Dear Mayor:

As you know, the bulk of the enormous rise in local property taxes has come from uncontrolled increases in the cost to municipalities of salaries and benefits for police and fire personnel. In response to a growing municipal dissatisfaction with this situation, the League formed an Arbitration Committee some months ago, chaired by Denville Mayor and League Second Vice-President Gene Feyl and East Orange Mayor and League Third Vice-President Robert Bowser.

Police and fire interest arbitration awards and settlements (often made to avoid arbitration) concerning salaries and other economic benefits continue to exceed budget cap limitations. Therefore, at the recommendation of the League Arbitration Committee and League Labor Relations Counsel Gerald L. Dorf, we have proposed an amendment to the current arbitration law. The change we propose would apply the budget cap to police and fire arbitration awards, thus putting a more rational limitation on the upward spiral of these municipal expenses. Keeping these costs in line with the limit on the rest of municipal budgets would go a long way to mitigate the current property tax crisis in our state. (For further background on this subject, see the article by Mr. Dorf, "Interest Arbitration Reform: Again?", in the April, 2006 issue of Municipalities Magazine).

We have enclosed a SAMPLE RESOLUTION urging this change which we hope your governing body will consider. If you do pass such a resolution, we would appreciate receiving a copy. If you have any questions or concerns about this communication, please contact Deborah M. Kole, Staff Attorney, at the League, ex. 37, or at dkole@njslom.com.

Curb the rise in police, fire pay - The Times Editorial (PDF)