For Immediate Release
Contact:
Senator Stephen Sweeney (856) 251-9801
Assemblyman Paul Moriarty (856) 232-6700
July 27, 2006
Sweeney and Moriarty Unveil Legislative Agenda for Government Employee Compensation Reform
"We want to work with the Governor and the Legislative Leadership to make change a reality – putting taxpayers first ."
(TRENTON, NJ) – Following through on their promise to put forth a comprehensive legislative agenda to reform out-of-control costs associated with government employee compensation and benefits, State Senator Stephen M. Sweeney (D-3), Chairman of the Senate Labor Committee, and State Assemblyman Paul Moriarty(D-4) today introduced a package of detailed reforms that would put taxpayers first and bring state and local government closer to "real world" employment standards. These efforts are essential if New Jersey hopes to stop the exodus of residents and businesses from our state. Sweeney and Moriarty also applauded Governor Jon Corzine, Senate President Richard Codey and Assembly Speaker Joseph Roberts for beginning to address these and other reforms in the coming days and weeks.
"Since the unveiling of our website www.StopSpendingMyMoney.com, the response from citizens has been overwhelming. We have received thousands of emails and fielded hundreds of phone calls from taxpayers throughout the state voicing support for these measures. Now that the budget crisis is behind us, we are introducing a fair, two-tiered approach to deal with runaway compensation deals that are bankrupting our state and local governments," said Sweeney. "Our initial announcement was not a cheap publicity stunt. We said we were not going to let threats and intimidation get in the way of doing what the people of New Jerseyelected us to do. This shows that we meant it, and we have every intention of getting meaningful legislation to the Governor's desk for his signature."
"We've read former Governor Richard Codey's report from the Benefits Review Task Force chaired by former Goldman Sachs executive Phil Murphy and agree with many of its conclusions. As a matter of fairness, we feel that progress is best achieved by applying new standards for new employees. For current employees, we support the adoption of those reforms suggested in the Murphy report. We believe this to be the most fair and equitable approach to taxpayers and government employees while bringing about the reforms the state so urgently needs," added Sweeney, Business Agent and Treasurer of Ironworkers Local 399 in Westville, NJ.
"Every day we read another story about egregious abuse of sick-time sell backs by government employees at taxpayer expense," said Moriarty. Sick time is for being sick, not extending a vacation. Our plan is for all NEW employees to either use it or lose it in that calendar year. No more accrued credits… no more buyout deals… No has to mean no."
Moriarty continued: "Neighboring states like New York and Pennsylvania realized that staying the course with spiraling government employee costs would have devastating effects on their financial well-being. That's why they established a two-tiered system to ensure that reasonable promises made to their state workers are honored and all new employees here on out would work by a new standard. Having said that, many of our reforms will apply to all employees and at all levels of government because it's only fair that some standards exist throughout the public sector."
"While the attached chart highlights our current legislative agenda, we also want to engage the public in a debate on whether we should switch to a system of 'Paid Time Off' (PTO) that would include sick-time and other forms of leave under one roof. New employee salary levels should be considerably less. Health and pension benefits should be substantially cost-shared, with increased contributions, deductibles and co-pays to make them consistent with private sector standards."
"New Jersey families are working harder than ever just to afford to live here. State government needs to set the example for other levels of government and live within its means just like our families do each and every day, "said Sweeney. "We applaud the Governor for speaking out this week and providing his vision for these and other needed reforms and respectfully request that our initiatives be included in this ongoing discussion."
# # #
Impact of Proposed Legislation to
Reform Public Employee Compensation and Benefits
|----------------------------------------+--------------------------|
| | |
| Legislative Initiative | Employees Applicable |
| | |
|----------------------------------------+--------------------------|
| | |
| 1. Mandate full-time government | New |
| workers employment at 40 hours a | |
| week. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 2. Mandate universal state holiday | Existing and New |
| schedule for all levels of | |
| government. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 3. Abolish sell backs for sick time, | New |
| vacation, and personal time -Use it | |
| or lose it in the same calendar year.| |
| | |
|----------------------------------------+--------------------------|
| | |
| 4. Raise the state worker retirement | New |
| age from 55 to 60 | |
| | |
|----------------------------------------+--------------------------|
| | |
| 5. Require that all employee benefits| Existing and New |
| are cost-shared. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 6. Eliminate lifetime health | New |
| benefits for retirees and their | |
| dependents for all new employees. | |
| | |
| | |
| | |
|----------------------------------------+--------------------------|
| | |
| 7. Eliminate sick leave injury | Existing and New |
| program. Require state employees to | |
| receive workers compensation payments| |
| in accordance with state statue | |
| without government supplementation - | |
| on par with the private sector | |
| standard. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 8. Ban double-dipping of health and | Existing and New |
| pension benefits. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 9. Prohibit those receiving a | New |
| government pension from being | |
| employed by any other public body | |
| while receiving pension and benefits | |
| (if you choose to work, your pension | |
| and benefits will be suspended). | |
| | |
|----------------------------------------+--------------------------|
| | |
| 10. Abolish longevity payments | Existing and New |
| ("Breathing Bonuses"). | |
| | |
|----------------------------------------+--------------------------|
| | |
| 11. Prohibit pensions for convicted | Existing and New |
| government officials. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 12. Calculate pension base on the 5 | New |
| highest years of employment salaries | |
| instead of three highest years. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 13. Eliminate pension or health | New |
| benefits eligibility for those who | |
| work less than 30 hours per week. | |
| | |
|----------------------------------------+--------------------------|
| | |
| 14. Ban overtime or other salary from| Existing and New |
| being included in pension | |
| calculations. The bill provides | |
| greater clarification and a more | |
| detailed definition as to what | |
| compensation should not be included | |
| as part of the pensionable base | |
| salary calculation. | |
| | |
|----------------------------------------+--------------------------|
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