The "Highlands Tax": Why Ringwood Taxpayers Can No Longer Subsidize New Jersey's Water.

By: Jaime Matteo-Landis, Mayor of Ringwood 

For years, the Borough of Ringwood has operated under a philosophy of strict fiscal restraint. As your Mayor—and as a fellow taxpayer—I have taken pride in our demonstrated ability to "belt-tighten," coordinating with the Board of Education and consolidating staff roles to keep our tax impact manageable. But we have reached a breaking point where fiscal discipline can no longer overcome state-mandated reality. 

This year, I am introducing a budget that includes a 5.6% tax increase. It is a difficult increase to deliver, and even more difficult for our families to absorb. However, leadership requires a transparent and straightforward approach, and the residents of Ringwood deserve to know exactly why this is happening. 

The truth is that Ringwood is being handcuffed by the very State we serve. 

The Financial Burden of Stewardship 

Ringwood is unique. We are 100% within the Highlands Preservation Area. We take immense pride in being the stewards of New Jersey’s water supply, but that stewardship comes with a heavy, mandated financial burden. 

Because we are fully preserved, we cannot "build our way out" of budget gaps. We do not have the luxury of developing structurally or adding new commercial ratables to offset our costs. While other towns utilize development strategies to produce solvency, Ringwood is legally forbidden from doing so. We are providing a massive environmental service to the entire State of New Jersey, yet the State continues to leave the bill for that service squarely on our shoulders. 

Look no further than the recent Highland’s Impact Aid Now Movement, which began in Jefferson, to see the true impact of the Highland’s Act. As Jeff Tittel, the former New Jersey head of the Sierra Club and the architect of the Highlands Act, recently wrote, "NJ Broke its Promise to the Highlands." The State claimed there would be support in exchange for preservation; instead, they have left us with the responsibility and none of the revenue. 

The Comparison: A Tale of Three Towns 

Ringwood does not stand alone in this struggle, but we are being forced to stand without the tools others have. Our neighbors in West Milford and Jefferson share our burden of preserving the State’s watershed, but they at least receive state-funded 'moratorium aid' to offset their losses. Even with that aid, the reality is devastating: West Milford has announced its second school closing, and Jefferson, having already closed a school, now faces the loss of all sports and extracurricular activities. 

In Ringwood, we fought for and successfully passed moratorium aid into law, yet the State has refused to fund it. Despite direct appeals to Governor Sherrill and Acting State Treasurer Binder, the promised relief remains unfulfilled. 

Why Ringwood is Different 

The fact that Ringwood hasn’t faced the same level of departmental collapse as neighboring Highlands communities is no accident. It is a testament to the resilience of our residents and a Borough leadership that has managed to do more with less for longer than anyone thought possible. Due to the foresight of the elected body and the administration, we’ve been able to bridge the gap, but we cannot rely on miracles indefinitely, while the State ignores its financial obligations to us. 

The "Trenton Tax" 

Beyond our environmental mandates, we are also grappling with what I call the "Trenton Tax." Every year, the State imposes more unfunded mandates—while municipal aid from Trenton remains stagnant, or even worse, is reduced.  Programs that were promised to support municipalities, such as the Energy Tax Receipts Property Tax Relief Aid, has not been funded year after year as required.

This budget isn't about "new" spending; it is about meeting the obligations the State has forced onto our ledger without providing a cent of relief to cover them. 

Doing More with Less 

Historically, Ringwood has restructured its very foundation to survive. We have consolidated positions, often requiring our dedicated staff to take on dual or triple roles. Our Borough Manager and leadership team do the work that, in other towns, would be spread across entire departments. We have worked harder and smarter to balance and sustain. But we can no longer ask our staff to bear such burdens, nor can we allow our infrastructure to erode. By introducing this budget, we are making a deliberate choice to break the cycle of short-term fixes and confront the broader economic realities facing New Jersey head-on.

A Call for Equity 

We are doing our part. We are pushing forward with economic development initiatives through our Ringwood Downtown plan and our new Economic Development Director to identify every available creative revenue stream. 

However, it is time for the State of New Jersey to recognize that preservation cannot be a one-way street. Ringwood is protecting the state's water; it is time for the state to protect Ringwood’s taxpayers. We are doing the hard work now to ensure our Borough remains solvent, safe, and beautiful for the next generation. We owe it to our future to face these facts today. 

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