O’SCANLON INTRODUCES LEGISLATION TO MAKE SURE ALL PROPERTY TAXPAYERS BENEFIT FROM ARBITRATION CAP

BILL WOULD ENSURE THAT PROPOSED CAP APPLIES TO ALL NEW PUBLIC EMPLOYEE ARBITRATION AWARDS

December 14, 2010 – (RealEstateRama) — Concerned that a significant number of already-expired public employee contracts would not be subject to the proposed two percent cap on arbitration awards to public employee unions, Assemblyman Declan O’Scanlon introduced today a measure clarifying that the cap would apply to contracts that expired before the cap begins on Jan. 1.

“A significant percentage of municipalities and property taxpayers will conceivably see no benefit from the two percent cap until we’re two or three years into the 3.5-year window,” O’Scanlon, R-Monmouth and Mercer said. “I hope the arbitrators who are going to award these contracts pay attention to the current cap laws and to the dire times municipalities and property taxpayers find themselves in and design reasonable, conservative contracts that don’t blow massive holes in municipal budgets.

“If we find this is not the case, this legislation will be there ready to go at a moment’s notice,” O’Scanlon said.

The bill, A-3652, simply extends the benefit of the proposed arbitration cap to the many contracts that are already expired and would not technically have to comply under the cap that was approved Monday by the General Assembly.