New Hersey State of Muncicipalities Facebook Twitter  Linkedin with NJSLOM NJSLOM YouTube Channel NJLM Blog       


What is the 2% Interest Arbitration Cap and how it impacts property tax.
The temporary 2% cap on police and fire arbitration awards has been an effective tool to control salary increases imposed on municipalities by unaccountable arbitrators This cap provides a solution to assist local governments in keeping property taxes down and costs under control.

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

Citizens of NJ, help control property taxes, take action by contacting your legislators. Demand that they extend the 2% Interest Arbitration cap.
After clicking this link you will be taken to the NJ State Legislature’s website. Once on their page, locate your municipality; you will see a district number indicated next to it in parenthesis, this is your district. Next, click on your municipality and you will be taken to where your District is located on the webpage, from here click on “Legislators for District #”. These are your legislators. This website provides phone numbers but does not provide email addresses. The format for a legislator’s email is:
Asm(lastname) or Asw(lastname)

To learn more please look through the resources below. For more information on the process of arbitration, visit the League’s Interest Arbitration Resource webpage.

Sample email to send to your legislator.

Municipal Officials - Sample Resolutions & Social Media Posts
The League is urging municipalities 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.

Sample resolutions are available: Word or PDF

Help spread the word! Click here for sample social media posts to share this information on your social media pages and alert your residents.

League Advisories

Media Coverage

"In high-tax NJ, pay-hike cap for cops, firefighters, a hot issue” article by Michaelle Bond from The Philadelphia Inquirer posted at 10/18/17

Our view: Keep NJ arbitration cap that saves billions for property taxpayers editorial from Press of Atlantic City 10/15/17

“Will ending cop salary cap raise your taxes?” Q&A with State Policemen’s Benevolent Association president Pat Colligan and NJLM Executive Director Michael J. Darcy, CAE, from 9/28/17

“Local Leaders Urge Lawmakers to Extend Police and Fire Salary Cap” article by Christian Hetrick in Observer. 9/22/17

“Local Leaders Warn: Your Property Taxes Will Rise Unless This Happens” article by Samantha Marcus from NJ Advance Media for 9/23/17

“Are Democrats Dragging Their Feet on Arbitration Cap for Cops, Firefighters?” article by John Reitmeyer from NJ Spotlight. 9/21/17

Editorial: Trenton plotting sellout to police, fire unions ( Oct. 9, 2017

Editorial: NJ should extend interest arbitration cap for police, fire contracts, Mar. 24, 2014

Press Conference on Deadline on the 2% Cap on Interest Arbitration Awards, Mar. 20, 2014

Police and Fire Interest Arbitration Task Force Report Issued, Mar. 19, 2014


"2017 Report of the Governor’s Appointees to the Police and Fire Public Interest Arbitration Impact Task Force,” a report on the 2% cap on Interest Arbitration by Michael J. Dee, Esq. – Chair Appointee of the Governor; Robert M. Czech, Esq. Chair & CEO Civil Service Commission State of New Jersey – Appointee of the Governor; Timothy Cunningham, Esq. Director, Division of Local Government Services Department of Community Affairs State of New Jersey – Appointee of the Governor; Hon. Declan O’Scanlon, Jr. Assemblyman – District 13 – Appointee of the Governor

“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,  8/31/17

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

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





Privacy Statement | NJLM FAQ
New Jersey State League of Municipalities • 222 West State Street • Trenton, NJ 08608 • (609) 695-3481
  FAX: (609) 695-0151