Tough medicine: Gov. Chris Christie's proposed cap on public worker costs is a must
By Star-Ledger Editorial Board/The Star-Led...
March 21, 2010, 5:30AM
Governor Chris Christie delivers his budget address in the Assembly Chamber March 16, 2010In the long run, the most important move Gov. Chris Christie has made to shrink government is not his cuts to mass transit, or higher education, or even the public schools.
It is his plan to impose a cap of 2.5 percent on annual increases in labor costs and property taxes. That would bend the cost curve for local government in New Jersey for years to come. It offers taxpayers a chance to gain control over a collective bargaining process that has gone off the rails.
Take a hard look at the problem. New Jersey has the nation’s highest paid police officers and firefighters, and our teachers are close behind. They earn significantly more than the typical taxpayer. And most of them are getting healthy raises this year, despite the crushing recession.
Benefits are even more out of whack. It’s not unusual for senior police officers to retire with a cash payment of $100,000 or even $200,000 for unused sick and vacation time, along with a lifetime pension equal to 70 percent of their highest salary. Teachers, coddled by tenure protection for most of their careers, get Cadillac health care plans for life, usually without paying a penny on premiums.
This is plainly not sustainable. Most of these costs are paid for with