TRENTON — Speaker Sheila Oliver (D-Essex) made her broadest public defense today of the legislation that would force public employees to pay more for the health insurance and pension. Testifying before the Assembly Budget Committee, Oliver argued that the legislation will bring property tax relief for homeowners and help municipalities continue programs and prevent layoffs. "I know that everyone...
Sheila Oliver, pictured in this file photo, gave testimony today before the Assembly Budget Committee about the planned pension and health benefit reform for public workers.TRENTON — Speaker Sheila Oliver (D-Essex) made her broadest public defense today of the legislation that would force public employees to pay more for the health insurance and pension.
Testifying before the Assembly Budget Committee, Oliver argued that the legislation will bring property tax relief for homeowners and help municipalities continue programs and prevent layoffs.
"I know that everyone in this room supports collective bargaining, but we must face the stark economic reality," Oliver said.
Oliver said when she became speaker she met with a group of financial experts who told her that lawmakers were trying to fix the pension system with "granulars of sand" when "boulders" were needed.
"We are taking bold, demonstrative large steps now," Oliver said.
At that point, someone in the crowd shouted "tax the rich." Oliver responded with "excuse me" as a State Police trooper escorted the rabble-rouser from the room.
Oliver pointed to Newark, in her own district, as an example of a city that was struggling without the overhaul. She said the city was having difficulty funding recreational, health and public safety programs.
"Inaction is just not an option for us," Oliver said.
Oliver also argued that the legislation was more fair than Gov. Chris Christie's initial proposal that would force public employees to pay 30 percent of the cost of the premium. The compromise takes into account the employees salary, she said.
"It's a fair approach that takes workers salaries into account and saves the pension system," she said.
Many towns would be left with no options, she said.
"This legislation is the correct legislation for this moment," she said.
Police and fire unions were angered last week when Assembly leaders announced today's hearing while negotiations were still underway.
Bill Lavin, president of the state Firefighters Mutual Benevolent Association, said union leaders met with Oliver's office on Tuesday afternoon and were told the issue was still under discussion.
Hours later, Oliver and Assembly Budget Chairman Lou Greenwald (D-Camden) announced they would introduce the bill today.
"The shock of what we felt was a betrayal was difficult to get over," Lavin said. "It's still hard to digest."
Oliver said they were fair to the unions.
"There were no commitments made to them about not moving forward," she said.
Previous coverage:
• Details of N.J. public worker pension and health benefits reform bill
• Gov. Christie touts bipartisan effort leading to public worker pension overhaul bill
• N.J. Senate panel approves pension, health benefit overhaul bill