Anyone involved in governing and administrating a town or county in New Jersey understands the economic problems outlined in The Star-Ledger editorials of February 28 and March 1. The costs of labor, pensions, health benefits and binding arbitration agreements are strangling residents and administrators. Everyone is suffering. We have been addressing these issues in Essex County for more than two years, with limited support, and it is good to hear other governmental entities and public voices, such as the Ledger's editorial board, joining ours. I especially commend Governor Chris Christie, Senate President Steve Sweeney and Assembly Speaker Sheila Oliver for addressing these serious issues, and assure them that we will assist them in every way we can.
The focus, however, should not be "The Cost of Public Workers" as the editorial was titled, but "The Cost of Running Government." Just as the private sector has had to make changes in the way it does business, so do we, as government leaders, have to make changes in how government is run. Taxpayers are equivalents of shareholders, and everyone involved in government – elected officials, union leaders and workers – must understand that the times have changed.
In 2008, we instituted several of the initiatives recently proposed by Governor Christie and passed by the NJ Legislature for our managers and senior staff. Wages have been frozen for two years, prescription co-pays were increased, and contributions to health benefits were implemented at 15 or 20 percent of the benefit cost, according to salary. At the same time, we began negotiations with our unions for similar changes, including a 1.5 percent health benefit cost contribution. At this point, all of our union contracts are due for renegotiation, and we will approach the table with the same proposals, wage freezes and health benefit contributions.
This is not a stand against our 3,500 employees, who work hard every day on behalf of Essex County residents. It is not their fault that we are in today's fiscal situation. They are the recipients of benefits created during a different era. But unless we all work together to modify the system, everyone will feel more pain. Governmental revenues are falling and money from Federal and State coffers are shrinking; there is just not enough money to provide government services in the manner we formerly did, and the public sector wage and benefit packages must be adjusted to meet the new economy. We have no choice.
Binding arbitration is the second hurdle we have challenged here in Essex County. Arbitrated settlements granted to Fire, Police and Educational unions throughout the state have been totally out of synch with those of other wage-earners. In January 2009, I joined with the Town of Closter to speak out against this process, which consistently ignores the economic situation of the governmental entity and issues outrageous benefits and increases, well beyond nationally accepted standards, to these groups. The decisions have been far-fetched enough to be called "arbitrary," not "arbitrated," and the entire system must be eliminated.
Fortunately, eight years of prudent fiscal planning and management has allowed us to introduce a budget without furloughs or layoffs, and with a minimal (2nd lowest in the state) tax increase. However, falling revenues and rising needs now force us to contemplate new approaches. In an effort to maintain the best services for our residents, and minimize the tax burdens, I ask all Essex County municipal officials to vigorously examine shared-service agreements and some form of administrative regionalization. I also call on public employees at all levels, and their union leadership, to come to the table willing to negotiate within the parameters of today's economy. School teachers, fire and police officers, judges and legislators, clerks, public works employees, recreation workers, managers and typists – everyone must become part of the solution. If we work together, we can continue putting our taxpayers first.
Joseph N. DiVincenzo, Jr. is the Essex County Executive
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