best interest of Princeton Borough residents, I am pleased that some financial relief to help offset the cost of transition is being made available to our taxpayers."

Governor Christie has been aggressive in tackling the foundation of New Jersey's property tax crisis – the skyrocketing cost of government. In addition to placing a 2 percent, hard cap on property tax growth, Governor Christie also secured passage of critical reforms to drive down the cost of government, including historic, bipartisan pension and health benefits reforms and a 2 percent cap on interest arbitration awards.


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