2% Interest Arbitration

 While the 2% property tax levy cap will continue, the cap on interest arbitration awards has expired.

Controlling Costs

The temporary 2% cap on police and fire arbitration contract awards was 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. 

We urge you to pass a resolution urging the State Legislature and Governor to renew the 2% cap on Police and Fire Arbitration Contract Awards.

League Advisories & Information

March 2019

• NJ Municipalities Labor Relations column Interest Arbitration After the 2% Hard Cap by Joseph M. Hannon, Esq.

May 1, 2018 

• Elected Officials Demand Passing of Taxpayer Cap on Interest Arbitration Awards

December 8, 2017 

• Coalition Letters Calls for Extension of IA CAP

September 28, 2017 

• Governor's Appointees to the Interest Arbitration Task Force Release the 2017 Report of the Governor's Appointees to the Police and Fire Public Interest Arbitration Impact Task Force

September 22, 2017: Joint Press Conference to Extend the 2% Interest Arbitration Cap

The League, the New Jersey Conference of Mayors (NJCM), and the New Jersey Association of Counties (NJAC) held a joint press conference urging the extension of the 2% interest arbitration cap (PDF). The press conference, which includes the Officers of the League, is part of our public campaign to educate the Legislature and the general public on the importance of extending this critical tool, which has proven to be an effective curb on property tax increases.

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