Christie says series of measures will help N.J. officials keep property tax collections under 2 percent cap without having to make layoffs, service cuts Watch video
Gov. Christie, pictured here speaking on Oct. 14, introduced a tool kit for local governments to keep property taxes down while avoiding layoffs.TRENTON — So exactly what is this "tool kit" Gov. Chris Christie and lawmakers have been haggling over the past few months?
In July, the Republican governor and the Democratic-controlled Legislature struck a deal to bar local governments and school districts from raising property taxes more than 2 percent a year, with a few exceptions.
But Christie also proposed the state enact a series of measures he calls a tool kit to help local governments keep increases in property tax collections to that 2 percent limit without having to make massive layoffs and cuts to services.
The cap takes effect Jan. 1. But the two biggest parts of the tool kit — arbitration and civil service reform — have not yet made it through the Legislature.
Here’s a primer on the two biggest pieces of the package, plus a few other measures that have not made headlines.
Arbitration
When a town deadlocks with its police or firefighters unions during contract negotiations, a third-party official called an arbitrator steps in to hear both sides of the dispute. The arbitrator then decides what the settlement should be — a ruling that is final.
Even though towns will be kept from raising their property taxes above 2 percent, right now there’s nothing to stop arbitrators from giving its employees a raise above that.
Christie wants to stop arbitrators from giving workers awards exceeding 2 percent – a figure that includes salaries and benefits.
He’s also proposed changes in the way arbitrators are selected and wants to force them to weigh how their decision will affect property taxes.
Democrats have agreed with some of those proposals, but not the 2 percent cap.
Who supports it: Republican lawmakers, many local officials
State Sen. Michael Doherty (R-Warren), who sponsors the Republicans’ version of arbitration reform in the state Senate, said since lawmakers passed a 2 percent property tax cap they have to follow through on capping contract awards.
"If suddenly arbitration awards are given out at 4 percent, what are you going to do? Turn off the lights, stop paving your roads?" said Doherty. "It’s simple arithmetic: if you have a 2 percent property tax cap, where are you going to get the money?"
Who is opposed: Police and firefighter unions
Steven Cohen, a labor attorney who represents public employee unions, said arbitration reform will eliminate any incentive for the parties involved to come to an agreement before going into arbitration. Instead, both parties will rush to arbitration and get rid of any possible gains for either side by going through negotiations, he said.
"It’s Orwellian because they’re not reforms. They’re going to set back the state of labor to the dark ages," said Cohen. "What [Christie] is doing is basically creating a law which would eliminate collective bargaining in the state."
Civil service reform
Civil service involves the procedures used to hire, promote and fire public employees and was designed to prevent public jobs from being handed out to political supporters, said Rutgers School of Management and Labor Relations Professor Jeffrey Keefe.
Employees must pass tests in order to gain employment or get promoted. Civil service sets procedures for layoffs that give preference to the most senior employees. If someone in the system is laid off, they may use "bumping" to take the job of a more junior employee.
The tool kit proposal would let municipalities opt out of civil service. About one-third of the state’s municipalities use civil service rules, and towns would have the option to hold a vote to get out of the system. A referendum initiated by 15 percent of voters could force a vote on civil service.
The tool kit includes changes to the bumping procedures when employees are laid off or divisions are eliminated through consolidation of services.
Civil service also sets up often cumbersome rules to fire current employees, Keefe said. The tool kit proposals would also consolidate the disciplinary process, considering both minor and major infractions in the same forum.
It remains unclear how much money could be saved by eliminating civil service, Keefe said.
Who supports it: Mayors seeking relief for their budgets
"We believe the ability to manage your resources through these onerous rules and regulations is running contrary to the whole philosophy of trying to economize, to manage, and to run government like a business," said League of Municipalities Executive Director Bill Dressel.
Who is opposed: Public employee unions, good government advocates
"We’ve got a problem of public corruption here. We’re going to have our public employees who we pay doing full-time political work for our easily corrupted politicians," Keefe said. "There might be some very serious long-term costs of leaving the system."
Some other tool kit measures that have not been enacted:
• Limiting sick and vacation time payouts to $15,000 for all retiring public workers. It has passed both houses of the Legislature and is currently on the governor’s desk.• Giving executive county superintendents the power to force school districts to share services, and allowing them to void collective bargaining agreements between districts and unions that would prompt them to exceed the 2 percent property tax cap.
• Capping spending increases for state government operations at 2 percent.
• Barring new employees of non-government entities from getting public pensions. Currently, employees of a few private organizations that lobby on behalf of governments receive government pensions.
By Matt Friedman and Ginger Gibson/Statehouse Bureau