
Municipal leaders say the next governor must address the lethal combination of a faltering economy, rising health care and pension costs and the perennial salary increases for public employees that have choked towns’ finances.
Governor Corzine, former U.S. Attorney Chris Christie and independent Chris Daggett say they will work hard to tackle issues like unfunded mandates, the state pension system, regionalization and affordable housing.
But the candidates offer varying approaches on how to institute reforms that will provide real tax relief for municipalities across the state.
Corzine says the key is to encourage more consolidation of services and agencies to streamline local government. Christie, the Republican challenger, vows to replace the current pension system with a 401(k)-type plan. And Daggett pledges to alter — or even repeal — the binding interest arbitration that has helped grant police officers and firefighters an average of 4 percent raises even in a slowed economy.
Binding arbitration
Corzine and Christie both say they would not eliminate or significantly alter the current system, which allows police and fire unions to have a state arbitrator settle their contract negotiations.
Corzine says the proliferation of governments and bargaining units makes it more difficult for arbitrators to keep costs in check and he would continue to push for regionalization.
Christie says he would push unions for bigger concessions than Corzine has.
Daggett calls the system “horrible” and says he would fix it, if not eliminate it. He says arbitrators should be required to take the economy into account when deciding on awards.
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Pension and health care costs
Corzine says he saved $6.5 billion over the next 15 years with revamped pension rules and concessions from unions, including contributions to health care costs. He also touts a hiring freeze that has cut state worker payrolls by more than 8,400 positions through attrition.
Christie proposes a new pension system for newly hired workers — except teachers, police and firefighters — that operates like a 401(k)-type plan. He would also eliminate pensions for part-time employees and more than 300 members of boards and commissions.
Daggett would consider a 401(k)-type plan or a hybrid to replace the current system and would apply changes to all new hires, including police, firefighters and teachers. He would also seek to eliminate tenure for teachers in favor of five-year renewable contracts and would tie pensions to average salary over 10 years or more, rather than the last three years when salaries are highest.
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Shared services and consolidation
Corzine says his administration has promoted the SHARE program, which offers grant money for study and implementation. He also signed a law creating the Local Unit Alignment, Reorganization and Consolidation Commission, which is reviewing issues surrounding regionalization.
Christie believes the governor’s approach — which last year included threats of cutting aid to small towns that did not pursue consolidation — is too aggressive. He says he would encourage towns to share services whenever it would save money and improve efficiency.
Daggett says shared services do not provide enough savings to make a dent in the state’s looming deficit. He argues that pushing through consolidation of school districts or towns costs too much in political capital to make it worth the modest reward and that the governor should focus on other methods of cutting taxes and spending.

Tags: arbitration, care, costs, governor, gubernatorial, health, pension, property, taxes, unions
February 13, 2012 to February 24, 2012 – Online
A team of Hoboken parents and educators is putting together a proposal for a new, science-themed charter school for Hoboken. As part of this process, they are reaching out to the community to gauge…
Organized by Laura Siegel | Type: survey
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