The Monmouth County Board of Freeholders is asking the state Legislature to permanently extend an existing 2 percent cap on interest arbitration awards.
In July 2010, Gov. Chris Christie and the Legislature enacted a permanent 2 percent cap on municipal and school board tax levies with limited exceptions that did not include police and fire arbitration contract awards.
In December 2010, the Legislature unanimously approved and Christie enacted a temporary 2 percent cap on police and fire arbitration contract awards in an effort to control increasing salary costs and to provide a solution to assist local governments in keeping property taxes down and costs under control.
The December 2010 legislation included an April 1, 2014 sunset on the 2 percent arbitration cap while the 2 percent property tax levy cap remained permanent for municipalities and school boards.
In June 2014, the Legislature unanimously approved and Christie enacted an extension to Dec. 31, 2017 for the 2 percent arbitration cap. However, the 2 percent property tax levy cap continues to remain permanent, without an exemption for police and fire arbitration contract awards.
Now, with the Dec. 31 sunset of the 2 percent arbitration cap looming, municipal and county governing bodies are calling on the governor and New Jersey’s legislators to keep that cap in place.
The freeholders are asking that the 2 percent arbitration cap be made permanent.
In a resolution, the freeholders said the law “empowers county governments throughout the state to effectively control public safety employment salaries and personnel costs by capping interest arbitration awards at 2 percent for base salaries, which includes step increments and longevity pay.”
The county’s governing body went on to say that the “failure to extend the 2 percent cap on interest arbitration awards will force county governments to further reduce or even eliminate essential services, critical personnel and long-overdue infrastructure improvement projects.”
The freeholders said “it is in the best interest of county governments, including (Monmouth County) and property taxpayers throughout the state struggling to make ends meet to permanently extend the 2 percent cap on interest arbitration awards.”
The freeholders are calling on New Jersey’s elected state representatives to enact legislation before Dec. 31 that will permanently extend the 2 percent cap on interest arbitration awards.