New Jersey Public Safety Officers Law Blog

Veterans Protest Christie's Proposed Changes To NJ Civil Service System

Donald Barbati — Tue, 14 May 2013 09:49:30 -0500

As reported by nj.com, with only four days left to file a formal protest, military veterans became the latest group to publicly speak out against the Christie Administration’s proposed changes to the New Jersey Civil Service System. About a dozen veterans joined the more than 100 protestors who packed the Assembly State Government Committee’s public hearing in Trenton today, saying they fear the proposal will make it harder for those who served in the military to land public jobs.

Civil Service rules govern the hiring, promotion, and firing of thousands of public workers across the State. Employees are currently hired and promoted based on examinations. Under the changes, some jobs would be grouped together as part of a “band,” allowing managers to move employees from one position to another without the need for exams. The State says that will streamline promotions and save money.

However, opponents claim that the changes would lead to favoritism, political patronage, and discrimination against blacks, gays, women, and other minority groups. Critics also fear the proposal would eliminate veterans’ preference, a program that helps former military members obtain civil service jobs. Currently, managers cannot pass over a veteran for a non-veteran or a disabled veteran for a non-disabled veteran.

The public has until May 17 to comment on the proposal. The Civil Service Commission, a panel of four members appointed by the Governor, will then vote on whether to adopt the changes. Critics also complained the Commission held only one public hearing on the matter, and none of the Commission’s members were present. Thus, Assemblywoman Linda Stender said the Assembly State Government Committee called yesterday’s meeting to give protestors another outlet. She said members of the Commission were invited to the hearing, but they declined to attend.

Stender and her fellow Democrats on the Committee lashed out against the proposal. ‘We’re talking about public dollars, about public access in a fair, competitive way to public jobs,” said Stender. “If you eliminate the tests and broad-band these titles, if you don’t protect veterans and equal opportunity, you’ve gutted the system.” Neither the State Assembly nor Senate has a formal say in the Commission’s vote, but Stender said she may introduce a resolution to protest the changes.

“Who is for nepotism and cronyism and (the idea that) the person is only qualified to get the job because the boss likes me and I make a great lunch date,” asked Assemblyman Herb Conaway, Jr. “We know these things happen. That’s why we have a civil service system in the first place-to stop that stuff. We’re walking a century backwards.”

NJ Assembly Passes Bill Calling For Investigation Of Halfway Houses

Donald Barbati — Tue, 30 Apr 2013 08:29:53 -0500

As reported by nj.com, the State Assembly approved a bill that calls for the creation of an independent task force to investigate New Jersey’s halfway houses-privately operated facilities used to supplement the State’s prison system. The measure (A3503), sponsored by eight Democrats and one Republican, passed in a 52-23 vote. It has not been introduced in the Senate.

“These privately run halfway houses were supposed to be a more economical approach to housing inmates, but the lack of oversight at these facilities has put inmates, staff and the general public at risk,” Assemblyman Nelson Albano said in a statement. “Two people were murdered by inmates who escaped. This cannot happen again.”

Last year, the New York Times published a series of articles detailing escapes, violence and lax oversight at the halfway houses, also known as residential community release programs. Much of the Times reports focused on Community Education Centers, which operates Delaney Hall and until last November counted one of Governor Chris Christie’s closest friends and advisers, William Palatucci, as a senior vice president. Following the series, the Assembly Law and Public Safety Committee held a hearing last summer concerning oversight and accountability of the State’s halfway houses. The task force bill was introduced because of that hearing, lawmakers said.

The bill approved by the Assembly would create a task force expected to examine how the halfway houses are run and how the State monitors the operations. The panel would be required to issue an interim report on its finding within a year of its first meeting, a final report a year after that.

The task force would be comprised of 17 members, including bipartisan representatives from the Senate and Assembly; the commissioners of corrections, labor, and human services; the executive director of the Juvenile Justice Commission; the chairman of the State Parole Board; the State Treasurer; a representative from the State Policemen’s Benevolent Association; and six members of the public.

Last week, corrections commissioner Gary Lanigan told members of the State Senate Budget Committee that his department had not yet compiled its own internal report on halfway houses-a requirement of the current fiscal year budget. Because of the tedious nature of compiling data, he said it was unclear when the study would be finished. Lanigan, though, did tell lawmakers he had no major concerns about how halfway houses are run and doesn’t believe any of those inspected by his staff should be shut down.

Camden County Parks Officers To Be Transferred To Countywide Police Force

Donald Barbati — Mon, 18 Mar 2013 08:58:07 -0500

As reported by nj.com, the last county parks department in the State will be shuttered soon, as officials in Camden County announced they plan to close the office due to a dearth of service calls and an already dwindling force. The 13 officers remaining in the parks police department will be transferred this spring to the countywide police force, which will be tasked with patrolling Camden City.

“This process has been ongoing for years and will finally bring Camden County in line with its counterparts in the state by eliminating this duplicative service,” said Camden County Freeholder Lou Cappelli, in a statement. “All parks police officers will be transferred and re-purposes to the Camden County Police Department’s Metro Division, so they can have more of an impact on crime.”

According to county officials, closing the parks police, which patrols Camden County’s 22 parks throughout 17 of its 37 municipalities, will save $2 million. County officials said the $2 million savings will be put toward other countywide public safety services, including the dispatch center.

Camden County spokesman Dan Keashen pointed to a study conducted for the county by the International Association of Chiefs of Police, which states the parks police office currently manages a “modest workload and the absence of attention-demanding crime.” Keashen stated the department averages about two services calls per day.

“The statistics speak for themselves and as we assess our public safety needs throughout the county it is evident that these officers would be more effective in the Metro Division,” said Cappelli. “That said, the budgetary savings from the elimination of the parks police can be reinvested into our emergency communications center and our growing emergency operations center, both of which are undergoing significant upgrades.”

Corrections Officers Oppose Planned Gloucester, Cumberland County Jail Merger

Donald Barbati — Tue, 12 Mar 2013 07:34:12 -0500

As reported by nj.com, a plan to close the Gloucester County jail and enter a shared services agreement with Cumberland County has some local law enforcement personnel, as well as those who work in and run Gloucester County’s jail, questioning and debating its supposed merits. It was announced Saturday that the two counties will work toward regionalizing their respective men’s county jail systems. The proposal has Gloucester County’s jail being closed, adult male inmates being sent to the Cumberland County Jail in Bridgeton and scaling back the amount of Gloucester County’s corrections officers by more than a third.

According to the Gloucester County Freeholder Board, the proposal, which they expect to vote on this Wednesday, could save nearly a quarter billion dollars over the life of the 25-year contract, as well as help reduce Cumberland County’s budget deficit. The net result could save Gloucester County $2 million this year, about $8.6 million next year, and more than $10 million in savings every year after that.

But for those who would be affected the most by this plan, the men and women serving as corrections officers and civilian personnel in the Gloucester County jail, the idea is one that they believe has not been fully thought out and one that not only put their jobs at stake, but also could become a public safety issue.

The Department of Corrections’ unions would like to see this plan looked at further and other options explored before it is finalized. “We would love to think they would want to work with us and see if any compromise can be made in Gloucester County,” Lt. Steven Newsom, the president of NJ FOP Lodge 165, which represents the jail’s superior officers, said. “We understand these fiscal times make us seek desperate measures. But safety should be a first priority.”

With regionalization, Gloucester County’s Department of Corrections employees are expected to be reduced to 33 uniformed officers, who will be used to transport inmates to and from court, the rest are expected to be laid off. The two counties have agreed that these individuals will be given an opportunity to apply for any positions that open up following the regionalization. But Gloucester County’s officers believe that the training they’ve received and the years of service, both on and off duty, should not be something discarded in a quick decision.

NJ Pension Woes Worsen, Report Shows

Donald Barbati — Fri, 08 Mar 2013 11:07:16 -0500

As reported by nj.com, a new report shows the retirement funds for New Jersey State Troopers, local police, and firefighters and public workers lost ground in the first year workers were required to pay more toward their pensions. The State paid one-seventh of its contribution to the system in the fiscal year that ended June 30, 2012.

An actuarial report released showed the funds had lower than expected investment returns. As a result, the gap between what is in the funds and the amount that will eventually be needed to cover retirements grew for the year. As you may recall, pension changes enacted in 2011 required workers to pay more.

Attorney General's Office Steps Up Oversight Of Edison Police Department's Internal Affairs Unit

Donald Barbati — Fri, 08 Feb 2013 08:28:54 -0500

As reported by nj.com, State and County law enforcement officials have stepped up oversight of the Edison Police Department’s internal affairs unit, which has been beset by allegations that it launched politically motivated investigations and quashed credible claims of brutality. The new measures, imposed by the State Attorney General’s Office and the Middlesex County Prosecutor’s Office, come in the wake of a recent Star-Ledger series on the police department and its internal affairs functions.

Paul Loriquet, a spokesman for Attorney General Jeffrey Chiesea, said allegations of excessive force are now investigated exclusively by the Prosecutor’s Office, bypassing the local internal affairs unit. Edison must now also provide monthly reports on its internal affairs activity instead of the quarterly reports required of other law enforcement agencies in New Jersey. Those reports typically consist of statistics. Edison must take the extra step of summarizing each of its internal affairs investigations, the spokesman said.

The State and County stopped short of taking over the department outright, a move sought by some residents and officers on the 168-member force. Loriquet said the monitoring is expected to continue indefinitely.

The newspaper’s series, published in December, revealed an agency in the grip of a vicious, years-long civil war. At least 15 officers or former officers had filed suit against the Township, claiming harassment, age discrimination, retaliation or political influence in promotions and demotions. A 16^th lawsuit was filed after the series ran. Legal fees and settlements from those suits have cost taxpayers millions of dollars, the Star-Ledger found.

At least 30 officers were fired or abruptly resigned amid allegations of inappropriate or illegal behavior over the past two decades. During the same time period, 72 troopers were forced out of the State Police, an agency 17 times the size of the Edison Police Department.

Edison’s internal affairs unit has been at the heart of much of the friction in the agency. The Star-Ledger found an IA officer gathered information on politicians and other civilians, acts that are alleged to be done at the behest of the FBI. Attorneys also contend the unit has protected officers accused of brutality.

Camden FOP Rejects Offers On County Police City Plan

Donald Barbati — Mon, 04 Feb 2013 16:27:35 -0500

As reported by nj.com, on January 31, 2013, the Camden Fraternal Order of Police rejected an offer from the County regarding hiring and representation of the planned countywide police department. The result was 142 to 62 in favor of the offer’s rejection.

If passed, the union would have to relinquish any attempt to transfer its existing collective bargaining agreement, as well as existing rank and seniority, to the new police department, and agree not to seek interest arbitration for one year. Concessions requested by the County in its offer include dropping all litigation aimed at stopping both the elimination of the city police department and the establishment of a county police force.

January 31 was also the last day current Camden police officers could submit applications to join the Camden County Police Metro Division, which will be tasked with patrolling the city under the new public safety plan. County officials stated the county administration building in Gloucester Township remained open until 8 p.m. to accept applications.

Camden Police FOP Push Back Vote On Plan To Consider All City Officers For County Force

Donald Barbati — Fri, 25 Jan 2013 09:17:23 -0500

As reported by nj.com, members of the Camden Fraternal Order of Police opted to postpone until next week a vote on an offer issued by the County Freeholders that would allow all current Camden police officers to be considered for the planned countywide police force.

FOP President John Williamson stated the union vote next week will be a ballot vote. “[The officers] want clarity on a lot of issues,” he said following the meeting, in which nearly 200 voting members of the FOP had gathered at the union’s headquarters on Federal Street. “They are still unclear about a lot of things.”

The offer from the County would allow the bargaining unit’s full membership to be considered for employment in the new regional police department, as well as provide continuity of medical and pension benefits for officers making the switch from the city to the countywide police force. The offer, presented in writing to the Camden Fraternal Order of Police chapter on January 15, would also allow Camden police officers with 20 years experience, rather than the customary 25, to retire with full pension and medical benefits. In addition, the County would recognize the FOP as the bargaining unit of the new department.

In exchange, the Camden FOP would agree to drop all pending or future litigation aimed at stopping both the elimination of the city police department and the establishment of a county police force. The union would also have to relinquish any attempt to transfer its existing collective bargaining agreement, as well as all existing rank and seniority, to the new police department, and agree not to seek interest arbitration for one year.

The FOP has until January 31 to decide whether to agree to the offer.

Camden County freeholders approved the first three hires to the new countywide police department on January 18, transferring a trip of superior officers from the current city police force. According to officials, the first members of the regional police force will be responsible for training new officers, assisting in employee background checks and serve in a supervisor role within the department.

Lawrence Becomes First In NJ To Privatize 911 Dispatching Services

Donald Barbati — Wed, 23 Jan 2013 08:55:53 -0500

As reported bynj.com, with a 4-0 vote, Lawrence became the first town in New Jersey to privatize its 911 police dispatching services, a move township officials said would save up to $1.1 million over five years and enhance public safety. The decision was fiercely opposed by current dispatchers and some residents who said not enough is known about the pay, benefits, and training that Cranbury-based iXP Corp., the winning bidder, would offer the dispatchers it hires.

Council members said they acted with public safety in mind. Only five dispatching jobs are filled out of nine positions, and police are routinely pulled off the job to help out. “Our population has gone up and our police have not gone up with that growth. We’ve had to do more with less,” Councilman Michael Powers said. “It’s not an easy decision or a decision I’m happy about.”

iXP Corp. won a two-year contract paying $719,400 a year to run the police department’s emergency dispatching service. The Council’s decision came after last-minute talks with the dispatchers’ union, who offered to renegotiate their contract with Lawrence in order to compete with iXP’s bid. “It’s been a really, really tough few months-I just ask you to please give it thought,” dispatcher and union vice president Susan Handelman said. “None of us want to leave. We’re all happy-we get along so well with each other.” She also said a vote for iXP would be only a short-term gain for the township.

Overall, iXP’s bid was about $1.1 million cheaper over five years when including costs such as having police officers fill in when dispatchers are absent, but without those costs it was cheaper by a slim margin to keep the dispatchers in-house.

Officials from iXP have said their recruiting and training practices produce reliable employees. Workers undergo background checks as well as hundreds of hours of training and ride-alongs with police. In their first year, those hired by iXP would earn the equivalent of the dispatchers salaries currently paid by Lawrence, through a combination of iXP’s starting salary and a sign-on bonus. Employees would also be eligible for quarterly and performance-based bonuses of $700 to more than $3,000 a year.

Lawrence is not the first community in the area to explore privatization of emergency communications. Officials in Princeton considered the idea last year but dropped it due to time constraints and officials’ heavy workload ahead of the January 1 consolidation of the two former Princetons.

Mercer County Corrections Officers Union Reports $15,000 Stolen From Bank Account

Donald Barbati — Tue, 22 Jan 2013 09:13:50 -0500

As reported by nj.com, the union representing Mercer County Correction Officers has discovered that about $15,000 was stolen from its bank account and used for a variety of purchases, the union treasurer said yesterday. Treasurer James Kinley said he reviewed the bank account for PBA 167 last week and learned there were charges in amounts from $100 to more than $2,000 for credit card payments and purchases from retail stores such as Gap and Lord & Taylor. “No one authorized this,” he said.

The mysterious charges began November 28 and continued until Kinley and union President Donald Ryland suspended the bank account last week. Kinley said he also filed a report with the Ewing Police on Friday. “The detectives are investigating,” Ryland said. “And we intend to prosecute to the fullest extent of the law.”

The checking account, which usually has about $200,000, is funded by monthly dues paid by the Hopewell Township-based union’s 245 members, Ryland said. It is used to pay legal fees, the union’s monthly phone and internet bill, office-related expenses and to make donations to local charities, he said.

Kinley said spending is authorized by the PBA’s board and then he authorizes a check for that expense. The union usually writes 10 to 12 checks a month, but there were more than 25 unauthorized charges on the account in the last two months, he said. He also said only a handful of people in the union have access to the account information.

Kinley and Ryland would not say if they thought the money was taken by a union member, but they said they will conduct an internal investigation. “We have to investigate within to ensure that there is not an issue,” Ryland said.

Ryland also said he and Kinley are in the process of opening a new, secure account for the union and are looking into getting a refund of the money that was taken.

Lawrence May Become First In NJ To Privatize 911 Police Dispatching Services

Donald Barbati — Thu, 17 Jan 2013 09:06:59 -0500

As reported by nj.com, Lawrence Township could become the first municipality in New Jersey to privatize 911 police dispatching services, should the council approve a contract worth $719,400 a year with iXP Corp. of Cranbury next Tuesday.

The idea of privatizing the town’s six-member dispatching team was first floated last fall, as Lawrence sought ways to plug a budget gap. Superstorm Sandy delayed the process until last month, when iXP returned the sole bid to take over the service, though at a higher than expected cost.

Current dispatchers have had a lukewarm reaction to the proposal, saying they don’t know enough about iXP and the pay and benefits the company will offer. In addition, privatization of police services has often been viewed with apprehension by the law enforcement community.

South Brunswick Police Chief Raymond J. Hayducka, the president of the New Jersey State Association of Chiefs of Police, said he’s monitoring the situation with interest. “There’s always trepidation with something new, especially if something is working,” he said. “It’s a new concept that hasn’t been tested yet in New Jersey, but I’m familiar with other states where it has been successful. It will be interesting to see.”

iXP has experience providing dispatch services similar to the Lawrence proposal, staffing a facility in Sandy Springs, GA that serves multiple communities in the Atlanta-metro area. While Hayducka said iXP has a very good reputation as a vendor in the police community, he also said any police chief would naturally be concerned about the selection of personnel. He noted that dispatchers use the National Crime Information Center database. “We would want to make sure they could provide the same service and the same background checks,” he said. “Dispatchers have access to NCIC terminals and sensitive police matters.”

Lawrence’s dispatchers make about $47,000 a year, while the one senior dispatcher is paid about $56,000. iXP said those dispatchers hired would, in their first year, earn the equivalent of their current town salary, through a combination of iXP’s starting salary and a sign-on bonus. In the succeeding years, they would earn the base salary and have opportunities for quarterly and performance bonuses of $700 to over $3,000 a year. However, they would no longer receive contributions to their pension plan, but could participate in a company-matched 401(k) plan.

Camden FOP Leaders Reviewing Offer From Freeholders On Regional Police Department

Donald Barbati — Wed, 16 Jan 2013 08:03:42 -0500

As reported by nj.com, the Camden Police Union’s leadership is reviewing an offer from the County Freeholder Board that would allow the bargaining unit’s full membership to be considered for employment in the new regional police department as well as provide continuity of medical and pension benefits for officers making the switch from the city to the countywide force.

The offer, presented in writing to the Camden Fraternal Order of Police chapter on Tuesday, would also allow Camden police officers with 20 years experience, rather than the customary 25, to retire with full pension and medical benefits. In addition, the County would recognize the FOP as the bargaining unit of the new department. In exchange, the Camden FOP would agree to drop all pending or future litigation aimed at stopping both the elimination of the city police department and the establishment of a county police force. The union would also have to relinquish any attempt to transfer its existing collective bargaining agreement, as well as all existing rank and seniority, to the new police department, and agree not to seek interest arbitration for one year.

Camden County officials stated that their offer will remain “on the table” until January 31, 2013. “We’re now at the point where we’ll have a deal very shortly, or we will not have one,” said Camden County Freeholder Director Louis Cappelli, Jr. in a telephone interview. “It’s now in the hands of the FOP.” Camden FOP President John Williamson stated he was still reviewing the offer, and will bring it to the full membership “as soon as possible.”

County officials have previously stated labor case law prevents them from hiring more than 49 percent of the current Camden police force to the new department under their current contract. Cappelli and other county officials stated the new agreement would allow for up to 100 percent of the city’s 265 police officers to the regional force.

A Camden County Metro Division of approximately 400 officers and 100 civilian employees will be tasked with policing the City of Camden, according to officials. Earlier this month, the New Jersey Civil Service Commission approved the city’s plan to lay off all uniformed personnel in the Camden Police Department. The layoffs have been tentatively scheduled to being on April 30.

Lawmaker Suggests Police Internal Affairs Functions Be Transferred To AG's Office

Donald Barbati — Wed, 19 Dec 2012 14:34:59 -0500

As reported by nj.com, the internal affairs functions of every law enforcement agency in New Jersey would be transferred to the Attorney General’s Office under a bill proposed by an assemblyman, who contends politics and bias too often creep into investigations when police departments police themselves.

Assemblyman Peter Barnes III (D-Middlesex), the son of a retired FBI agent, said he has long considered such a measure but decided to move forward after a two-part Star-Ledger series on the troubled Edison Police Department. Part of the newspaper’s series dealt with the internal affairs unit. Barnes, a former councilman, said that when police officers investigate colleagues, they can be too easily swayed by preconceptions about fellow cops.

“When you have officers investigating their own, it can lead to two divergent problems,” Barnes said. “You can have officers whitewashing legitimate claims because of friendships and relationships that develop. You can also have retaliatory-type claims. There might be a grudge or people vying for promotions, and one of them is in IA. I’ve never felt that was a good idea.”

The measure, which Barnes said he will introduce next month, calls for the creation of a new unit within the Attorney General’s Office and the hiring of investigators to staff it. The assemblyman said he knows the proposal will be controversial and, initially, costly. But, he contends that by centralizing IA functions, local and county internal affairs officers would be free to work in other areas of their departments, bolstering public safety. Most important, he said, it would strengthen the integrity of the internal affairs process, insulating it from intimidation or coercion.

Law enforcement officials called Barnes’ idea interesting, but said it would be very difficult to implement. New Jersey has some 30,000 police officers who work in more than 400 law enforcement agencies, said Raymond Hayducka, president of the New Jersey State Association of Chiefs of Police. That’s a lot of ground to cover for a single agency he said.

By statute, internal affairs investigations also have time constraints. Once investigators have developed enough information to substantiate a claim of wrongdoing, officers must be charged administratively within 45 days. Under those rules, the new unit could not afford a backlog of investigations, Hayducka said, adding he would still be interested in reviewing the measure.

Report: Port Authority Police Earn Far More Than Counterparts In Region

Donald Barbati — Mon, 03 Dec 2012 12:13:20 -0500

As reported by nj.com, Port Authority police officers earn far more than counterparts from most surrounding local, state and federal law enforcement agencies, including 57 percent more than New Jersey State Troopers, according to a report from an independent watchdog group.

The Citizens Budget Commission also found that officers of the Port Authority of New York and New Jersey earn 32 percent more than New York State Troopers, 25-48 percent more than officers in urban municipal police departments, and 23 percent more than federal agents in the region.

In issuing the report, the CBC called for tougher bargaining by the bi-state agency’s management in current talks with the Port Authority Police Benevolent Association union. “With negotiations underway, now is the time to focus on appropriate compensation levels for the Port Authority police force,” said Carol Kellermann, president of the CBC, a private, non-profit group based in New York City. “Based on this analysis, the next contract for Port Authority officers should make progress in aligning their pay to that of officers in large urban departments in the region.”

Most criticism of Port Authority police spending has focused on what critics say is excessive overtime spending, an issue the agency says it has tried to address.

Port Authority police officers patrol the agency’s Hudson River and Staten Island crossings, the region’s major airports, PATH system, shipping ports and other Port Authority facilities.

Senate Passes Bill That Would Punish Towns Refusing To Merge Public Services

Donald Barbati — Fri, 30 Nov 2012 08:48:08 -0500

As reported on nj.com, New Jersey mayors got some tough love from the State Senate, which passed a bill that would cut State funding for towns that refuse to merge public services with their neighbors. The bipartisan measure, touted as a way to lower New Jerseyans’ soaring property tax bills by reducing the size of local governments, is a top priority for Senate President Stephen Sweeney and has been supported by Governor Chris Christie.

It passed 25-9 after a short debate, with some Republicans and Democrats expressing concern about how it would play out. If the bill becomes law, state officials, including the treasurer, would decide which municipalities could combine services like garbage pickup and fire and police departments to save money for their taxpayers.

Critics say they support the basic idea but that the bill poses too many logistical hurdles for local governments and seeks to twist residents’ arms into approving mergers that may not be in their best interest. They also said recent changes that retain some protections for workers will weaken towns’ ability to save money.

Under the bill (S-2), towns singled out by the State would have to merge services voluntarily or put the question to a referendum. Those that don’t end up sharing services would lose property tax relief funds from the State and would not be able to go above the 2 percent cap on property tax increases to make up the loss.

After a recent amendment, towns with workers that have union protections may not be able to share services with towns that don’t have those union benefits. But the nonpartisan Office of Legislative Services said in a fiscal analysis this month that the bill still cuts other union protections such as severance pay for laid off workers, and local governments could still save money by pooling “costs associated with equipment, maintenance, and personnel.”

The bill is pending in the Assembly, where it has yet to get its first committee hearing.

Christie Administration: NJ Revenue Falling; Costs Rising in State

Donald Barbati — Thu, 18 Oct 2012 07:26:07 -0500

As reported by nj.com, the Christie administration has advised Wall Street that the State’s share of unemployment and Medicaid costs are expected to rise above expectations against a backdrop of lagging revenue collections, according to an amended report filed Monday. The State also warned Wall Street that the combination of rising costs and slumping revenue may force the administration to make difficult mid-year changes, which could mean cuts, in the $31.7 billion spending plan.

This is a much more somber tone than Governor Chris Christie has struck in public when talking about the State’s budget and economic outlook. Although revenues have grown modestly during the first three months of the fiscal year that began in July, they are $175 million, or 4%, less than Christie projected. The biggest shortfalls were in sales tax collections, which fell nearly 7 percent short of Christie’s projections, the State disclosed. Income tax collections, the most important revenue source, are doing better than expected.

Christie’s revenue estimates for the fiscal year have come under intense scrutiny since he used robust projected growth as evidence of a “Jersey Comeback” in January. The expected 7.4 percent growth rate is among the highest in the nation, but now collections must grow closer to 10 percent to make up for the slower-than-expected revenue thus far. Since January, the unemployment rate has swelled and the State has repeatedly failed to reach its revenue targets.

Christie has also said that revenues are growing enough to pay for a Democratic-sponsored plan to provide an income tax credit equal to 10 percent of residents’ property tax bills. But Democrats believe enacting the cut in this economic climate is reckless and have blocked the Governor’s attempt. “This is just another reason to be concerned about the dire fiscal situation in Chris Christie’s New Jersey,” said Assemblyman Vincent Prieto, chair of the Assembly Budget Committee. “As the people of New Jersey want and support, Assembly Democrats will continue to be fiscally responsible, and hopefully Governor Christie finally decide to join us in that effort and will put aside this ridiculous notion that everything is just fine.”

The State also advised Wall Street that there may be problems on the spending side. Federal subsidies for unemployment payments and other related benefits are expected to expire in December, forcing more costs to the State. In addition, the Medicaid waiver that was recently approved by the federal government took longer than expected and will not capture the expected savings, the State advised. “The above situations may impact the projected ending balance for fiscal year 2013. As a result, other budgetary actions may become necessary during the course of fiscal year 2013,” the State warned.

NJ Voters To Decide If Judges Must Pay More For Pensions, Health Care

Donald Barbati — Wed, 17 Oct 2012 14:44:22 -0500

As reported by nj.com, New Jersey voters will get the last word on whether state judges can be forced to pay more for their pensions and health care. A question on the November 6^th ballot asks voters to amend the state constitution to allow a 2011 law to be applied to judges and Supreme Court justices. The law requires more money to be deducted from public workers’ salaries to help pay for benefits.

A Hudson County Superior Court judge challenged the law and won. The Supreme Court subsequently agreed that the law violated the State Constitution by effectively reducing judges’ salaries while they’re on the bench. The provision was meant to protect judges from the possibility of retribution by the executive or legislative branch for issuing decisions with which they disagreed.

Governor Chris Christie and members of the Legislature who supported the divisive pension and health benefits overhaul law derided the Court’s ruling. The Legislature approved a resolution placing the question before voters in November within days of the Supreme Court ruling, a rare showing of unanimity among the two parties, by the two chambers and between the two branches.

Opponents worry that the amendment will threaten judicial independence and leave judges vulnerable to financial retaliation for unpopular rulings. Others say the wording of the ballot question leaves open the possibility that judges could be singled out for salary and benefits cuts in the future.

Some of the State’s 462 judges are already paying the higher benefits contributions, either because they were hired after the law took effect or they were not covered under the constitutional provision. The law raises judges’ pension contribution from 3 percent of their salary to 12 percent by 2017. Most judges earn $165,000.

Christie and lawmakers argued at the time that higher benefits contributions were needed from workers to help keep the retirement and health care systems for teachers, police and firefighters, judges, and other public workers from going bankrupt. The systems continue to be underfunded by tens of billions of dollars, but Christie said Tuesday that pension contributions paid by local governments had shrunk by $116 million as a result of the changes enacted two years ago.

The increase was most dramatic for judges, who went from paying the smallest percentage of salary toward their pensions, to the highest percentage. Their pension fund had enough money at the time to meet just over half of its eventual obligations.

Figures Show NJ Revenue Collections Far Behind Gov. Christie's Projections

Donald Barbati — Thu, 20 Sep 2012 06:45:38 -0500

As reported by nj.com, tax collections during the first two months of the current budget year fell significantly short of Governor Chris Christie’s aggressive revenue projections, according to figures released by the Treasury Department. Monthly revenue reports this early in the year do not typically garner much public attention, but they have taken on added meaning this budget cycle because the results will help decide whether New Jerseyans get a tax cut and whether Christie’ so-called “Jersey Comeback” is more than a catchphrase.

The State collected $1.9 billion in revenue in July and August, 4.9 percent less than the $2.03 billion Christie projected and less than 1 percent lower than the State collected over the same two-month stretch last year. The lower-than-expected collections included the top two major revenue categories of income and sales taxes, which were off by 3.9 and 6.2 percent, respectively.

Christie is banking on robust growth of about 8.2 percent in revenues in the current $31.7 billion budget to cover increased pension costs, additional educational spending and what he hopes is the first phase of an across-the-board income tax cut. Democrats are delaying a decision on the tax cuts to see if Christie hits his targets.

The latest monthly revenue figures come a day after Standard & Poor’s lowered the State’s credit outlook citing the Governor’s optimistic revenue projections. The agency affirmed the State’s credit rating of AA-, among the worst in the nation, but warned that it could downgrade the rating if the projections fail to materialize. A downgrade could cost taxpayers significantly more money in borrowing costs.

State Treasurer Andrew Sidamon-Eristoff pointed out a few of the highlights in the otherwise lackluster report that he says shows the State is heading in the right direction. He noted that August income tax collections were an all-time high and business taxes beat projections. “Income tax and corporation business taxes are showing welcome strength,” Sidaamon-Eristoff said in a written statement. “Both July and August income tax were strong, and August even beat the pre-recession results of Fiscal 2008.”

NJ Revenues Fall Short For Fiscal 2012

Donald Barbati — Wed, 12 Sep 2012 15:40:37 -0500

As reported by app.com, the New Jersey Legislature’s nonpartisan budget analyst reported Monday that the State’s revenue fell $254 million below projections for fiscal 2012, a number that Governor Chris Christie dismissed.

The figures released Monday by the Office of Legislative Services are not good news for New Jersey, but they are not catastrophic in a state where this year’s overall spending plan is nearly $32 billion. The routine report set off anger from Christie, who has made the OLS and its budget projections some of his favorite targets. “All of this stuff is blatantly political,” he said during an event in Haddonfield.

Christie said the final, official revenue figures for the fiscal year that ended June 30 will be released in December or January and only then will the State have a better sense of where it stands. The Republican governor, who is pushing for tax cuts, has an interest in showing that the State’s economy is on better footing and that the State’s revenues are following. In June, the Democrat-controlled Legislature adopted a budget calling for some tax cuts, but said a final decision on whether to implement them should be delayed until it was clear the State Treasury could afford them.

In Haddonfield, Christie pointed out that last month, an OLS memo reported the shortfall for last year could be as high as $542 million. But David Rosen, the Legislature’s budget expert, cautioned in the August memo that the numbers were preliminary and could be subject to adjustments of $200 to $300 million. His adjustment turned out to be at the high end of that range.

The latest report found income tax collection was about $209 million higher than projected, but corporate tax collections were $287 million below expectations. Most other revenue streams brought in less than expected but by smaller amounts. With the exception of casino and bank financials, every revenue stream brought in more in fiscal 2012 than the previous report found.

Juveniles Entitled To Hearing Before Being Moved To State Prison

Donald Barbati — Wed, 29 Aug 2012 07:10:38 -0500

As reported by nj.com, unruly juveniles housed at any of the state’s facilities for young offenders are entitled to a hearing before they are transferred to a state prison, a state appeals court panel ruled yesterday. Teens under the jurisdiction of the state Juvenile Justice Commission need more than same-day notice of the transfer, the court said.

“The transfer of a juvenile to an adult prison significantly changes the focus of the incarceration away from rehabilitation and toward security and punishment. For those reasons, we conclude that there must be a sufficient level of procedural due process to protect the juvenile’s interests,” Judge Alexander Waugh Jr. wrote for the three-member panel. The decision reverses the November 4, 2011 transfer of a Cumberland County resident, identified fictitiously in the 28-page decision as Jones, to South Woods State Prison in Bridgeton and requires Juvenile Justice Commission staff to give him a hearing for a chance to contest the transfer.

A juvenile when he committed his crimes, Jones was 18 when he was sent first to a JJC facility in Yardville in January 2011 and then to a medium-security facility in Bordentown where he had several disciplinary infractions, including assaulting staff. Without his knowledge, JJC staff decided to transfer him to state prison, as allowed by law. But the court noted he was not notified of the review, the JJC’s recommendation and approval for transfer or the Department of Corrections’ approval to accept him. On the day of the transfer, he was not permitted to call his mother, who was not notified of his relocation for several days. The decision, which also included Judges Mary Catherine Cuff and Marie Lihotz, noted neither his attorney nor the family court judge who sentenced him to up to four years in a juvenile facility was notified.

The state’s Juvenile Justice Code, which took effect in 1983, was intended to involve family more in a juvenile’s case and use discipline not as harsh or rigid as prison for juveniles with less serious offenses.