Property Taxes Take Center Stage During New Jersey Gubernatorial Debate

WAYNE, N.J. (CBS/AP) — New Jersey's property taxes — the country's highest — took center stage in the second and final debate gubernatorial debate on Wednesday night.

Democrat Phil Murphy and Republican Lt. Gov. Kim Guadagno clashed in a debate at William Paterson University over what polls show is a big issue in the Nov. 7 contest. CBS3 and CBSPhilly.com aired the debate.

A memorable exchange unfolded after Guadagno asked Murphy how he planned to pay for a number of promises he's made, including fully funding the state pension, increasing school aid and providing tuition-free community college.

Murphy began by saying that Guadagno wasn't using true figures in her cost estimates. Then a member of the audience shouted "Answer the question."

Murphy responded he couldn't hear what was said, so Guadagno repeated it for him. "Answer the question, was the shout," she said.

The moderators then cut off the conversation because of the interruptions, but Murphy responded with his own question.

"You've taken care of hedge funds, big corporations and the wealthiest among us," he said. "You've been at Chris Christie's side for 2,829 days . I'd like to know where have you been."

Guadagno said she's disagreed with the unpopular Republican governor in private, and attacked Murphy for how costly his promises are. He's estimated they'd require $1.3 billion in new revenues.

"All of these promises, all of these fantasies, all of these entitlements, it's going to come from your pocket," Guadagno said.

Murphy offered a more detailed opinion on his plan to address property taxes — the country's highest — which averaged more than $8,500 in 2016. He said his promise to fully fund a state education formula, estimated to cost about $1 billion per year, would help lower rates. Property taxes are largely driven by local education costs.

Guadagno's plan would cap the school portion of property taxes at 5 percent of income, up to $3,000. She said the average resident would see $800 in savings and said she would pay for her plan by an audit of state finances.

When asked about bringing Amazon to New Jersey, Guadagno backs a plan proposed by Christie to use billions of dollars in tax incentives to attract the business, which is looking for a location to put a second headquarters.

Murphy said he wants to attract Amazon, which says it will bring 50,000 jobs to the new site, but "on the right terms." He didn't explicitly reject or back Christie's plan.

When the topic moved to the corruption trial of Sen. Bob Menendez, D-N.J., Murphy declined to answer whether the New Jersey senator should resign if he's convicted in the federal corruption trial that is underway. Menendez has denied the charges and pleaded not guilty. "I'm not gonna speculate," he said.

Guadagno said "absolutely" he should resign and that she wouldn't appoint Christie if the senator's seat became open while she was governor.

In a lightning round of questions, both candidates were asked their favorite fruit and vegetable. Murphy answered grapefruit and broccoli. Guadagno said Jersey tomatoes and cranberries.

Murphy and Guadagno met last week in Newark, and their picks for lieutenant governor met on Monday in Montclair.

Murphy, a former Obama administration ambassador to Germany, leads Guadagno in polling and has $5 million to Guadagno's $1 million in reserves.

The debate comes just a day before former President Barack Obama comes to New Jersey to campaign for Murphy. Obama is the latest in a string of high-profile backers, including former vice presidents Joe Biden and Al Gore, who have stumped for the never-elected Murphy.

Handfuls of supporters for each candidate gathered outside the event. Guadagno backers hoisted a sign that said "Murphy's Law Any Tax That Can Be Raised Will Be Raised."

Murphy's backers brought a figure dressed as President Donald Trump wearing the white garb of Ku Klux Klansman.

Analilia Mejia, director of the liberal New Jersey Working Families organization, said the Trump figure has been part of a summer-long protest outside Trump's golf course in Bedminster. She said her group brought the figure to the debate to protest a new ad by Guadagno that says Murphy would support illegal immigrants who commit violent crimes. "We think she's taking a page out of Trump's playbook," Mejia said.

Christie's dreadful approval ratings have become a campaign challenge for Guadagno, despite her efforts to distance herself from him.

"I'm running for governor, based on my own values, based on my record, and based on my principles," Guadagno previously said.

Murphy spent $20 million of his own money and defeated five Democratic opponents during the primary.

"New Jersey, here's my simple promise to all 9 million of you, I've got your back," Murphy previously said.

Murphy is also a former executive at Goldman Sachs. One key focus of his campaign has been his anti-Christie stance.

"Four more years of Christie-style politics won't change New Jersey's unfair, unsuccessful, unsustainable course," he said.

However, Murphy's success and wealth have become a point of attack during the campaign as many Republicans have compared him to former Gov. Jon Corzine, also a Goldman Sachs executive.

Election Day is Nov. 7.

Christie cannot seek a third term because of term limits.

Five third-party and independent candidates also are running for governor.

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