file photo Boyd Loving
New Jersey towns scramble to limit police, firefighter pay raises now that cap has expired
APRIL 5, 2014 LAST UPDATED: SATURDAY, APRIL 5, 2014, 12:03 AM
BY MICHAEL PHILLIS
STATE HO– USE BUREAU
THE RECORD
In the four days before a statewide cap on police and firefighter raises expired, 71 applications were filed by local governments to take advantage of that limit.
That’s more than double the number of towns and counties that did so in all of last year, according to state records.
Local governments were seeking binding arbitration with police and firefighter unions while a 2 percent cap on raises was still in place. That cap, a measure that supporters say has kept property tax increases in check, expired Tuesday.
“We wanted to take advantage of a law as it was originally adopted,” said Richard Kunze, the borough administrator in Oakland.
Uncertainty about a bill in the Legislature to extend the cap caused Oakland to file for arbitration on Monday after failing to reach a contract with the town’s police union.
“Very clearly, it is all in response to the legislation,” Kunze said.
The New Jersey State League of Municipalities said the late rush by towns and counties to take advantage of the cap shows how much it is needed. The Senate has passed an extension, but the measure has stalled in the Assembly.
The cap on raises was one of the measures passed after Governor Christie signed a law that limits annual increases in property tax levies to 2 percent.
New Jersey’s property taxes are among the highest in the nation. In 2013, for example, Bergen County’s average bill was $10,645. Passaic County’s was $9,368.
State law restricts police and firefighters from striking during contract disputes. When governments and their unions can’t agree on contracts, a neutral third party makes a binding decision about the terms of a new deal.
The arbitration cap limits raises for police and fire officials, which often make up a substantial portion of municipal budgets. These restrictions, advocates of a cap say, prevent government services from being cut if high raises are given.
Before the cap was put in place, some unions were receiving raises around 4.5 percent. That has dropped to about 1.9 percent since the law took effect, according to a report by a task force that studied the law.
In a compromise with Governor Christie, the Democrats who control the Legislature agreed to extend the cap on raises but limited the extension to three years.
The Democrats’ version, which allowed for some exceptions to the 2 percent cap and limited the bill’s overall reach, passed both houses but was conditionally vetoed by Christie. The Senate then passed a bill backed by Christie, which would end the cap by 2018 but eliminate some of the union-friendly provisions in the Democrats’ plan. The Assembly has yet to act on Christie’s version.
– See more at: https://www.northjersey.com/news/new-jersey-towns-scramble-to-limit-police-firefighter-pay-raises-now-that-cap-has-expired-1.842277#sthash.l9MqElsF.dpuf
