Somewhat dated article - but perhaps still relevant:
http://www.usatoday.com/money/perfi/housing/2006-08-10-nj-property-taxes_x.htm"Many also pin the blame on the way many of New Jersey's 566 cities and towns insist on having their own schools, police departments, public works crews and the like, instead of consolidating services with those of other communities to reduce administrative costs.
Somerset County, for example, has 21 municipalities. Densely populated Bergen County, just across the Hudson River from New York City, has a staggering 70.
Some lawmakers are looking into merging school systems and municipalities but are likely to run into resistance from local officeholders if they try to force the issue."
Not certain why this issue doesn't come up more. Suburban proliferation is a huge factor behind the growth of overall government spending (federal + state + county + municipal).