The report zeroes in Bridgeton, Passaic, Perth Amboy, and Trenton, where the poverty rates are double or triple the New Jersey average.
TRENTON -- Entrenched urban poverty, triggered by the loss of industrial and commercial businesses, and declining state and federal aid, could be reversed if cities are permitted to impose new fees and the state enacts laws that help low-income workers, a report released on Thursday says.
The report, by the Anti-Poverty Network of New Jersey and the John S. Watson Institute for Public Policy at Thomas Edison State University, recommends studying Pennsylvania cities that tax people "who use the resources of the city, rather than just the residents."
City residents can be helped directly by expanding the Earned Income Tax Credit and supporting a $15 minimum wage - efforts that are getting a lot of attention - and a tax credit for child care, according to the report.
The report zeroes in on Bridgeton, Passaic, Perth Amboy and Trenton, where the poverty rates are double or triple the New Jersey average.
"Concentrated poverty" has taken hold because of a gradual decline in state and federal aid and the diminishing tax ratables due to the decline or relocation of industrial and commercial properties, the report said. These conditions led to cuts in health, social welfare, housing and economic development programs in the municipal budget to compensate for the loss of tax revenue.
Housing costs absorb about half of what Bridgeton, Passaic, Perth Amboy and Trenton residents typically earn, "leaving little else for other basic needs," according to the report.
Property taxes took a 17 percent bite out of the median property owner's paycheck in Passaic, the highest in New Jersey. Perth Amboy property owners paid 9 percent of their income to property taxes, the 12th highest out of 565 municipalities. Trenton ranked 30th at 7 percent; Bridgeton 53rd at 5 percent, the report said.
"This burden, combined with an inability to fund needed services, reinforces existing conditions of low opportunity and limited revenue," according to the report.
Record number of N.J. residents living in poverty
"These cities offer us important insight into the perpetuating cycle of concentrated poverty, depleted resources, and the inability to invest in needed services," said Serena Rice, executive director of the Anti-Poverty Network of New Jersey.
"There is a lot of discussion in Trenton right now about 'tax fairness,' " Rice said, referring to the ongoing discussions in Trenton about repealing the estate tax to offset the potential gas tax hike to fund road construction projects. "This important research reveals the structural unfairness of burdening our cities with the overwhelming task of addressing concentrated poverty, while their resources to do so keep shrinking."
The report was released at a press conference at the college Thursday morning, attended by the mayors of the four highlighted cities who said they hoped a public discussion will follow.
"As urban mayors, our administrations are not only commissioned to (provide) economic development, constituent services and providing everyday vital services, but also addressing socio-economic challenges that other communities do not face directly," said Wilda Diaz, Mayor of the City of Perth Amboy. "This report lays out the spectrum of fiscal statuses within one of the wealthiest states in America."
Susan K. Livio may be reached at slivio@njadvancemedia.com. Follow her on Twitter @SusanKLivio. Find NJ.com Politics on Facebook.