Christie Looking to Privatize State Jobs

Posted on March 12, 2010 by Donald Barbati

As reported in the Trentonian on March 12, 2010, Governor Chris Christie is looking privatize State jobs. Yesterday, Governor Christie created a task force to look at ways to privatize State jobs to save money as he tries to find a plug for a projected $11 billion budget deficit for the 2011 fiscal year.

Christie signed an executive order creating the five-person group to look at “every aspect of the way government does business.” He said privatization could narrow the scope of public services provided by the State’s nearly 75,000 workers and increase efficiency. Christie also stated that he would have ordered the audit even if New Jersey was not in dire economic need. Privatizing jobs would inevitably mean layoffs for State workers, but Christie said he had not asked the task force to come back with a specific level of savings.     

The creation of the task force comes just days after the new Republican Governor said he was wrong to think he could alter a deal Governor Corzine made with State workers that allowed them to keep pay raises and take furloughs in exchange for a no-layoff pledge. Democrats estimate that for every 1,000 workers laid off, the State would realize $30 million to $40 million in savings. However, according to Bob Master, spokesman for the Communications Workers of America District 1, privatization is a “failed tactic from the past that’s based on an ideological hostility to government.” Specifically, he indicated, “you get a real deterioration of services and you don’t save any money.” 

Governor Christie’s potential privatization could have an enormous impact upon New Jersey Public Safety Officers. As such, please continue to check this blog periodically to ascertain updates regarding privatization and the workers it will affect.

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Pension and Health Benefits Reform Introduced by Assembly

Posted on March 1, 2010 by Donald Barbati

On Thursday, February 25, 2010, Assembly Speaker Sheila Oliver and Assembly Republican Leader Alex DeCroce announced bipartisan Assembly legislation to reform public worker pensions and health benefits has been introduced.

They also said additional legislation to target pension and benefit reforms at state authorities and agencies and to close a loophole that allows public employees to collect a full pension while collecting an additional public salary are being finalized and will soon also be introduced.

Oliver and DeCroce sponsored the bills introduced, but additional sponsors will soon be added. The following bills were introduced:

A2461, which would:

  • Limit pension system enrollment to new full-time employees who work at least 35 hours per week for the State or 32 hours for local government and schools;
  • Base pensions for new police and firefighters on the three highest salary years rather than the highest single year;
  • Impose a pensionable salary cap for new employees of the Police and Firemen’s Retirement System and the State Police Retirement System; and
  • Repeal 2003 legislation that allowed a police or firefighter to retire at any age with 25 years of service credit on a special retirement allowance of 70 percent of final compensation.

A2460, which would:

  • Require all public employees to pay at least 1.5 percent of their salary toward health benefits after the expiration of a current contract;
  • Require new state workers to work at least 35 per hours per week to qualify for health benefits; and
  • Require all newly-hired employees to pay at least 1.5 percent of their base pension toward health benefits upon retirement.

A2459, which would:

  • Eliminate the sick leave injury program; and

ACR115, which would:

  • Ask voters during a November election to amend the State Constitution to eventually require the State to pay the full amount of its required pension fund contribution.

This legislation serves as a companion to the legislation that was recently introduced in the State Senate. As such, please continue to check this blog periodically to ascertain updates regarding the same as it has tremendous implications for New Jersey Public Safety Officers.

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