New Jersey is one of five of the states where government union membership rates exceed 50 percent.
How powerful are public employee unions in your state?
By Jason Hart / February 26, 2015 | Watchdog.org
More than half of the public employees in 13 states are union members, and government union membership rates exceed 25 percent in 27 states.
Labor unions work against employers — local, state and federal taxpayers, in the case of public employees. While slamming labor reforms as “anti-worker,” America’s four largest unions enrich themselves and their members at taxpayer expense.
The National Education Association, Service Employees International Union, American Federation of Teachers and American Federation of State, County and Municipal Employees have a combined total of more than 7.5 million members.
Over 3.3 million unionized public employees work in California, New York, Illinois, New Jersey and Pennsylvania, five of the states where government union membership rates exceed 50 percent.
The 800lb gorilla in the room is nepotism. Let me explain.
Government, and particularly local government, bears no resemblance to the private sector in many ways. We could go on about these differences but let’s just focus on how jobs are filled. Sure, there’s an element of nepotism in the private sector, but local government is almost all about political favors and basically who-you-know. Ever sent your resume in for a government job without any insider connections? You didn’t get so much as an interview, right?
Now the big problem with this kind of hiring practice is what do you do when that person screws up, or worse still, gets caught with their snout in the trough. In a lot of cases, things tend to get smoothed over and nothing gets done. In extreme cases (particularly when the issue becomes public knowledge), it becomes necessary to fire (and possibly prosecute) that person. This becomes really awkward being that the person is still well connected.
I’m not suggesting that this coin-theft guy was was one of these connected guys, but just pointing out the inherent problem of hiring people based upon the friends and family plan.
Reader says who has time to look? We’re too busy making money and driving our kids to soccer practice
All but a few old-timers and insiders know what really goes on inside the Village Hall. For most people, Ridgewood is a place you live while your kids go through school, after which you sell up and move out. It’s quite a transient community. An affluent town. Lovely houses. We wave at our neighbors and have cocktails and BBQs. We are a pretty sophisticated bunch, mostly wrapped up in the lives of our kids and the long, stressful hours we put in at some big corporation. We have this natural impression that all our fellow Ridgewoodians are the same. Sophisticated.
That nice looking Village Hall is not staffed and managed by people like you. Just because Ridgewood has that Norman Rockwell image, does not mean it’s run by Norman Rockwell types. These people know all too well that the typical Ridgewood resident is blasting through life full speed and living a very comfortable life, to pay attention to the nepotism, insider perks and the feasting at the trough of what these residents pay in the form of taxes, fees, and yes, parking meter coins.
Hey, who has time to look? We’re too busy making money and driving our kids to soccer practice.
Readers say Public Sector Pensions Have Become Nothing more than well-organized defrauding of taxpayers
This is nothing more than well-organized defrauding of taxpayers. The unions have full time officials and lawyers looking for every way possible to way to increase benefits whether they are sustainable or not. It’s easy to spend other people’s money through these generous contracts; until it runs out. Then you become Detroit or Stockton.
It worked when Public Sector salaries were a fraction of Private Sector salaries and people’s life expectancy was 65 years or less and our country was growing consistently and robustly. Now that the Public Sector has enjoyed tremendous growth both in the number of people employed by all levels of governement as well as dramatically increased salaries, life expectancy continues to improve, and growth in the US is slowing and maturing it is not sustainable. Simple economics tells you that fewer people (private sector) can not support more people (public sector) indefinitely. It just can’t. If I was a public employee I would be very diligent in keeping my eye on what is already happening around the country with towns, cities, and even counties declaring bankruptcy and eliminating all previously given retirement benefits. The courts have ruled that it can be done and it has been done and will continue to be done as the benefits burden simply overwhelms town, city, county, and state budgets.
Life expectancy is now +80 years, not 65 years or less. That means a private sector employee who retires at 65 has an average retirement of 15+ years. For a public safety official retiring at 52, or a teacher retiring at 61, they collect benefits for many more years than that (20-30 years) now despite the fact that they haven’t contributed as much as they end up taking out of the system. The benefits are either too generous, or should start after 65 years so as not to incent these workers or their municipal employers to just put in extra time on the job to get their full pension.
The model is no longer practical. Can we convert them to 401k? Give them what should have been paid in to a retirement plan and let them manage it. They are the ones who should be responsible for making the money last till they are 90.
One local resident might have 45 years or pension based on 22 years of service.
Reader says Just reading some of the comments from municipal pensioners and union hacks on this blog, and it’s no wonder we’re in such a mess in this state
Just reading some of the comments from municipal pensioners and union hacks on this blog, and it’s no wonder we’re in such a mess in this state. They are living in fantasy land, expecting new municipal hires to be able to afford their own house and property taxes in Ridgewood, and thinking that their oversized pensions and gold plated healthcare-for-life are sustainable if we just keep raising property taxes every year… I’m not even sure these benefits were negotiated in good faith anymore judging by the comments – when you have a potential conflict of interest with former Police and Fire management on the Village Council approving outrageous wage and benefit increases, i.e. in the 2009 CBAs and again when they were re-opened in 2010, you leave the Village taxpayers with an even bigger entitlement liability. Were those CBAs really negotiated in the best interests of taxpayers when you hand out +4% annual wage increases during a recession ? All the union guys talk about is the current cost for public safety – they always ignore the future fixed costs for pensions & healthcare which will cost us hundreds of millions of dollars in the next 15 years – money that we won’t be able to use for services and improved quality of life for Villagers. Many of these retirees don’t even live in Ridgewood !
Reader says As long as the employee remains employed, this astounding rate of increase is all but guaranteed
Why have we made such generous promises on accumulated sick leave to municipal employees ? Ridgewood employees receive 15 sick days per year (vs. 3~5 for the average U.S. employee). Unused days may be accumulated at current pay levels until retirement, at which time retirees may elect to take half the accumulated days off with pay (up to 3-6 months, depending on department) or receive an equivalent lump sum payment at the much higher pre-retirement compensation level. The allowed sick days are in addition to generous vacations, with a starting vacation benefit for Ridgewood employees of 12-13 days, depending on department, which can grow up to a maximum of 31 days. This compares to median full-time U.S. workers receiving only 13 days of paid leave per year. The FAC recommended that the maximum number of permitted paid sick days be reduced from 15 to 7 days per calendar year, and that all sick days (up to a maximum of seven) must be used during the calendar year. Unused sick days should NOT be accumulated beyond December 31st of the same calendar year, in which they are permitted. Sick days should not be transferrable to another employee.
In practice it looks like unionized municipal workers automatically get their annual negotiated wage increases, PLUS annual step wage increases, cost of living adjustments, longetivity bonuses, etc. The STEP schedules rapidly accelerate employees’ base salaries every year, particularly in the first 10 years of employment. One Ridgewood Step Schedule for employees hired after 2010 starts at a base salary of $32,000 in the first year of employment. Under the schedule, the base salary increases to $81,971 by the end of the fifth year of employment. This represents an incredible 156% increase or a compounded annual rate of increase over 20%. This does not include the publicly disclosed 4.2% annual wage increase or a 2% bonus after year four. As long as the employee remains employed, this astounding rate of increase is all but guaranteed. Although the agreements state that the annual increases are “not automatic”, employees expect them and, in practice, it is rare that they are not approved.
Ridgewood supervisors stress staffing needs at budget hearings
APRIL 3, 2014 LAST UPDATED: THURSDAY, APRIL 3, 2014, 3:25 PM
BY BY DARIUS AMOS
STAFF WRITER
Ridgewood Council members and department supervisors continue to search for expense reductions as they work toward balancing the 2014 municipal budget. Their overall goal, which was achieved last year, is to introduce a plan that features a zero percent average tax increase.
Last Thursday, council members reviewed spending proposals from several smaller departments, including several overseen by Chris Rutishauser, head of Ridgewood’s Department of Public Works. Village Clerk Heather Mailander discussed the individual budgets of the departments that she directs.
The engineering division will incur one significant staffing expense, according to Rutishauser, who is hoping to promote a senior engineering aide to the position of principal engineering aide. The proposed personnel move has been requested to fill a vacancy created by a retirement in 2010.
Rutishauser, Ridgewood’s engineer, highlighted a spending decrease, noting that he budgeted for reduced spending on public works education and training, which was a $4,700 item.
The Village Council has scheduled the first of several Budget Hearings for 5PM on Wednesday, March 19th. The Hearing will take place in the Village Hall Court Room, 4th Level, 131 N. Maple Avenue, Ridgewood. Additional dates to follow.
Readers debate State worker give backs on pensions and healthcare
The pensions and benefits for the officials and employees has already been reduced by the legislature, the costs of health benifits should be curbed by the legislature as well, but for the health care providers to raise costs they should have to go before the board of public utilities regarding tax funded health care costs. Why come after the worker when the health care vendors are milti-billion dollar enterprises, I’ll tell you why, too many politicians at all level of Govt. own stock in these companies and that kind of legislation might affect the stock prices.
Hummm , well in the Private sector I used to pay over $600 per month for health insurance for a single person working in finance and now I have a consulting contract were as part of the deal I pay a bit over $400 per month for insurance (up over 25% since Obamacare) So for the record how much do you really pay in??
In 2010, Ridgewood ranked 3rd highest in Bergen County in employees making more than $100,000 with 70 employees or 24.4%
In 2010, Ridgewood ranked 3rd highest in Bergen County in employees making more than $100,000 with 70 employees or 24.4% of the Village workforce compared to our neighboring communities of Glen Rock at 12.6%, Midland Park at 2%, Ho-Ho-Kus at 1.6% and Westwood at 2.6%. Ridgewood is only one of four municipalities in Bergen County with a full-time Fire Department and 67% of Firefighters (28/42) had base salaries over $100,000 in 2011. The median for Ridgewood FD was $118,290. 80% of Ridgewood Police (33/41) had base salaries over $100,000 in 2011. The median for Ridgewood PD was $128,239. Annual vacation benefit for Ridgewood employees can grow up to a maximum of 31 days, excluding compensatory time off, sick days, and other forms of paid leave – this compares with 13 days for the median full-time worker in the U.S. in 2011. Qualified retirees (25 years of service for police & fire) are eligible for pension (65% of compensation prior to retirement) and medical benefits (at no cost) for life. Upon death, the pension and benefits accrue to the retirees spouse for his or her life. The number of public retirees in NJ receiving over $100,000 in pension payments increased 28% in 2011, including 6 retirees from Ridgewood Village departments receiving over $634,000 per year (an average of over $105,000 each), excluding health benefits, according to New Jersey
Reader says the Ridgewood municipal is budget is well managed and the BOE budget is where the runaway spending is
Do you want to base your conclusions on the faulty FAC report and ignore the fact that the Village provides more services at a lower municipal mil rate than all of the other towns I referred to in my post as #20 that is fine. None of the towns listed there provide garbage pickup, fully staffed fire services, recreation services for kids and seniors or a sewage treatment facility for their residents, that is a fact, and. How that is a union talking point is beyond me.
You claimed that I am only providing half of the story and I am leaving out the property taxpayer’s perspective,” I am a taxpayer, and have been a taxpayer in Ridgewood for many years. If anything is only providing half the story it’s your FAC report. It only tells half the story since it does not even consider the cost to the residents for the Board of Education (BOE). If your report included the BOE then I would have to agree that the largest portion of the Village Tax bill (BOE) has been increased at an alarming rate and is not sustainable.
How do I arrive at that conclusion? Here is the 2011 Bergen County property tax data showing the town – County – total tax levy – % County Taxes – % School Taxes % – Municipal taxes. This is the latest year available on the NJ.com by the numbers web site. There are 70 Municipalities in Bergen County. Below are 18 municipalities that have an equal or greater percentage of their municipal taxes dedicated to the school budget like Ridgewood. The other 51 municipalities have a lower percentage than Ridgewood dedicated to their school budget and a higher percentage number dedicated to their municipal services. Ridgewood’s municipal tax levy is lower than the other 51 Municipalities in Bergen county and is even below the state calculated average of 29%. You can draw your own conclusions from this data however this data clearly shows that the Village municipal budget is very well managed as contrasted with other Bergen County Communities and the overall state average. It also indicates that BOE budget is out of control and unsustainable.
Town – County – tax levy – % County – % BOE – % Municipal
Ridgewood Village Bergen $130,248,198.77 10% 65% 25%
Woodcliff Lake Borough Bergen $38,129,520.22 12% 66% 22%
Statewide total $25,643,843,500.01 18% 52% 29% of 567 municipalities
https://www.nj.com/news/bythenumbers/
This information confirms that the Ridgewood municipal is budget is well managed and the BOE budget is where the runaway spending is since the Ridgewood BOE takes a higher percentage of the total tax bill than 51 other Bergen county municipalities. The FAC report ignores this fact, and therefor is even more faulty than I originally thought.
