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2% Interest Arbitration Extension

Unanimously approved by the Legislature and the Governor in  June 2014, the extension on the 2% cap on Interest Arbitration awards is set to expire on December 31, 2017. While the 2% property tax levy cap will continue, the cap on Interest Arbitration awards will expire on the same day that the final report and recommendations of the Police and Fire Public Interest Arbitration Impact Task Force is due, unless the Legislature and Governor act.

League Advisories

AUGUST 25, 2017 Take Action: Sample Resolution urging the State Legislature and Governor to extend the 2% cap on Police and Fire Arbitration Contract Awards for an additional five years

The temporary 2% cap on police and fire arbitration contract awards has been an effective tool to control increasing salary costs and provide a solution to assist local governments in keeping property taxes down and costs under control.  However, we recognize that this change in arbitration reform needs a longer time to mature in order to see the benefits of the legislation and its actual impact on the cost of local government budgets and the impact on taxpayers.

We urge you to pass a resolution urging the State Legislature and Governor to extend the 2% cap on Police and Fire Arbitration Contract Awards for an additional five years, at which time the Legislature will have hard data to examine and then make a final decision as to whether this law should be made permanent.

If the cap on interest arbitration expires, while the 2% property tax levy cap remains in effect, municipalities will be forced to reduce or eliminate municipal services in order to fund interest arbitration awards.

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Resources

“Why Christie says your property taxes could spike next year” article by Matt Arco with quotes from NJLM Executive Director Michael J. Darcy, CAE

"Are Democrats Dragging Their Feet on Arbitration Cap for Cops, Firefighters?” article by John Reitmeyer

“Murphy’s arbitration cap copout” editorial by Courier News Editorial Board, posted at myCentralJersey.com,  8/31/17

Sweeney: No Vote on Police and Fire Salary Cap Before Election, article by Christian Hetrick posted at Observer.com, 8/31/17

2% Arbitration Cap Needs to Be Extended; Article posted by the Star-Ledger Editorial Board on August 27

 

 

 

 

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