February 08, 2010


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What's New at NJLESA
Pension Reform Update

Posted On: Feb 08, 2010 (12:01:27)

Pension Reform Update

We are closely monitoring the pension reform and are in contact with the other unions.  This may lead to possible litigation and we will keep the membership informed as we find out more facts on this.

 

NJ Gov. Christie....

Posted On: Feb 08, 2010 (10:28:44)

NJ Gov. Christie, Lawmakers Propose Sweeping Pension, Health Care Changes for Public Employees

by Claire Heininger, Statehouse Bureau

The Star-Ledger

Sunday, February 7, 2010

 

Gov. Chris Christie and lawmakers of both parties will unveil a series of sweeping pension and benefit reforms Monday [tomorrow, Monday, February 8, 2010] that could affect every public employee in New Jersey while saving the state billions of dollars, according to four officials with direct knowledge of the plan.  The proposals would require workers and retirees at all levels of government and local school districts to contribute to their own health care costs, ban part-time workers at the state and local levels from participating in the underfunded state pension system, cap sick leave payouts for all public employees and constitutionally require the state to fully fund its pension obligations each year.  Details of the four-bill package to be introduced Monday were provided to The Star-Ledger on the condition of anonymity because the four officials were not authorized to speak in advance.  The proposals go further than several past efforts at reining in taxpayer-funded pension and benefit costs, and if enacted would represent a major early victory for the new Republican governor and Democrats who control the state Legislature.  But supporters anticipate an angry response from public employee and teachers unions that wield considerable power throughout the state — though lawmakers argue rank-and-file workers would have safer pensions than before.  Christie’s office declined to comment, as did top Democrats and Republicans involved in crafting the bills.  All sides had made their feelings clear last month, when Senate President Stephen Sweeney (D-Gloucester) announced the upper house’s intentions to fix a system that would otherwise “go bankrupt.”  Lawmakers of both parties pledged their support, with Christie saying “bipartisan action is critical to reforming a broken pension and benefits system.”  Hetty Rosenstein, a state director of the Communications Workers of America [CWA], which represents 60,000 state and local workers, said she was still studying the bills but believes the reforms are misguided.  For most rank-and-file employees, benefits are “not extremely lucrative ... They are not out-of-whack,” Rosenstein said Saturday.  “This interferes with the collective bargaining relationship and it’s not going to save any kind of significant money.”  Steve Baker, spokesman for the 200,000-member New Jersey Education Association [NJEA], said Saturday the teachers union is still reviewing the bills and had no immediate comment.  The state pension system, which includes accounts covering more than 700,000 working and retired state, county and municipal employees and teachers, was underfunded by about $34 billion as of the last official count in 2008.  Retired workers and beneficiaries receive a total of $6.1 billion a year.  Health insurance costs have also skyrocketed of late, with a 2009 study projecting health care would cost $1.78 billion for state workers and retirees this year.  For local employers in the state plan, costs were expected to hit $856 million, and for school districts, $1.84 billion.  “Unless we take action now, New Jersey’s pension system will implode, leaving thousands of rank and file workers penniless in retirement,” Sweeney, an ironworkers union leader who has clashed with public employee unions, said in his announcement.  There are 467,872 current public employees enrolled in the retirement systems.

 

THE REFORMS

The four officials could not provide a formal estimate of the savings, but said the amount would reach billions over the next decade.  The reforms to be proposed Monday include:

 

Requiring all current public employees to contribute at least 1.5 percent [1.5%] of their annual salaries toward their health benefits, and all future retirees to contribute at least 1.5 percent [1.5%] of their base pension to their health benefits.  State employees were required to contribute at that rate beginning in 2007 under then-Gov. Jon Corzine, but many local governments and school districts do not require any health care contributions.  The minimum threshold would be incorporated into upcoming local contracts, and governing bodies could try to negotiate it higher.

 

Offering for voter approval a constitutional amendment forcing the state to fully fund its pension obligations in each year’s budget.  While the requirement would not yet be in effect, a full payment for the upcoming budget would be about $2 billion out of a budget in the $28 billion range.  Payments have dwindled to cope with budget woes, including Corzine eliminating this fiscal year’s contribution entirely.  Corzine also allowed local governments last year to postpone part of their pension payments, arguing that covering the full cost would drive up property taxes in a recession.

 

Changing how pension payments are calculated, and who qualifies for a pension, for future employees at all levels of government.  That includes repealing a 9 percent increase in benefits put in place in 2001, factoring in the highest five years of salary instead of three years to determine pension payouts, and banning part-time workers from participating in the pension system.  State employees would have to work 35 hours a week and local employees 32 hours a week to qualify.

 

Enrolling future part-time employees at all levels of government in a defined-contribution plan instead, and raising the minimum annual pay to participate to $5,000 from $1,500.  Current part-timers would continue in the pension system as long as they remain continuously employed. 

 

Capping payouts for unused sick leave at $15,000 for all public employees, mirroring the limit already in place at the state level, and limiting stored vacation time.  Retirement packages have sparked taxpayer outrage, including a 2008 deal to give a former Keansburg superintendent $740,000 in severance pay, including $184,586 for unused sick leave.

 

CORZINE BLAMED

 

Many of the concepts were put forward in 2006 during a special legislative session on reducing property taxes, and pushed since then by Sweeney and Sens. Barbara Buono (D-Middlesex), Nicholas Scutari (D-Union), Kevin O’Toole (R-Essex) and others.  But lawmakers said Corzine stymied efforts.  Unions have long pushed for the state to cover its pension obligations.  But groups wary of the new governor — especially the New Jersey Education Association teachers union — have already voiced strong resistance to some of Christie’s ideas on the basis that they interfere with the collective bargaining process.

Update: PPD Days: Preferring a Holiday, Which Falls on Your RDO

Posted On: Feb 01, 2010 (14:26:56)

Download: PPD Days.pdf
NJ Prisons Not Doing Enough to Re-Integrate Prisoners

Posted On: Jan 28, 2010 (10:54:41)

www.mycentraljersey.com/article/20100127/NEWS/100127029/Report-says-NJ-prisons-not-doing-enough-to-re-integrate-prisoners

State wrong on inmate numbers
Wednesday, March 11, 2009

By MARY ANN SPOTO

The Star-Ledger

A plan to close and auction off New Jersey's third-newest state prison and move its 800 inmates to already crowded facilities is generating controversy as officials grapple with tough budget times and critics worry the state is choosing money over safety.

Some Camden County residents and local elected officials hail the closure of Riverfront State Prison in Camden, which sits on the banks of the Delaware River, as key to revitalizing Camden's long decaying waterfront and its adjacent neighborhoods.

In their dreams for a city besieged by crime and unemployment, they envision concrete walls and barbed wire replaced by green parks and tidy homes.

"Riverfront State Prison has held Camden down since the day it opened on the waterfront," said Rodney Sadler, president of Save Our Waterfront, a citizens group.

But union leaders and some lawmakers say the decision to close the prison was driven purely by economics, could overburden county jails that house state inmates, and leaves little room if more crime produces more inmates.

"This was a rash decision without thinking it through, without any public input on it," said Assemblyman Scott Rudder (R-Burlington). "Why is this being expedited? What is really going on here?"

State officials say the move gives the state a rare opportunity to consolidate services and get an influx of cash from a property sale amid a $7 billion budget shortfall.

"Certainly because of the dire financial times we're in, we're looking at the efficiencies, looking at everything," said DOC spokeswoman Deirdre Fedkenheuer. "If you can close a prison, you have to do it."

The state plans to empty Riverfront before June by scattering the more than 800 inmates among other state prisons. The 17-acre site is scheduled to be auctioned April 20 to 24.

Treasury spokesman Tom Vincz said the auction date is not definite and depends on when the inmates are transferred. He said the state has not received an appraisal of the property. The Office of Legislative Services has said its assessed value is nearly $41 million.

However, in justifying the move, state corrections officials publicly overstated how much the prison population has dropped.

When confirming the decision to close Riverfront, officials said the number of inmates in New Jersey's prison system had decreased by 5,000 inmates - from about 27,500 to about 22,000 - over the past six years. In reviewing the records, The Star-Ledger found the population actually fell by just 387 inmates during that time.

Fedkenheuer acknowledged the incorrect figures, but said the state was not trying to be misleading.

"It was wrong and it was not deliberate," she said.

A medium-security facility, Riverfront opened in 1985 and was designed to hold 408 inmates. In recent years it consistently housed more than 1,000 inmates, despite its new capacity of 631.

For the past decade, the state's prisons have held more prisoners than for which they were designed, prompting officials to double-bunk cells and convert program space into dormitories. A budget report from the Office of Legislative Services noted state prisons are operating at 36 percent above their design capacity.

Corrections officials, however, say prison populations are declining and there is space in the state's 10 other adult correctional facilities to absorb Riverfront inmates.

James Austin, a criminologist who advises state prisons on re-entry and parole, said moves to close prisons are not unusual.

"Many states are trying to cut corrections budgets, and the only way you can cut them is to close facilities," he said. "Very few systems are at their design capacity."

Citing the high number of state inmates still housed at county jails, Rudder and Assemblywoman Dawn Marie Addiego (R-Burlington) called on Gov. Jon Corzine to keep the prison open.

"I am shocked the governor wants to close one of the state's newest facilities when there isn't enough room for the prisoners we have already," Addiego said.

The plan is also getting static from the corrections officers union, whose members would also be scattered to other prisons.

"Public safety should not be compromised because somebody wants that property to look over at Philadelphia and build a condo on it or whatever else they want built," said Gregory Kelley, president of local 105 of the state corrections officers union.

Corrections officers argued poor conditions at Southern State, a Delmont-based medium-security facility in Cumberland County comprised of modular buildings, warrant closing that prison before Riverfront.

Camden County officials, however, say they'll be glad to see the prison go.

At a recent meeting in Lawnside, Camden County Freeholder Jeffrey Nash told an audience filled with angry corrections officers that the prison's closure is key to transforming the city. He said the prison was forced on residents and prevents the expansion of the city's downtown and of Rutgers University's Camden campus.

"The residents of this community believe in their hearts...they do not want the prison to be on that location," he said. "They view it as the way that their community can turn things around and they can't get it done with a prison on its most valuable property."

 



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