A temporary 2-percent cap on police and fire arbitration contract awards expired on Dec. 31, but Hopewell Township Committee is not giving up on its request that state lawmakers reconsider and renew the cap.
The committee adopted a resolution at its Jan. 29 meeting that urges Gov. Phil Murphy, Lt. Gov. Sheila Oliver and the members of the 15th Legislative District to extend the cap for five more years to gather data and make a final decision.
“The 2-percent cap worked [to limit salary increases], and we would like to continue. The resolution is voicing our desire to that end,” Mayor Kevin Kuchinski said. Salary costs, to a great extent, drive property tax increases, he said.
The State Legislature approved a temporary 2-percent cap on police and fire arbitration contract awards in 2010 that was due to expire in 2014. Lawmakers extended the measure of three more years, with an expiration date of Dec. 31,2017.
At the same time, a permanent 2-percent cap was placed on the tax levy – not the municipal budget or the school district budget. The 2-percent cap on the tax levy does not include an exemption for police and fire arbitration contract awards.
Under interest arbitration, an outside arbitrator can step in to help negotiate an employment settlement if the police and fire unions cannot reach an agreement with municipal officials.
Meanwhile, an eight-member task force, made up of four appointees by then-Gov. Chris Christie and two apiece appointed by the state Senate President and the Speaker of the General Assembly, was set to release its report in December.
But the governor’s appointees released their report in September, ahead of the Dec. 31, 2017 date to release the final report and recommendations of the task force. A final report by the full task force was never released.
The report that was released in September stated that based on the current number of full-time police officers in New Jersey, the reduction in the growth of police salaries under the 2-percent cap had saved taxpayers nearly $429,000.
New Jersey property owners saved about $2.9 billion in property taxes between 2010 and 2015, based on the reduction in the growth of property taxes in that time frame, according to the report released by the governor’s appointees.
The resolution approved by the township committee pointed out that the expiration of the 2-percent cap on police and fire arbitration contract awards, coupled with a 2-percent cap on the tax levy, could mean towns would have to reduce or eliminate municipal services to pay for the salary increases.