Arbitration Reform & "Back to Work NJ" Proposals

We are working on a proposal for Arbitration Reform and a new "Back to Work NJ" job and economy agenda. I am taking this opportunity to share both sets of talking points used by Speaker Shelia Oliver during Tuesday's Arbitration Reform Press Conference and today's "Back to Work NJ" Press Conference.

Speaker Sheila Oliver
Arbitration Reform Press Conference
Tuesday, November 23, 2010

What New Jersey taxpayers want and need is reform that controls property taxes but at the same time recognizes the brave men and women who risk their lives daily to protect us…and thus rewards them fairly for their sacrifices.

We’re here today because we have built a strong consensus around a responsible plan that will help taxpayers while protecting the rights of police and firefighters.

Everyone recognizes that arbitration reform is a substantial component in controlling runaway property taxes.

Now it’s time to put partisanship aside and join together in doing what’s best for New Jersey…not what sounds best in a sound bite.

We’ve taken a careful approach to this legislation and I think we have achieved a well-crafted balance that will, at once, control costs…

…while at the same time taking into account that there may be a need to enhance this legislation down the road, should any unforeseen consequences arise from it.

Simply put, the legislation would:

· Impose an average 2 percent cap on base salary increases for all police and firefighter arbitration awards.

· However, this cap would sunset in three years – which is the average length of police and firefighter contracts – in order to allow us to gauge its effectiveness.

· The cap would only affect interest arbitration, not collective bargaining.

· Pay for longevity, length of service and other similar compensation would be required to be included in the 2 percent cap.

· All contracts that expire within this 3-year window would be required to adhere to the cap.

· Municipalities would have the right to ask the state to force arbitration if it believes a union is not negotiating in good faith.

· Unions would also have the right to ask the state to force municipalities back into fact-finding and mediation if they believe the municipality is not negotiating in good faith.

· They legislation would also establish “last offer” as the terminal procedure for resolving contractual impasses between public employers and police and fire departments when it comes to benefits.

· Furthermore, it would change the process for selecting an arbitrator for interest arbitration in order to ensure a more varied and impartial group of arbitrators are making these important decisions.

· Arbitrators would also be required to meet stringent professional responsibility, impartiality and ethics and guidelines.

· Lastly, the process by which judgments are appealed would be changed.
I want to thank Senate President Sweeney for his commitment to ensuring that we get this done right.

I know that we are both committed to continuing to work toward reforming the state’s civil service system and tackling other key issues such as local government consolidation and shared services.

What gets lost in the day-to-day rhetoric is the fact that we have advanced more than 20 property tax reform bills this year, including many in the Governor’s so-called tool kit.

Rest assured, we will continue pushing forward with our reform agenda.

Unfortunately nothing will undo the damage from the Governor’s cuts in state aid to schools and municipalities and the decision to eliminate property tax rebates this year.

Those decisions are driving up property taxes throughout our state, but we are committed to long-term reforms that will especially benefit working class New Jerseyans.

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Speaker Sheila Oliver
“Back to Work NJ” Press Conference
Wednesday, November 24, 2010

With all the talk over the last few months focused on property tax reform, it seems to have been forgotten that we are still firmly in the clutches of an economic crisis.

As our unemployment rate hovers above 9 percent, the administration has focused little attention on stimulating the economy and creating jobs.

The most important thing to keep in mind is that all the property tax reforms in the world won’t mean a thing if people cannot afford to keep their home.

With this in mind, I think we can all agree on the importance of creating new jobs, reinvigorating our economy, and putting residents back to work.

In the coming weeks and months, we will turn a keenly focused eye towards a new landmark job creation package designed to stimulate employment and jumpstart economic development throughout our state.

The bills included in this package will be the focus of legislative activity through December and into early January as we complete work on key property tax reform measures.

Known as “Back to Work New Jersey,” this package will help lift our state out of this recession and make it more affordable for working class residents struggling to make ends meet.

For over two months, Senate President Sweeney and I have regularly convened roundtable meetings of business leaders to hear ideas for jumpstarting the state’s economy, improving its business image and creating jobs.

The plan involves putting ideas garnered from that group into action.

These initiatives are a great step toward retooling New Jersey as an economic force primed to lead the pack in the economic recovery.

Our goal is to create jobs for residents, ease outdated burdens on businesses and spark economic growth throughout the state by encouraging investment.

It’s a plan that benefits everyone.

Some of the highlights will include:

· Legislation based on the successful Georgia Works program. This program allows unemployed job seekers who have registered for employment services to receive workplace training from a potential employer for up to 24 hours per week for up to six weeks. Remarkably, in Georgia, more than 11,000 employers have participated and about 63 percent of participants have found jobs.

· Legislation to reform our corporate business tax by modernizing the formula…essentially switching from a three-factor formula to a single sales factor formula, something that has been a priority for our business community.

· Small business tax reform legislation to modernize the small business tax code to provide a meaningful tax break to entrepreneurs.

· Legislation that would expand the state’s Business Relocation and Retention Assistance Grant program to allow more companies to benefit and keep jobs in-state.

· Legislation that would create the New Jersey Closing Fund to stimulate economic activity by encouraging and promoting the retention and expansion of existing business and industry and creating and attracting new business and industry to the state.

Moving forward, we expect numerous other initiatives to be considered as well.

As we turn our attention to the pro-jobs agenda, the business roundtable discussions will continue so that participants can offer more ideas and track the progress of pending measures.

Rest assured, the legislature can walk and chew gum at the same time.

Property tax reform will remain a priority.

But as I said before…the two are intrinsically linked.

Residents cannot even begin to think about purchasing a home without a job.

Worse, countless others are being forced out of their homes because of foreclosures brought on by joblessness.

These are very real situations and I think each and every one of us knows someone seriously affected by this economic crisis.

Stimulating job growth, putting people back to work, giving businesses the tool to grow…all of these things should have been a priority for the past year.

Now it’s time to get back on track…with “Back to Work New Jersey.”