Simmering debate pitted traditional Democratic supporters against their leadership Watch video
Senate President Stephen Sweeney (D-Gloucester), center, sponsor of the public employee pension and health care benefits bill, talks with Senator Loretta Weinberg (D-Bergen), right, before the start of a meeting of the Senate Budget Committee at the Statehouse last week where the committee heard testimony on the bill. Also shown at left is Senator Barbara Buono (D-Middlesex) who opposes the bill. Today, the Senate passed the benefits reform package despite union protests and some Democratic opposition.TRENTON — Senators divided along unfamiliar lines to pass a landmark piece of legislation that shifts more pension and health insurance costs to New Jersey's more than 500,000 public workers.
Relying on the Republican minority instead of his own caucus, Senate President Stephen Sweeney (D-Gloucester) secured passage of the controversial bill, which would double what most teachers, firefighters and police officers must pay toward their health benefits — and, in many cases, triples those costs.
It would also shift the retirement age for many workers from 60 to 65. It would eliminate cost-of-living increases that help workers offset inflation and property tax hikes. And it would make out-of-state care at hospitals in New York and Philadelphia much more expensive and in some cases unaffordable for many public workers.
With the bill's passage, Sweeney delivered a major victory to Gov. Chris Christie, who has been calling for structural reform to the pension and benefits system for months. Meanwhile, protesters decrying the legislation outside the Statehouse could be heard inside the Senate chamber.
"No one in the last 10 years has passed more pro-union legislation than myself," Sweeney said on the floor of the Senate, citing laws that ensured paid family leave and minimum wage increases. But the state's pension liabilities have spiraled out of control and legislators had a duty to act, he said.
"How will history judge us if we fail to take action today?" he asked.
The legislation (S2937) passed 24-15 with support from a handful of Democrats: Teresa Ruiz, Jeff Van Drew, Fred Madden, Jim Whelan, James Beach, Brian Stack and Donald Norcross.
Other Democrats gave floor speech after floor speech condemning the bill, saying it curtailed the rights workers won during the Civil Rights struggle, drawing applause and cheers from the audience in the gallery.
Senate Majority Leader Barbara Buono said undermining the collective bargaining process "erodes our identity as a nation."
"Today is all about politics," she said. The bill was a result of "back-room deals" instead of open debate. It restricts competition, "an affront to free-market principles," she said.
The state's fiscal mess was triggered by poor decisions made on Wall Street, said Sen. Linda Greenstein (D-Middlesex), not by public workers' health benefits and pensions.
"Collective bargaining is a basic human right," she said. "If Gov. Dannel Malloy could use persuasion to save $1.6 billion dollars in Connecticut, we can do the same here in New Jersey."
Sen. Paul Sarlo (D-Bergen), chairman of the Budget Committee, said he had yet to see any research showing costs would actually decrease. The figures cited at a Budget Committee hearing Thursday — projecting that the state would save $9 million in the first year while towns saved $5 million — were "made up" and "thrown as a carrot."
"No one has been able to back that up," Sarlo said.
Democrats also criticized the bundling of both bills into one. A pension overhaul by itself would have been doable, they said, and added they were dismayed Sweeney bowed to pressure from Christie, who wanted one bill instead of two.
"I find that an offensive reason not to split the bill," said Sen. Loretta Weinberg (D-Bergen).
Sweeney's defenders were mostly on the Republican side of the chamber. Sen. Joseph Kyrillos (R-Monmouth), a close friend of Christie's, called it a "historic day" and praised Sweeney's leadership.
Sen. Joseph Pennacchio (R-Morris), the bill's co-sponsor, said most increases to workers' health benefits have been legislated over the years — not negotiated — and New Jersey could not afford to kick the can down the road anymore.
New Jersey faces a $53.9 billion pension deficit. Health care costs have also soared, and there are $66.8 billion in unfunded liabilities. Christie has said the system is barreling toward insolvency by 2020.
"Today, the taxpayers are victors," said Senate Minority Leader Tom Kean Jr. (R-Union).
Before the vote, the Senate passed an eleventh-hour bill also proposed by Sweeney that loosened restrictions on public workers seeking out-of-state treatment.
A majority of Democrats opposed that provision, too, even though they acknowledged it was better than what Sweeney was proposing on Friday.
The provision, as it was passed today, lets public workers choose whether to buy health insurance that covers out-of-state treatment or a cheaper option that directs workers to New Jersey hospitals unless a doctor decided that no one here could handle their case.
Sen. Joseph Vitale (D-Middlesex) said that still puts world-class medical care in New York and Philadelphia out of reach for many public workers, who will not be able to afford their share of the costs if they enrolled in the out-of-state plan.
Many people will be forced to take the cheaper in-state plan, said Vitale and Sen. Shirley Turner (D-Mercer).
Republicans also opposed the provision but relented to Sweeney in order to secure passage of the larger bill.
"My first choice was your first choice and that was not having it in there at all," Sen. Diane Allen (R-Burlington) told Democrats.