Newsletter

Chris Christie with Craig Smith (left), Scott Derby (2nd left), and Craig Stellman (right)

“[S]peaking the truth, and acting the truth when spoken. Now, there are two sides to that. It is a very bad thing — a very bad thing — for a public man not to perform what he has promised. A man who lies on the stump will lie off the stump, and a promise made in public life should be held as binding on every honest man as a promise made in private life. The other side is that the people must remember that they themselves will be to blame if they ask a promise which, from the nature of things, can not be kept.”

On February 25, 2009, Association President Scott Derby and Executive Vice President Joseph Sooy, along with the leadership of the other state law enforcement unions, including those representing state troopers, attended a meeting with the State Treasurer and the Governor’s Director of Employee Relations. The State Treasurer spoke about the budget deficit for the current fiscal year (which ends June 30, 2009) and the one for the coming fiscal year (which starts July 1, 2009). The budget deficit for the current fiscal year, according to the State Treasurer, is estimated to be between $1 and $2 billion dollars; even worse, the budget deficit for the coming fiscal year could be as much as $7 billion [sic]. Both the State Treasurer and the Governor’s Director of Employee Relations advocated unpaid furlough days for all state employees, whereas union officials representing the state law enforcement community contended that unpaid furlough days imposed on 24-7 law enforcement operations, whether exacted on the State Police or in the state prison system, would incur overtime, not cut costs. They added that unpaid furlough days could jeopardize public safety, expose law enforcement officers to additional risk, and undermine security in the state prison system.

As a result, all uniformed law enforcement officers in the New Jersey Department of Corrections and Division of State Police were declared exempt from the unilateral, unpaid furloughs.

Subsequently, on May 1, 2009, the Association learned of a very encouraging development; for it was on that date that the Association received confirmation that Captains at the Juvenile Justice Commission (JJC), under the New Jersey Department of Law & Public Safety/Office of the Attorney General, had been declared exempt from the furloughs. On May 11, 2009, Association President Scott Derby participated in a teleconference with the Governor’s Director of Employee Relations. On May 13, 2009, Association President Scott Derby received confirmation from the Attorney General’s Office that Chief Craig Stellman, the sole remaining Director of Custody Operations at the JJC, had also been declared exempt.

Notwithstanding, of the six (6) Supervising Parole Officers, four (4) still remained subject to the furloughs.

On May 4 and 5, 2009, respectively, Association President Scott Derby filed and amended an unfair-labor-practice charge (ULP) with the New Jersey Public Employment Relations Commission (PERC) against the Governor’s Office of Employee Relations to address the latest developments.

Thus, the exclusive ranks of the exempt now included all uniformed law enforcement personnel employed by the New Jersey Department of Corrections and Department of Law & Public Safety (state troopers and juvenile correction officers of all ranks). The exemption status would be temporarily extended to investigators, civilian communication operators, and on-call administrators.

On May 19, 2009, PERC denied unions’ respective petitions for interim, or injunctive, relief. On that same date, Association President Scott Derby submitted the grievance filed on behalf of furloughed Supervising Parole Officers for elevation to Step 3 (arbitration). In correspondence dated June 5, 2009, the Governor’s Office of Employee Relations notified Association legal counsel Mario A. Iavicoli, Esq., of its intention to file litigation against the Association at PERC seeking to restrain arbitration.

The unpaid furlough day scheduled for the month of June 2009 was cancelled, and the unions representing civilian state employees agreed to renegotiate their respective collective bargaining agreements with the Governor’s Office. The ratified memoranda of agreement called for ten (10) self-directed unpaid furlough days. As a result, civilian communication operators became subject to unpaid furloughs.

Subsequently, the Governor’s Office disclosed to the Association that it was considering whether or not the Chiefs (DOCOs) in both the New Jersey Department of Corrections and JJC should be subjected to unpaid, involuntary furloughs like all the other nonunion managers of state employees (e.g., Commissioner, Chief of Staff, Deputy Commissioner, Assistant Commissioner, Directors, Administrators, Associate Administrators, and Assistant Superintendents). That disclosure took place after Chief Craig Stellman of the JJC had been told by his Deputy Executive Director that he would indeed be furloughed. On August 4, 2009, the Governor’s Office informed the Association that on the following day (August 5, 2009), the New Jersey Civil Service Commission would be repealing N.J.A.C. 4A:8-1.1A in accordance with several recently ratified memoranda of agreement between the Governor’s Office and the unions representing civilian state employees, while establishing a pilot program authorizing unpaid, involuntary furloughs for nonunion state employees, such as the Chiefs. On August 6, 2009, the Governor’s Office informed the Association that it had determined that the Chiefs fell into that category and therefore would be furloughed. On August 7, 2009, the Association learned of an encouraging yet unconfirmed development that might spare the Chiefs; and on August 10, 2009, the State decided not to furlough the Chiefs, ostensibly lest it face the prospect of another unfair-labor-practice charge (ULP) being filed by the Association on behalf of the Chiefs.

Accordingly, it is the Association’s understanding that all state law enforcement officers are currently exempt from involuntary, unpaid furloughs.

On January 7, 2010, an exploratory conference will be convened at PERC concerning the ULP charge filed by the Association on behalf of furloughed Supervising Parole Officers.

The presiding arbitrator in the arbitration of the grievance filed on behalf of furloughed Supervising Parole Officers attempted to schedule arbitration proceedings for April 20, 2010. However, the Governor’s Office objected, pretextually for dates in June 2010.

Philadelphia Inquirer

June 30, 2009

Gov. Corzine signed a $29 billion budget yesterday that he said managed the national recession by cutting spending but still making “the right choices” to preserve programs for education, the poor, and the elderly. The plan relies on about $1.2 billion in new taxes, mostly on tax filers earning $400,000 or more, and scales back property-tax rebates. But Corzine said average New Jerseyans were protected. “Given the economic context in which we live, and were forced to develop this budget, we have much to be proud of,” Corzine said. He said New Jersey was in a much better fiscal position than states such as California, Ohio, and Michigan. Corzine said a tax amnesty this year brought in $725 million, beating its $200 million target. The money, and any new revenues that come in during the year, will go to property-tax relief, Corzine said. The budget also counts on $325 million in wage freezes and furloughs from a plan that labor unions have yet to formally agree to. The largest employee union, the Communications Workers of America, is scheduled to complete voting on the deal this week. Other unions, however, have yet to agree to the same conditions. The budget that begins tomorrow is $4 billion smaller than the spending plan Corzine signed last June. But the $29 billion bottom line doesn’t count $2.2 billion in federal stimulus aid that is supporting key line items, mostly school funding and Medicaid, off the books. And the biggest spending cut is a $940 million reduction in pension payments, which will have to be made up later. Republicans said the budget pushed billions of dollars of costs into the future. “Make no mistake: This budget is Jon Corzine’s election-year Hail Mary pass,” said Sen. Steven Oroho (R., Sussex). About $900 million in tax increases are from income-tax rate hikes affecting 61,300 filers. Tax filers earning $150,000 or more will see their property-tax deduction reduced or eliminated. Taxes will rise on cigarettes, some insurers, lottery winnings larger than $10,000, and alcohol, except beer.

by Katie Benner
CNNMoney.com/Fortune Magazine

May 12, 2009

For years, states all across the country have been starving their retirement plans. Here’s a look at how the crisis is playing out in New Jersey, where the bill is coming due, and the state doesn’t have the money to pay it. Even as the nation’s economy is showing some tentative signs of bottoming out, another calamity looms: the public pension bomb. For years, states nationwide have shortchanged the retirement programs that cover teachers, police, and other public employees; now the stock market plunge has wiped out billions of dollars from already underfunded plans. California, New York and Illinois are among the states scrambling to plug multibillion-dollar holes in their pension systems. The growing obligations raise the specter of higher taxes, diminished services, or even another round of costly federal bailouts. “States have long needed to reduce their unfunded liabilities, and widespread investment losses have made it even more necessary to put money in,” says Lance Weiss, author of a 2006 Deloitte study of state pensions. “But the market crash also means there’s less money available to use for contributions. Everything is coming together to create a crisis.” To better understand this ticking time bomb it helps to focus on a single state, and New Jersey makes a compelling case study. For one thing, its situation is dire. In June 2008 the state estimated that the plan — one of the nation’s largest, covering teachers, state employees, firefighters, and police — had $34 billion less than it needed to meet its obligations. Since then the market value of the plan has dropped from $82 billion to $56 billion (a new estimate of underfunding is due in July). Also, New Jersey is in some ways ahead of the pack in trying to deal with the crisis — Gov. Jon Corzine, a Democrat, made addressing the problem a central theme of his 2005 campaign — and the obstacles it is encountering shed light on the hard choices facing other states. “The pension obligations could spark a huge problem for New Jersey,” says Thomas Kean, a former Republican governor. “They must be paid because they are absolutely an obligation of the state, but as it is, the budget is balanced with chewing gum and sealing wax.” To figure out how such a wealthy state (with a median household income of $65,933, New Jersey ranks No. 1) dug itself into this hole, set the clock back almost 20 years. In 1990 the country was hit by a recession, and the new Democratic governor, James Florio, responded with a wildly unpopular $2.8 billion income and sales tax increase to balance the budget. Two years later, facing another budget shortfall, he turned to the state pension system for help. With almost unanimous support in the legislature, he pushed through the Pension Revaluation Act of 1992. We’ll spare you the minutiae of pension accounting and just say that the law permitted the state to recognize investment gains in the fund more quickly than under previous rules. It also lifted the projected rate of return on the fund’s investments to 8.75% from 7% (since lowered to 8.25%). These “adjustments” had a big impact: According to an official Benefits Review Task Force report published in 2005, they allowed the state to cut its pension contributions by more than $1.5 billion in 1992 and 1993. Republican Christine Todd Whitman, running on a tax-cutting platform, defeated Florio in the 1993 governor’s race. To help pay for her promised tax cuts, Whitman, like her predecessor, turned to the pension fund. In 1994, at her urging, the legislature adopted another pension “reform” act that allowed her to reduce state and local contributions to the plan by nearly $1.5 billion in 1994 and 1995, according to the task force report. Florio’s and Whitman’s accounting changes were “the one-two punch from which the retirement system has never recovered,” says Douglas Forrester, who was the assistant state treasurer under Kean. Seeking to make up lost ground without putting up more money, the state’s leaders looked to the magic of the stock market. In 1997 New Jersey sold $2.75 billion of bonds paying 7.6% interest, putting the proceeds into the pension fund to be invested for higher returns. At that time Whitman said the ironically named Pension Security Plan would save taxpayers about $45 billion. It hasn’t worked out that way. The fund has earned less than 6% annually since the bonds were issued. “This is classically referred to as arbitrage,” says U.S. Rep. Leonard Lance, a Republican who served in the New Jersey legislature from 1991 through 2008. “It’s a questionable strategy in the private sector, and it’s certainly not acceptable as a matter of public policy.” That wasn’t the state’s last venture into high finance. The system, along with almost every other investor, suffered sharp losses after the dotcom bust of 2001. Democrat James McGreevey, who became governor in 2002, hoped that professional money managers would improve the plan’s returns. At the time New Jersey was the only state other than Texas to run its pension fund without outside help. McGreevey appointed Orin Kramer, a money manager who had been finance chair of his unsuccessful 1997 gubernatorial campaign, as head of the State Investment Council, which sets policy for the pension plan. Kramer pushed the council to turn over some of the fund’s assets to Wall Street professionals and to diversify into alternative investments such as hedge funds and private equity. But it took time for Kramer to devise a strategy and put it into action, so money didn’t flow to alternative investments until 2006, on the eve of the bear market that would crush nearly all asset categories. “Our asset-allocation model was based on the idea that there was no correlation between our alternatives and bonds and equities,” says James Marketti, retired president of Communications Workers of America Local 1032, who has been a member of the state’s investment council since September 2008. “It turns out they were perfectly correlated.” For all the miscues, New Jersey’s pension woes can’t be blamed on particularly poor investment results. An examination of state reports shows that the fund’s returns have more or less tracked the broad stock market’s. The real problem has been the underfunding. Meanwhile, the obligations keep mounting: Even while they were neglecting pension contributions, New Jersey politicians were sweetening the pot. In 2001 benefits for the state’s two largest groups of workers, government employees and teachers, were increased by 9%, creating an additional $4.2 billion in liabilities. In 1999 the state approved a “20 and out” measure that allowed firefighters and local police to collect pensions equal to 50% of their pay after 20 years of service — a perk previously available only to the state police. Benefits added since 1999 have increased liabilities by more than $6.8 billion, according to official estimates. Today New Jersey seems locked in a downward spiral. “New Jersey and many other systems have negative cash flows, meaning that contributions are less than the benefits we pay out,” says William Clark, director of the New Jersey Division of Investment, which manages the pension fund. “You can’t make your money back when it’s flowing out of the system.”

For several hours in late October 2008, Association President Scott Derby, along with officials from the other state law enforcement unions, met with the New Jersey State Commission of Investigation (SCI).

Special thanks go out to the NJSOA (state lieutenants’ union) for having facilitated the meeting.

On November 18, 2008, the SCI held a public hearing concerning the impact of violent criminal street gangs on New Jersey’s state prison system. The hearing was held in Room 11 on the 4th floor of the State House Annex.

In early March 2009, representatives from the state law enforcement unions met again with the SCI. The Association was represented by Association President Scott Derby and Executive Vice President Joseph Sooy.

On May 19, 2009, the SCI published its report: click HERE to read the press release; click HERE to read the report.

Established in 1968 as an independent agency funded directly by the New Jersey State Legislature, the SCI conducts fact-finding probes, often targeting wasteful and abusive governmental practices, and makes the results public even if no criminal prosecution is contemplated. The SCI is required by law to pursue these investigations beyond the sphere of political influence or favoritism and is required to make its findings public through written reports and/or public hearings. The SCI was created in 1968 amid an intensifying problem involving organized crime and political corruption. Extensive inquiry by a special Joint Legislative Committee to Study Crime and the System of Criminal Justice in New Jersey confirmed a crisis in those areas and issued sweeping recommendations to improve key areas of the state’s criminal justice apparatus. The most significant recommendations resulted in the creation of a state-level Division of Criminal Justice under the control of the Attorney General, and the establishment of an independent Commission of Investigation. The Division was empowered to conduct and supervise criminal investigations and prosecutions. The SCI, meanwhile, was designed to conduct fact-finding investigations, bring the facts to the public’s attention, refer findings to appropriate law enforcement agencies for possible prosecution and make recommendations to the Governor and the Legislature for improvements in laws and in the operations of government.

Commission Grants Corzine Authority to Order State Worker Furloughs
Posted April 1, 2009

by Chris Megerian
The Star-Ledger

March 25, 2009

Four union members were arrested while protesting a meeting of New Jersey’s Civil Service Commission, which today granted the Corzine administration the ability to furlough state workers by passing an emergency rule. Tensions have been simmering on the issue, which has pitted Gov. Jon Corzine against union leaders in a tug of war over workers’ rights and budget constraints. “The right thing to do is to avoid putting thousands of people onto the unemployment rolls but instead keeping them on the job, even if it means mandatory, unpaid time off,” he said in a statement. “I concur with the finding by the Civil Service Commission that an emergency exists, requiring that the furlough rule be adopted immediately.” Corzine has called on public employees to give up their negotiated pay raise of 3.5 percent and take one furlough day a month beginning in July. The governor has threatened to lay off up to 7,000 state workers unless he can save $500 million through wage concessions from state worker unions. Some 500 union members chanting “No furloughs” gathered outside the meeting in Trenton to protest, said Hetty Rosenstein, state director for the Communication Workers of America. “It’s historic in its outrageousness,” she said. “Our worst union busters haven’t tried to do this.” Rosenstein said the union was given less than two days’ notice about the meeting. Two union members attempted to speak at the meeting — identified by Rosenstein as Ken McNamara, president of Local 1037, and Patrick Kavanagh, president of Local 1032 — and were arrested by state police. Two more unidentified people were also arrested. State Police Superintendent Rick Fuentes said they were escorted from the room and are being processed by the State Governmental Security Bureau.

On June 30, 2008, Governor Corzine signed into law Assembly Bill 2803 (A2803)/Senate Bill 1979 (S1979).

The newly enacted legislation — now Public Law 2008, chapter 29 (P.L. 2008, c. 29) — will establish a new Civil Service Commission in, but not of, the New Jersey Department of Labor and Workforce Development to assume the functions, powers and duties of the current Merit System Board and Commissioner of the New Jersey Department of Personnel. The New Jersey Department of Personnel will be abolished and most of its functions, transferred to the newly established Civil Service Commission. However, its planning and research functions, as well as its Division of Equal Employment Opportunity and Affirmative Action and the Equal Employment Opportunity Advisory Commission, will be transferred to the New Jersey Department of the Treasury; and the Working Well state employee wellness program and the toll-free Law Enforcement Officer Crisis Intervention Services telephone hotline will be transferred to the New Jersey Department of Health and Senior Services.

P.L. 2008, c. 29, also amends current state law to give the Civil Service Commission the authority to develop a plan for the consolidation and coordination of personnel and related functions, including, but not limited to, classification, compensation, and workforce planning, in the executive branch of state government and for transfer to the Civil Service Commission such employees, positions, funding, facilities, equipment, powers, and duties from throughout the executive branch as necessary and appropriate to effectuate such consolidation and coordination. The new law provides the State Treasurer with the responsibility and authority to develop programs to improve efficiency and effectiveness of the public service, including, but not limited to, employee training, development, assistance and incentives, establish an internship program, and assist the Governor in general work force planning, personnel matters, and labor relations.

Critics contend that the new law will empower the State Treasurer to issue final decisions on disputes regarding classification, examinations, salary issues, promotions, appointments, and layoffs, as well as to delegate responsibilities to local appointing authorities to reclassify positions and administer civil-service exams and that the State Treasurer will have final authority to establish, consolidate, and abolish titles in state service, as well as to assign and reassign titles to the competitive and noncompetitive categories. Critics believe that an independent agency will no longer be responsible for determining minimum qualifications for promotions, administering civil-service exams, or deciding disputes over exams, appointments or promotions.

P.L. 2008, c. 29, will also create a temporary Civil Service Reform Task Force within the New Jersey Department of the Treasury — which will study, evaluate, and develop recommendations for reform, and report its findings regarding the current civil-service system to the Governor, the Civil Service Commission, and the state legislature within one (1) year following its organizational meeting.

The New Jersey Department of Environmental Protection (DEP) is home to two (2) law enforcement agencies — State Park Police and the New Jersey Division of Fish & Wildlife’s Bureau of Law Enforcement.

On September 3, 2009, Association President Scott Derby participated in a labor management meeting with the DEP to discuss filling a vacancy in the title Supervising Conservation Officer.

A labor management meeting with the DEP had been scheduled for June 3, 2009, in pertinent part to discuss the issue of “permanent” layoffs; but the meeting was abruptly cancelled by the DEP on June 1, 2009. The meeting was ultimately held on June 24, 2009, and no “permanent” layoffs resulted.

On March 5, 2009, the DEP hosted a meeting with the Association, as well as with other unions representing state employees at the DEP. The DEP disclosed that despite the State’s fiscal crisis, it would acquire a new telecommunications system through federal Homeland Security grants and had re-commissioned former State Police vehicles to augment its current fleet. On the other hand, the DEP was not prepared to answer any questions concerning whether or how the Governor’s proposed unpaid furlough plan would adversely affect its law enforcement operations. The Association was represented at the meeting by President Scott Derby and Executive Vice President Joseph Sooy.

On December 4, 2008, the DEP hosted a meeting with the Association, as well as with other unions representing state employees at the DEP. Association President Scott Derby represented the membership, and the critical issues of filling vacancies in supervisory law enforcement titles and the acquisition of a new telecommunications system and patrol cars were discussed amidst a briefing of historically austere budgetary conditions.

On December 1, 2008, then-DEP Commissioner Lisa Jackson became the Governor’s Chief of Staff. Meanwhile, President-elect Barack Obama appointed her to serve as co-chair of his transition team on energy and natural resources, then nominated her to head the U.S. Environmental Protection Agency (EPA). She is now the Administrator of the EPA.

If you may recall, it was on April 1 and 8, 2008, that Association President Scott Derby and Executive Vice President Joseph Sooy attended meetings with DEP officials to discuss the State of New Jersey’s proposed budget for fiscal year 2008-2009 and the DEP’s reduction-in-force (RIF) plan. The DEP was represented by its Chief of Staff, Director of Operations, RIF coordinator, and Director of Budget & Finance. Layoff notices were scheduled to go out May 6, 2008. Though several existing vacancies in law enforcement titles would be eliminated and overtime, curtailed, those presently serving in those titles were not expected to be among the layoffs at that time. On May 7, 2008, Association Vice President Matthew Kyle attended a meeting with the same DEP officials where it was again confirmed that there would be no layoffs in law enforcement titles.

The Association’s next meeting with the Commissioner of the New Jersey Department of Corrections and his senior executive staff has been rescheduled for October 19, 2009. Any member with a question, concern or issue he or she would like for the Association to discuss at the meeting should contact Association President Scott Derby at (609) 774-3941 or at Scott.Derby@commandingofficersnj.org.

The Association’s last meeting with the Commissioner and his senior executive staff took place on May 12, 2009.

On December 19, 2008, the Association’s Executive Board met with the Commissioner of the New Jersey Department of Corrections and his senior executive staff. Members with questions or concerns were encouraged to contact Association President Scott Derby. Among the issues discussed were training and career-development opportunities, compensatory time, Captains’ access to intelligence information, and an equitable salary formula for Captains. The Chief of Staff confirmed that a training curriculum had been established for Captains and that the training was scheduled for February 2, 3, and 4, 2009, at the Department’s training academy at Sea Girt, NJ. The Director of the Department’s Office of Employee Relations agreed to address the issue of compensatory time. The Commissioner and the Director of the Department’s Office of Human Resources would look into the issue of an equitable salary formula for Captains. Both the Deputy Commissioner and the Chief of Staff would address the issue of access by Captains to intelligence information.

On September 23, 2008, Association President Scott Derby, Executive Vice President Joseph Sooy, and Vice President Matthew Kyle met with the Commissioner of the New Jersey Department of Corrections and his senior executive staff to discuss the following issues:

First, Director Victoria Kuhn of the Department’s Equal Employment Division (EED) contended that false complaints are investigated and, if substantiated, referred to the Department’s Office of Employee Relations for possible disciplinary action.

Second, Chief of Staff Thomas Moran stated that the Department was looking to provide annual training and other training opportunities to Captains. Indeed, Association President Derby, Executive VP Sooy, and VP Kyle toured the Department’s Academy at Sea Girt on September 26, 2008, with Academy Director John Cunningham and participated in a meeting there to help develop a training curriculum for Captains.

Since then, the issue of compensatory time has been resolved: whenever a Captain is required to serve beyond his/her tour of duty, he/she will be afforded compensatory time equal to the time served beyond his/her tour of duty; the use of flex time for Captains is not authorized under the Association’s current collective bargaining agreement with the State of New Jersey.

The Association has recently learned that intelligence information will be limited to Administrators, Chiefs, and Administrative Captains. Nevertheless, the Association will continue to work on this important issue because any Captain can be called upon, given not-so-unusual circumstances, to serve as the Chief or the Administrative Captain.

Any member who had questions or concerns which he or she felt should be raised at the meeting was encouraged to contact Association President Scott Derby at (609) 774-3941 or at Scott.Derby@commandingofficersnj.org.

ATTACHED for your review and edification is a memorandum dated December 15, 2008, from Wendy Jamison, Secretary to the Board of Trustees for the New Jersey Police and Firemen’s Retirement System (PFRS) concerning recently adopted amendments to the New Jersey Administrative Code (N.J.A.C.) by the PFRS Board of Trustees to address “training requirements” for police officers and firefighters. According to the ATTACHED memorandum, the amendments “may also affect the eligibility of some current members of the PFRS.” Those current PFRS members who do not meet the new “training requirements” would have eighteen (18) months after the amendments’ final adoption to come into compliance. In other words, “As of July 1, 2010, all PFRS members must be fully trained with PTC or Firefighter 1 certification in order to remain in PFRS membership. Any PFRS members without the required certification will face removal from PFRS membership.”

Notwithstanding, the issue generated by the controversial memorandum is believed to have been amicably resolved. On January 22, 2009, Association President Scott Derby spoke with the Director of the New Jersey Department of Corrections Training Academy, at Sea Girt, who also serves as one of only several voting members on the New Jersey Police Training Commission (PTC). He, having consulted with the Chairman of the PTC, informed President Derby that all state correction officers, regardless of rank, currently employed by the New Jersey Department of Corrections were PTC-certified, thus having met all the requirements of the Police Training Act (N.J.S.A. 52:17B-66, et seq.).

In addition, President Derby subsequently spoke with Wendy Jamison, author of the controversial memorandum, on January 23, 2009, and she informed President Derby that the new training requirements cited in her memorandum were never intended to target current state parole or correction officers, adding that she regretted whatever confusion or concern her memorandum may have caused. She disclosed that she had fielded a myriad of inquiries from other state and county law enforcement officers, including investigators, detectives, sheriff’s officers, etc., and the unions that represent them, all concerned about the new training requirements. She explained that the new training requirements were, instead, promulgated to address certain public employers who were not providing their firefighters or law enforcement officers with the required training within the prescribed time parameters.

Members with remaining questions or concerns are advised to contact President Derby at (609) 774-3941 or at Scott.Derby@commandingofficersnj.org.

On November 25, 2008, State officials convened a meeting with the Association’s Executive Board and representatives from the other unions representing state employees at Riverfront State Prison, custody and civilian alike; and the following was disclosed during the course of the meeting:

Notwithstanding, the state law enforcement unions have also agreed to work together concerning this important issue; and Association President Scott Derby and Executive Vice President Joseph Sooy, accompanied by representatives from the NJLESA (state sergeants’ union) and the NJSOA (state lieutenants’ union), met with employees and administration officials at Riverfront State Prison on December 2, 2008.

Our joint union public-awareness campaign aimed at stopping the closing of Riverfront State Prison has commenced in earnest on all NJ TRANSIT buses and rail service.

Our ATTACHED joint union public-awareness flyer will be distributed at area shopping centers. Volunteers are needed to help with this. If interested in helping, please contact Association President Scott Derby at (609) 774-3941 and/or at Scott.Derby@commandingofficersnj.org or Executive Vice President Joseph Sooy at (609) 774-0777 and/or at Joseph.Sooy@commandingofficersnj.org.

The Governor’s Office and the New Jersey Department of Corrections have now both confirmed that Riverfront State Prison will close on or before June 30, 2009.

On February 19, 2009, Association President Scott Derby, along with union officials from PBA Local 105, NJLESA (state sergeants’ union) and the NJSOA (state lieutenants’ union), spoke before the Camden County Board of Freeholders in Lawnside, NJ. Accompanying President Derby were Executive Vice President Joseph Sooy and Secretary Kelly Gibson.

It is the Association’s understanding that the NJLESA (state sergeants’ union) has recently filed for an injunction in state Superior Court.

Stay tuned to this website for more details on our joint union efforts to stop the closing of Riverfront State Prison.

It has come to the attention of the Association that SLI, etc., is tax-exempt. For further details, please click HERE.

Corzine Delays State Budget Introduction until March
Posted January 2, 2009

by Claire Heininger
The Star-Ledger

December 30, 2008

Gov. Jon Corzine will push back the introduction of his next state budget until March 10 so it can take into account help from President-elect Barack Obama’s federal stimulus package, officials said today. State Treasurer David Rousseau said the move is also needed because treasury officials are running four to six weeks behind schedule trying to plug a $1.2 billion hole in the current budget. Governors typically introduce budgets in mid-February. The change, which must be approved by the Legislature, would not affect the constitutional deadline of June 30 for lawmakers to approve the budget. Senate President Richard Codey (D-Essex) said he supports the delay, calling the stimulus package a “huge” factor in what budget cuts New Jersey will have to make. Corzine has said declining tax revenues amid the national recession could push next year's budget as low as $29 billion, down from $32.9 billion this year. “I think it's the right thing to do to delay the introduction of the budget until we know what that stimulus package contains for the state of New Jersey,” Codey said. The stimulus package worth hundreds of billions being designed by Congressional leaders and Obama advisers is expected to include help for the states with Medicaid funding and infrastructure projects, among other steps. The Medicaid piece would be the biggest item affecting New Jersey's budget, Rousseau said, though he declined to specify how much money the state expects. In New York, Sen. Charles Schumer has said the economic stimulus plan could include $5 billion in direct Medicaid funding to that state. Relief could come in other budget areas, but the specifics remain unclear, the treasurer said. “We don't know what they are. We don't know what strings will be attached,” Rousseau said. “That's why we need to get a clearer picture.” The introduction of the budget has been delayed before, typically during a new governor's first year in office. “It's not unprecedented, but what's unprecedented right now is we're dealing with a large problem in the current year,” Rousseau said.

On December 11, 2008, the Association hosted its annual holiday party at Morton’s Steakhouse (Caesars Hotel & Casino) in Atlantic City, NJ. The party was open and free to all members in good standing and their guests. From all accounts, everyone was festive and in the holiday spirit. Association general counsel Mario A. Iavicoli, Esq., was honored for his two decades of service to the Association and its membership, and Association President Scott Derby presided over the brief ceremony in which Mario was recognized for all that he has done and continues to do to secure and advance our collective interests. Mario was presented with an award plaque, as well as a gift basket for him and his wife, and was granted honorary life membership in the Association.

It was only fitting that while we came together for the holiday season to reflect on the past with an eye on the future that we should honor Mario, who has meant so much to the Association and its membership for the last two decades. It was Mario who in 1989 fought the State of New Jersey to unionize the Captains in the New Jersey Department of Corrections (DOC), Division of Parole, Juvenile Justice Commission (JJC), and Department of Environmental Protection (DEP); and it is Mario who has stood beside the Association ever since in contract negotiations and in providing to our many members over the last twenty years second-to-none legal representation. In fact, thanks to Mario, all active and associate members of the Association, including the Chiefs, are covered under his comprehensive legal defense plan with the Association. Ironically, nearly twenty years later, Mario is taking on the State of New Jersey once again, this time to unionize the Chiefs in the DOC and JJC. After all these years, it is difficult to imagine that there was a time in New Jersey when Captains did not receive the same salary raises, health benefits, clothing allowances, and rights as their subordinates. Mario has been a source of inspiration to us all and has enriched the lives of those who have had the privilege of knowing him. This year’s holiday party provided an opportunity, not just to mark the Association’s 20th anniversary, but to honor an individual without whom there would be no union for us today.

Gov. Corzine Grappling with Grim Prospects for N.J. Budget
Posted November 19, 2008

by Ted Sherman and Dunstan McNichol
The Star-Ledger

November 16, 2008

New Jersey officials are considering the postponement of raises for 51,000 state employees, as well as layoffs, elimination of tax rebates next year and other tough measures as they struggle to keep the state solvent amid a worsening economic storm. While no decisions have been made, Gov. Jon Corzine said there have been preliminary discussions about the same sort of sacrifices other states are already making, in the face of a $1.2 billion budget deficit that continues to grow. “We will be mindful certainly of public safety and the most vulnerable. But we have to get to the end result of revenues and expenditures being balanced,” Corzine said. Economists, legislators and budget analysts looking at the country’s deepening economic crisis say the shortfall in tax revenues has left many states, including New Jersey, desperately searching for added revenue and savings. With red ink flowing from California to Florida, everything is being considered — even cuts in safety nets to the young and poor. In New York, which needs to find $5.2 billion in cuts, Gov. David A. Paterson is proposing major reductions in state aid to schools for the first time in a decade, while sharply reducing Medicaid reimbursements. He also wants to reopen previously negotiated contracts with labor unions. Connecticut Gov. M. Jodi Rell says her state’s projected budget deficit will reach more than $2.6 billion by fiscal year 2010 and almost $3.3 billion the next year. She will not introduce her budget until February, but has already implemented a hiring freeze and banned out-of-state travel. New Jersey, after years of borrowing and living on the edge financially, may be one of the states least able to weather the tough times, legislators and other experts say. Like New York and Connecticut, the state’s economy and its tax revenues are more directly tied to the woes of Wall Street, which employs so many residents who are now facing layoffs as the financial markets cut back. “We are facing a new reality,” said Assemblyman John S. Wisniewski (D-Middlesex), chairman of the Transportation and Public Works Committee and a member of the Appropriations Committee. “In retrospect, we all should have seen this coming. We existed as a state by relying too much on debt with the rational there would always be revenue.” Corzine still has some breathing space in the current fiscal year. According to information the state provided to Moody’s Investors Service, the governor plans to save $100 million to $150 million by eliminating equipment purchases and discretionary grants, and is counting on $625 million more in savings from mandated 5 percent spending reductions. State Treasury officials said there is also $200 million in unspent funds from last year and another $200 million in fiscal year 2008 tax receipts. Corzine was hesitant to make detailed predictions about what cuts might need to be made. “We won’t say that no department can be touched, but there are certain things that have priority,” Corzine said. “It’s very hard to deal with the education dollars.” In a private briefing with union leaders, he raised the possibility he’ll cancel or postpone the raise owed to state workers next year, according to those who attended. Other state budget officials privately confirmed that is one of many options being explored. The governor on Friday would not address the pay raise question, saying only, “We had wide-ranging discussions.” Union leaders are adamantly opposed to canceling the raise or laying off workers. They also raise concerns over cutting any contribution to the pension fund. Bob Master, a lobbyist for the Communications Workers of America, the largest state employee union, said unions view a higher-income tax hike as a way to essentially force a trickle-down, by getting wealthy people to send their money to Trenton, where it can go to work on infrastructure projects or other stimuli. As he deals with the budget fallout, Corzine will be restricted in part by his own leash. When he signed this year’s budget in June, he also signed an executive order requiring future budgets to match spending to recurring revenues, saying it would force the state to spend within its means rather than relying on one-shot gimmicks. He had called for lawmakers to enact legislation setting that requirement, but no such law was passed. Corzine said the executive order will be in place while he is governor, “and the budget we propose will reflect that,” and it will bind future governors unless they rescind it. The Center on Budget and Policy Priorities says the revenue problems facing state governments throughout the country are only getting worse. In a report last week, the Washington-based, nonpartisan research organization, said 41 states are facing serious budget shortfalls. More than half had already cut spending, used reserves or raised revenues for the current fiscal year, which started July 1 in most states, and at least 31 states — from New Jersey and New York to California and Utah — are now staring at midyear gaps of $24.3 billion nationwide. Arturo Perez, a fiscal analyst at the National Conference of State Legislatures in Denver, said it remains a developing story. “Nationally, nobody really knows what will happen,” he said. “Economists and legislative budget offices are all carefully monitoring revenue collections, which have shown slower or negative growth relative to the estimates that budgets were based on.” So far, most of the actions being taken across the country have been pre-emptive strikes by governors in advance of the convening of the new legislatures. Perez said he expects the floodgates of possibilities to open once budget negotiations actually get under way. “That’s when it will be determined how deep the problems are,” he said. “And the deeper the problems, the deeper you have to dig into your bag of options.”

by Claire Heininger and Dunstan McNichol
The Star-Ledger

November 13, 2008

New Jersey’s state budget shortfall has tripled to a staggering $1.2 billion because of the nation’s economic woes, and it could soar to $5 billion for the next fiscal year, administration officials said today. After a dreadful October that saw tax revenue dive to $211 million less than the Corzine administration’s projections, the state is bracing for more pain in the coming months. “I don’t think many people think the national economy is turning, so we’ve got some more tough waters ahead,” Gov. Jon Corzine said during a briefing. Gov. Jon Corzine addresses a joint session of the Legislature last month. The governor grimly tallied the steps the state will take to compensate: Renegotiate vendor contracts. Delay capital expenditures. Find $600 million in cuts to departments. And that is only for this year. For the fiscal year starting in July, Corzine said: “All things are on the table.” In a speech to the Legislature last month pushing for an economic stimulus package, Corzine projected this year’s shortfall at $400 million. Even with that becoming three times higher, Corzine said he would “absolutely not” ask legislators to scale back his stimulus initiative, which includes emergency aid for food banks and heating assistance programs, as well as long-term reforms to the state’s business climate. “Everything that we talked about in the stimulus program I think is more important today than it was before,” Corzine said. Several bills to enact the plan will be considered today by the Senate Budget and Appropriations Committee. Chairwoman Sen. Barbara Buono (D-Middlesex) said lawmakers must move forward, even as they “go over the budget line by line and identify cuts.” “We needed to plan for the worst, and that’s what’s going on,” Buono said. “One thing is for certain: Everyone is going to be caught in the decline of this economic maelstrom. I think the national economy and Wall Street seems to be in free fall. This is a reflection of that.” Leaders of both parties echoed the need to dig deeper into state spending. “It’s very important to see where we can responsibly find savings — and be very aggressive,” said Senate Minority Leader Tom Kean Jr. (R-Union). Senate President Richard Codey (D-Essex) called the projections “very sobering.” “This means more belt tightening is in order this year at both the state and local levels,” Codey said. “Everything in our budget needs to be reviewed. Nothing should be taken off the table, including the gold on the dome” of the Statehouse. In light of the reshaped fiscal landscape, state officials canceled the scheduled sale of $750 million in transportation bonds Wednesday so they could update background information for potential buyers. The sale is scheduled for today. Corzine and state Treasurer David Rousseau declined to give specifics Wednesday on where cuts could come, or which contracts would be targeted for reductions. “We will look at the largest absolute dollar contracts, and we’ll sit down and talk to the vendors,” Corzine said. He said those “same kinds of discussions” will be held with state workers, adding that while he does not expect layoffs, “we’re not taking that off the table.” The governor briefed union leaders on the budget situation Wednesday, said Bob Master, a spokesman for the Communications Workers of America, the largest state employees union. “We told him in no uncertain terms that at a time when consumer spending is plummeting and undermining the economy, that laying off middle class wage earners or postponing their pay increases was exactly the wrong direction to go in,” Master said. That step was taken Wednesday by New York Gov. David Paterson, who asked his state workers to delay a previously negotiated 3 percent pay raise. October was brutal to New Jersey, Wednesday’s numbers show. Corporation business taxes were off by nearly 16 percent from the administration’s projections, and income taxes by 14 percent. The sinking fortunes of banks and the housing industry prompted the financial institutions tax to drop 55 percent, and the realty transfer tax 38 percent, below projections. Corzine, a former chief executive of Goldman Sachs, said last month was the most volatile he’s ever seen. He cautioned that the budget projections are certain to change again. “We’re in unprecedented times,” he said.

Although a majority of members present at the regularly scheduled monthly general membership meeting held on October 14, 2008, did in fact vote to approve the duly proposed bylaw amendments unanimously recommended by the Association’s Bylaws Committee, the supermajority standard required for ratification was not met. Members concerned with how it could impact efforts to unionize the Chiefs or next year’s renewal of the Association’s comprehensive legal defense plan administered by Association general counsel Mario Iavicoli, Esq., were encouraged to contact Association Executive Vice President and Bylaws Committee Chairman Joseph Sooy. Suggestions were also solicited concerning which Association-provided services, to which the membership may have grown accustomed, should be curtailed or eliminated. Instead, the members present voted overwhelmingly for a motion directing the Bylaws Committee to draft language for a flat dues increase for active and associate members ($20 to $30 biweekly) in preference to the Bylaws Committee’s unanimous recommendation that union dues and agency-shop fees be stabilized by basing them on a relatively small percentage of an active or associate member’s base salary. All suggestions were welcomed and considered when the Bylaws Committee subsequently met on October 20, 2008. Then, at a meeting of the Association’s Executive Board held on November 4, 2008, Executive Vice President Joseph Sooy, Chairman of the Bylaws Committee, made a motion, seconded by Treasurer Timothy Callahan, also a member of the Bylaws Committee, to propose certain bylaw amendments for consideration, and to subject them to a ratification vote, at the next monthly general membership meeting, on November 11, 2008. The motion was approved, and a special notice to the membership was posted. Therefore, pursuant to ARTICLE XII of the Constitution & Bylaws of the Association, the duly proposed amended bylaws were subject to a ratification vote at the next monthly general membership meeting, on November 11, 2008. It was at this regularly scheduled monthly general membership meeting that they were duly adopted and ratified.

Commencing with pay period 6 (calendar year 2009), the biweekly dues for active and associate members will be $30 per pay period.

The Association provides comprehensive legal defense to all its active and associate members in good standing, and the legal-defense coverage includes the following:

However, it does not cover criminal complaints filed by subordinates. For instance, a member recently found himself in such a situation, only to learn that he was not covered after a subordinate had filed criminal complaints against him. Nevertheless, in keeping with the Association’s commitment to providing the membership with the best representation possible, the Executive Board voted to pay for his criminal defense.

Consequently, the Association will be looking to include this feature in any future negotiated legal-defense agreement, fiscal resources of the Association permitting.

Any member in good standing with questions about the Association’s legal-defense coverage shouldn’t hesitate to contact Association President Scott Derby at (609) 774-3941 or at Scott.Derby@commandingofficersnj.org. Remember, before any questioning takes place that may lead to disciplinary action, members are strongly encouraged to contact the Association immediately to seek representation.

On October 14, 2008, the members present at the monthly general membership meeting voted to endorse Congressman Frank LoBiondo (R) for re-election in New Jersey’s 2nd Congressional District and state Senator John Adler (D), Chairman of the Senate Judiciary Committee, in New Jersey’s 3rd Congressional District.

By Todd B. Bates and Paul D’Ambrosio
GANNETT NEW JERSEY

October 22, 2008

It’s an elite club with a mushrooming membership: state employees paid more than $100,000 a year in salaries. The club nearly doubled in size to 4,422 members from April 2006 to April 2008, according to an Asbury Park Press review of state payroll data. And while the number of state workers dropped from 84,627 to 79,982, or 5.5 percent, their salaries grew to nearly $4.9 billion, or 5.7 percent. The average compensation for all state employees those in the executive, legislative and judicial branches rose from $54,236 to $60,666 in two years. That’s an increase of 11.9 percent. A state official termed the increase as an “anomaly.” Visit www.DataUniverse.com, the Daily Record’s public records Web site, and look under “What’s New” for a searchable database of state salaries for 2008. The data can be searched by department, name, type of union, or $100,000-plus salaries. “The jump in salaries across the board seems pretty high in a period of time when workers in the private sector were looking at 3 percent increases, on average, annually,” said Joseph Marbach, a political science professor and dean of the College of Arts and Sciences at Seton Hall University in South Orange. “It’s quite surprising that you see these gains in the public sector outstripping the private sector,” he said. “Generally, it’s the reverse.” Tom Vincz, spokesman for the state Treasury Department, said “salary expenses are part of mandatory costs for government and the administration has worked very hard to negotiate contracts that reflect the times.” Gov. Jon S. Corzine has made cutting the state payroll a priority since taking office in January 2006. Though the number of workers has declined, their rising salaries offset any savings over a two-year period, however, according to state data, which do not include overtime. In many agencies, average salaries rose by more than twice the rate of inflation, which was 6.3 percent between 2006 and 2008. Average salaries increased 16.1 percent at the Department of Banking and Insurance and Board of Public Utilities, 15.9 percent in the Department of Labor and Workforce Development, 15.1 percent in the Department of Agriculture and 15 percent in the Department of Environmental Protection, according to data. A 5.5 percent drop in employees in two years “isn’t too bad” and has begun to “make a dent in the system,” Marbach said. But “even when we seem to make apparent gains, those gains are wiped out when you increase the salaries at twice the rate of inflation,” he said. Unionized workers received a 3 percent increase in July 2007 and a 3 percent increase this past July, Vincz said. Mark Perkiss, spokesman for the Department of Personnel, termed the salary increases from April 2006 to April 2008 as “an anomaly.” The McGreevey administration in 2003 negotiated pay boosts for both rank-and-file workers and upper tier managers that went into effect at the end of June 2006, he said. At that time, an additional pay step was added to the scale to allow top-paid employees to move into a higher salary range, Perkiss said. That likely accounts for the increase in the number of employees now being paid $100,000 or more, he said. “This administration inherited it,” he said of the 2006 pay increases. “We have taken major steps to keep salary and employee costs under control,” including limiting raises to once a year and reducing the size of the work force. In comparing the two years, the Asbury Park Press found 911 workers in the Department of Law and Public Safety with $100,000-plus salaries, an increase of 336 from 2006, data show. Agency spokesman David Wald said 224 of the 336 were in the state police division, and troopers received 4 percent increases in July 2006 and July 2007. The balance of the 336 are lawyers, administrators, managers, investigators and corrections officers, Wald said. They received salary increases ranging from 3 to 6 percent and promotions in the summer of 2007, but no manager or deputy attorney general got a pay hike in 2006, he said. “It was obviously enough to get some of these people over” $100,000 a year, he said. The number of department employees decreased from 10,200 in April 2006 to 9,334 in mid-September, partly due to early retirements and attrition, according to Wald. Generally speaking, the highest state salaries go to medical people, such as physicians and psychiatrists, as well as judges, cabinet members, legislative staffers and Governor’s Office employees. Corzine signed a bill this year that gave substantial pay hikes to judges and county prosecutors. State Supreme Court Chief Justice Stuart Rabner’s annual pay will be $192,795 on Jan. 1, an 11.1 percent boost. Associate Supreme Court justices will get $185,482, while Superior Court judges will receive $165,000. County prosecutors will be paid $165,000 on Jan. 1, up 17 percent. Corzine, a multimillionaire, has declined to receive his $185,000 salary and accepts $1 a year instead. State cabinet members who run departments make $141,000. Meanwhile, New Jersey and the nation are in the “worst economic crisis since the Great Depression,” Corzine said in a speech to the Legislature last week. According to the treasury department’s best guess, the state is facing a $400 million revenue shortfall this year, he said. Corzine said he’s asked his cabinet to begin cutting back equipment purchases, consultant contracts and lower priority programs. “We will undoubtedly need more cuts,” he said. “We may have to take more drastic steps in the months ahead.” Spending cuts without massive layoffs will not make up for a $400 million shortfall, which could reach closer to $1 billion, David Rosen, budget and finance officer for the nonpartisan Office of Legislative Services, told a state Senate panel Monday. But the state could dip into its budgeted $600 million surplus, use some of the $650 million earmarked for reducing state debt over five years or delay making contributions to pension programs in fiscal 2009, the expert said.

by Dunstan McNichol
The Star-Ledger

October 21, 2008

The global economic crisis cost New Jersey’s public pension accounts more than $5 billion last month, reducing the value of the funds to $70. 7 billion as domestic and international stocks shrank in value, the state Treasury Department reported yesterday. September’s loss was among the steepest one-month decline ever suffered by the accounts, state records show. The drop from $76 billion on Aug. 31 continued a swoon that has lasted more than a year. The funds have lost $12 billion, or 14 percent of their value, over the past year, and now stand more than $14 billion below the peak value they reached in early 2000. It adds extra pressure to a retirement fund that actuaries say is already underfunded by about $29 billion. The only bit of good news is that the market has shown some strength in recent days, though it is still off its historic highs of a year ago. Yesterday, the Dow Jones industrial average rose 413.21, or 4.67 percent, to 9,265.43. Broader indexes also rose sharply Monday. The Standard & Poor’s 500 index jumped 44.85, or 4.77 percent, to 985.40. The Nasdaq composite index rose 58.74, or 3.43 percent, to 1,770.03. According to the Treasury Department report, the pension accounts lost 8.82 percent on their stock and other investments over the first three months of the state budget year. That follows a full-year decline of about 3 percent in the budget year that ended June 30, state records show. For taxpayers, those losses can be costly. Actuaries who calculate each year how much the state should put into the pension accounts to meet future benefit payments assume the money on hand will earn an average of 8.25 percent each year. When long-term returns miss that mark, taxpayers must make up the difference. This year, between state and local taxes, taxpayers put more than $2 billion into the accounts, which bankroll retirement benefits for 700,000 teachers and public employees. The state’s contribution alone exceeded $1 billion this year, but was still less than half the amount the actuaries said the accounts needed. Since taking office three years ago, Corzine has included about $1 billion in each of the state budgets he has crafted. That reversed a seven-year trend in which the state had essentially skipped its payments into the fund as a budget-balancing maneuver. Yesterday, during a special hearing on the effects of the collapsing economy on the state budget, David Rosen, an analyst for the non-partisan Office of Legislative Services, suggested that skipping or trimming the projected $1 billion payment due into the pension accounts in June is one way lawmakers could counter the loss of tax revenues caused by the economic crisis. While emphasizing he was not endorsing such an approach, Rosen said lawmakers may find themselves with few attractive options if the fading economy continues to drain tax revenues from state coffers. According to yesterday’s Treasury Department report, the pension funds’ domestic stock holdings lost $2.6 billion in value during September, while the value of its international stock portfolio dropped to $13.8 billion, from $16 billion. The state has placed $10.2 billion in alternative investments such as real estate, hedge funds and commodities, but did not provide a return rate for those holdings.

On September 29, 2008, Association President Scott Derby, Executive Vice President Joseph Sooy, Secretary Kelly Gibson, and Sgt.-at-Arms Jeffrey Saville met with the Executive Director of the New Jersey Juvenile Justice Commission (JJC) and her senior executive staff. The purpose of the meeting was to introduce to the unions her newly appointed Deputy Executive Directors and Superintendent of the New Jersey Training School (Jamesburg). Newly appointed Superintendent Craig Farr, retired Chief of Jamesburg and the Juvenile Medium Security Facility (Bordentown), had come highly recommended by all the state law enforcement unions, as well as the CWA. Specific issues were reserved for subsequent meetings to be scheduled with the Executive Director.

The JJC is administratively under the state Office of the Attorney General/New Jersey Department of Law & Public Safety.

by Angela Delli Santi
The Associated Press (AP)

September 18, 2008

TRENTON, N.J. — Worried state workers grilled pension overseers about the value of New Jersey’s investment funds Thursday, demanding an explanation for a recent $100 million loss in Lehman Brothers stock. Investment Division Director William Clark said the state’s portfolio is weathering Wall Street’s financial storm better than many, in part because fund managers were able to spot pending financial difficulties more than a year ago and steer New Jersey holdings accordingly. The state’s portfolio was down 2.9 percent for the last fiscal year, and is down 0.94 percent in the first two months of this fiscal year, but those returns beat market averages. “We’ve tried to prepare the portfolio as best we could to try to insulate the portfolio from the downside,” Clark told two dozen union workers who crowded into the State Investment Council’s monthly meeting. “I don’t think anyone could have predicted the series of events that have unfolded over the past month.” Part of the state’s $76 billion investment fund is used to fund pensions and part provides a short-term investment vehicle for the state and municipalities. As for the investment in Lehman, “We made a mistake,” said Clark. The state bought 4.3 million shares of preferred and common stock for about $180 million in June and has since sold it in increments, some for a fraction of the original price. Though the loss is estimated at $100 million, the Lehman holding represented only a fraction of 1 percent of the overall pension fund. And because the sale of other financial services stocks financed the Lehman purchase, “had we not sold those stocks, we would have lost almost as much as we did on Lehman,” Clark said. Nonetheless, Clark indicated Thursday that litigation against Lehman is possible. The explanation did little to appease state workers who have been watching the pension fund returns with increasing trepidation. “We’re here because we are deeply concerned” about the types of investments are being made, said Paula Van Pelt, who works in the Department of State’s arts council office. “They are investing in highly risky stocks, hedge funds and such. We cannot be guaranteed that our funds will be safe. We also want to manage our own investments.” CWA Local 1033 executive secretary Tony Miskowski said while the Lehman holding represents a small fraction of the portfolio, it is a lot of money to state workers who average $50,000 a year in salary and can expect a yearly pension of $27,250 after 30 years of service. “That equates to about 4,000 annual pension salaries,” said Miskowski. “That’s the human side of he equation.” Investment Council member Susan Ann Crotty defended the managers for having the foresight to steer clear of positions in Merrill Lynch, Goldman Sachs, Fannie Mae and others. “We could have been talking about figures that are really huge,” she said. “Instead of taking the one thing they did wrong, why are not the people in this room applauding them for all the things they did right? That’s the human side of the equation.” Clark said he could not guarantee “there is not going to be more fallout elsewhere in the portfolio.” With a portfolio so large it is impossible not to incur some risk that comes with diversity, he said. New Jersey does not own bonds backed by subprime mortgages and it sold its student loan insurers before the crisis hit. Those and other moves helped New Jersey produce better returns than others, Clark said.

by Dunstan McNichol
Star-Ledger

September 19, 2008

New Jersey may sue Lehman Brothers officials after losing more than half of the $180 million they invested with the bank in June, because, state officials charge, they are not sure they were given accurate information before they paid into the company. Lehman this week filed for bankruptcy protection. “That will potentially be the subject of litigation,” William Clark, director of the Division of Investments, said during a heated meeting of the State Investment Council in Trenton yesterday. The pension funds closed the books on a disastrous foray into Lehman this week, collecting between 22 cents and 32 cents a share on the remaining 1.8 million of about 4 million shares of Lehman they had bought for $28 apiece in June, the division reported yesterday. Lehman, the 158-year-old investment bank that predates the Civil War and weathered the Great Depression, filed for bankruptcy protection on Monday after it failed to negotiate a sale for itself. The fire sale disposal of shares in the financial company means the state lost $115.5 million on a $180 million Lehman stake in less than four months, sales results revealed by the Investment Division yesterday indicate. The losses came as an unprecedented financial meltdown this week left the chronically underfunded pension funds with a 6.3 percent loss on investments for the first eight months of 2008. Overall, the funds ended August containing $76 billion — about $5 billion less than they held at the start of the year. The losses bode poorly for taxpayers, who must eventually cover any shortfalls in the retirement accounts. Actuaries calculated that as of July 2007, the funds contained about $29 billion less than they will need to cover the long-term cost of retirement benefits promised to the 700,000 teachers and government workers in the state retirement systems. Among other things, the actuaries assume the funds in the retirement accounts will earn on average 8.25 percent each year. Over the state budget year that ended June 30, however, the funds lost 2.9 percent on their investments. Through the first two months of this budget year, the funds are also down just under 1 percent. Clarks’ division has come under scathing criticism from Republicans, who claim the investment into Lehman’s $6 billion bailout effort in June was ill advised and a potential conflict since two Investment Council members work for Lehman. Clark, however, insisted the funds were faring better than other public retirement accounts and better than the stock markets in general. “We made a mistake — and boy we made a big one on this stock,” he said during yesterday’s council meeting. “But we’ve made a lot of right decisions.” Orin Kramer, chairman of the Investment Council, also praised the work of the Investment Division. “The best managers in the world are not going to hit .900,” he said. “Cherry-picking a portfolio for its losses is unfair and demoralizing to the people.”

For legislative news and related developments, please visit Scott’s Capitol Report, which can be accessed by clicking on the menu’s Legislation tab (upper left).

On September 11, 2008, the New Jersey Law Enforcement Supervisors Association (state sergeants’ union) and this Association filed a joint lawsuit in Superior Court against the Governor’s Office of Employee Relations (OER) contending that the paid convention leave afforded groups such as the Fraternal Order of Police (FOP) and the New Jersey State Policemen’s Benevolent Association (PBA) is arbitrarily exclusive and unconstitutional.

The matter has been elevated from state Superior Court to the Appellate Division, and it is our understanding that oral arguments before the state appeals court are scheduled for as early as this March.

The New Jersey Law Enforcement Supervisors Association (state sergeants’ union) has recently decided to withdraw from the joint lawsuit. However, the litigation will continue because the case has been transferred to Association legal counsel Mario Iavicoli, Esq.

Click HERE to review the actual text of the lawsuit.

Please return here often to track the progress of the constitutional challenge to paid convention leave.

On April 9, 2008, the New Jersey Public Employment Relations Commission (PERC) issued representation certifications which effected a split of the traditional collective bargaining unit of rank-and-file state law enforcement officers in the classified career service: PBA Local 105 was certified to represent those officers employed by the New Jersey Department of Corrections, Division of Parole, or Juvenile Justice Commission; and the NJ State PBA was certified to represent all other state law enforcement officers in the classified career service. It signified the fact that rank-and-file state law enforcement officers in the classified career service, for the first time in the history of New Jersey, had been formally divided into two (2) separate groups for purposes of collective negotiations with the State of New Jersey. The strategy of divide et impera, commonly known as divide and conquer, is well on its way to fruition.

On March 30, 2007, then-Executive Vice President Scott Derby had a meeting with the newly confirmed Chairman of the State Parole Board. Given the number of anticipated retirements from state service, it was discussed that the Association would like to see all law enforcement vacancies filled. The Chairman agreed, citing his steadfast belief that every law enforcement agency, in order to be effective, must have a visible, coherent chain of command. On June 4, 2007, President Derby followed up on the meeting with a letter to the Chairman thanking him for his commitment to fill the vacancies. In a reply letter to President Derby dated June 11, 2007, the Chairman reaffirmed that commitment, along with assurances to work with the New Jersey Department of Personnel to develop a new promotional examination, as the then-current promotional list had been exhausted. A new test was later administered, and a new promotional list has since been promulgated.

On August 20, 2008, Association President Derby and Executive Vice President Joseph Sooy met with the Chairman of the State Parole Board and the Director of the New Jersey Division of Parole to discuss Captain vacancies there. Also in attendance were most of the constituent members in Parole. Following up on that meeting, President Derby addressed a letter to the Governor, key members of his cabinet, budget officials, and top state legislators, requesting that the vacancies be filled. As a result, the issue has been resolved; and the Association welcomed its newest member from Parole earlier this year (2009).

by Gregory T. Volpe
Gannett State Bureau

August 16, 2008

TRENTON, NJ — Horizon Blue Cross Blue Shield of New Jersey applied Friday [August 15, 2008] to convert to a for-profit company — a move that could pump at least $1 billion into state coffers to pay for health care. In 2005, when the company last considered going private, some estimated the move would fetch at least $3 billion for the government. “When I was governor, it was $3 billion. I don't know where $2 billion disappears,” said Senate President Richard J. Codey, who was governor when Horizon negotiated but did not reach agreement with the state to shed its nonprofit status. It made no formal application then. “Certainly you’d want it to be more, a heck of a lot more, because you can do more with $3 billion than you can with one,” Codey added. The money — equal to the company’s value when it makes its first stock offering — would come to the state once a foundation is created to govern the funds. All proceeds would have to be used to fund health care for the needy [i.e., universal healthcare for the uninsured]. Betsy Ryan, president of the New Jersey Hospital Association, also questioned the reduced benefit to the state, among other issues, such as whether the money would truly be used for health care and whether people would pay a higher price for insurance. “The question has to be asked,” said Ryan, noting the company has a $1.6 billion surplus. “Three, four years ago, I thought we were talking about $3 billion to $5 billion. I don’t know where the $1 billion came from.” Michael T. Kornett, chief executive officer of the Medical Society of New Jersey, said an economist hired by the society said the figure should be $8 billion, not $1 billion. “Nobody knows where those numbers are coming from,” Kornett said. “They don’t come from economists; they come from Wall Street.” William J. Marino, the insurer’s president and chief executive officer, blamed the lower figure on the economy. “What happened in the public markets is not a pretty picture for any sector of the stock market, and the public companies in our business have all taken a beating,” Marino said. “That’s reflected in the difference in values we’re anticipating.” Gov. Corzine's office gave no opinion on the application. Legislative response was tepid, calling for a thorough review to make sure that a conversion would provide health care to the needy while not hurting the 3.6 million people Horizon currently insures. “In a perfect world, that’s what could happen,” said Sen. Joseph F. Vitale, D-Middlesex, chairman of the Senate health committee. “But there are a number of considerations in advance of that, which is what would happen to the cost to current policies for people.” Kornett said insurers that go public often collect more from their customers and pay out less to doctors. “The shareholder expectation becomes great,” Kornett said. Marino said the conversion won’t affect those currently enrolled. “There really will be no difference in our product offerings, either during our application process or post-conversion,” Marino said, adding that premiums would also be unaffected. “If our prices were not competitive, we would not gain members. We would lose members.” Marino said the decision to go public, which could take seven months for approval, would give the insurer the ability to invest in capital markets, such as technology. He said the company is worth an estimated $1 billion but has a $1.6 billion surplus with about $35 million worth of debt. “In financial terms, you call it monetizing an asset,” Marino said of what the company hopes to do.

On August 13, 2008, the State Health Benefits Commission met to discuss the proposed health-plan rates for 2009. The Commission will meet again at 10:00 a.m. on Thursday, August 21, 2008, to act on the rates proposed. Often, the rate-setting process is used to bring about other healthcare-plan changes. In short, the proposed rates for public employees and retirees covered under the State Health Benefits Program (including dental, medical and prescription-drug coverage) are quite low, surprisingly, much lower than industry norms. As to state employees and retirees, the State of New Jersey will continue to enjoy considerable savings. With respect to county and municipal employees, rates are low enough to encourage local governments to continue the trend of dropping healthcare coverage through private insurance brokers and join the State Health Benefits Program (SHBP). The State of New Jersey spent $92 million less in 2007 to provide health benefits to state employees and retirees than had been anticipated. The one area of benefit changes that may be voted upon next Thursday pertains to the prescription-drug plan for retirees in Aetna and Cigna. Aon Global Risk Consultants presented the Commission with ideas for changes in dental benefits that we believe would require collective bargaining to implement.

The main points of the proposals are as follows:

1. Rates for active state employees average a 3% increase (2% for NJ Direct 15 and 8% for Aetna & CIGNA). This is much lower than industry norms. Aon Global Risk Consultants stated that most large clients are expecting 8-9% increases in health-insurance rates.

2. Prescription-drug coverage is going up 2% for active state employees.

3. State early-retiree rates are going up an average of 10% (9% for NJ Direct 10 and 15, and 12% for Aetna and CIGNA). The rate for prescription-drug coverage for Medicare retirees in NJ Direct has no increase; the rates for prescription-drug coverage for Medicare retirees in Aetna and Cigna are going up 10%. These rate increases are well below industry norms … again. Aon Global Risk Consultants stated that SHBP rates had been far below industry norms for at least the last four (4) years.

4. For calendar 2007, expenses were $92 million less than had been expected, thereby saving the State of New Jersey this amount. Likewise, expenses from April 1, 2008, through December 31, 2008, are anticipated to be $29 million less than expected.

5. As part of the rate renewal, the New Jersey Division of Pensions and Benefits is attempting to change prescription-drug benefits that state and local retirees in Aetna and CIGNA now receive. The Division wishes to change this benefit to align it with the prescription-drug benefit currently received by retirees in NJ Direct 10 and 15. For instance, it is proposed that prescription-drug copays for Aetna & Cigna retirees be raised to $5/11/16 effective 1/1/09 from the current $5/10/15 (generic copays would not be increased.) Additionally, the Prescription-drug copays for Aetna & Cigna retirees would be subject to annual increases in the same way that Prescription-drug copays for NJ Direct retirees are subject to annual increases.

6. Additionally, the Division proposes that an 0ut-of-pocket (OOP) maximum be established effective January 1, 2009, for Aetna and Cigna retirees who currently have no OOP. The proposed amount is $1,160 — the same as the proposed OOP for NJ Direct retirees. Aon Global Risk Consultants stated that the savings from this change would not be great. The State of New Jersey expects to save approximately 2% of prescription-drug costs for Aetna and CIGNA retirees; but establishing an OOP maximum will cost 1% of prescription-drug costs, thereby giving a net savings to the state and local governments of 1% of prescription-drug costs for Aetna and CIGNA retirees, essentially shifting 1% of the costs to them. The Association contends that these changes should be negotiated with the unions rather than unilaterally imposed by the Commission.

7. Dental rate changes are low or nonexistent — 0% for the dental expense plan and small increases of 0.0%-3.5% for the dental provider 0rganizations (DPOs). The Division is suggesting that efforts to reduce dental plan costs be “considered.” These ideas include providing more and better information concerning the costs of DPOs during open enrollment, changing employee contributions to lower contributions for DPOs and increase contributions for the Dental Expense Plan, lower employee contributions for low-cost DPOs, raising employee coinsurance in the Dental Expense Plan for visits to out-of-network dentists, opening the DPOs to retirees, and improving marketing to local-government employees (very few of whom participate in the dental plan).

8. Rates for active employees of county and municipal governments enrolled in NJ Direct 10 and 15 are recommended to increase by 3%, early retirees by 8%, and Medicare retirees by 0%. Aetna and Cigna recommended rates are 6% increase for active employees, 12% increase for early retirement, and 10% increase for Medicare retirees.

9. The recommendation for the prescription-drug card is a 2% increase.

10. Overall rates are recommended to increase by 4% — much below industry norms. The many private insurance brokers attending the meeting appeared distressed at the low rates; for they are likely to lose a substantial amount of business, as many local-government employers will be attracted by the low rates.

11. The local-government fund has a surplus of over $200 million, allowing a $28 million subsidy for 2009, which kept rates from being raised by another 4%.

12. In order that further generic usage may be encouraged, Aon Global Risk Consultants is recommending that the generic copays for retail and mail orders not be increased. Preferred-brand copays would increase from $18 to $19 for retail orders and $27 to $29 for orders by mail.

13. The OOP maximum would go from $1,092 to $1,160 annually. Recently, the NJEA (public teachers’ union) and CWA lost a case in a state appellate court on this issue — which weakens the legal argument that changes in retiree prescription-drug copays and OOPs must be negotiated rather than unilaterally imposed by the Commission.

At the monthly general membership meeting held on August 12, 2008, the draft fundraising agreement between Community Support Inc. (CSI) and the Association was made available to the membership for review, discussion, and possible consideration. Subsequently, the draft agreement was unanimously approved with revisions.

On July 17, 2008, Association President Scott Derby, Executive Vice President Joseph Sooy, and Secretary Kelly Gibson participated in a meeting with the state Attorney General’s Office and the Executive Director of the Juvenile Justice Commission (JJC), Ms. Veleria Lawson. The meeting was attended by other union officials, and the Attorney General was represented by Assistant Attorney General Shavar Jeffries.

The several-hour-long meeting included spirited discussions on the following issues:

No promises were made at this meeting, save for Mr. Jeffries’s assurance to follow up and continue dialogue with the unions, especially with respect to the elimination of shift overlap for JJC officers.

The NJLESA (state sergeants’ union) and our Association have formed a coalition resolved to fight back against the forces of prison privatization here in New Jersey. Association President Scott Derby and Executive Vice President Joseph Sooy, along with union officials from the NJLESA, attended hearings before the Assembly Budget Committee on April 15 and the Senate Budget & Appropriations Committee on April 16, 2008.

Escapes of convicted felons from private facilities have become all too frequent, and the new crimes they commit during and after their escapes back into the community are not only unacceptable but otherwise preventable. On the other hand, escapes from state correctional facilities are exceedingly rare on account of the fact they are staffed by trained and equipped correction officers and their perimeters, secured by armed law enforcement professionals. Public attention should be focused on the alarming number of convicted felons who have been transferred from state prison to private facilities and subsequently escaped back into the community.

The State of New Jersey has posted an RFI soliciting private vendors that may be interested in operating a “secure” or “medium security” facility to house “sexually violent predators.”

At the same time, the State Parole Board has announced its new initiative to use privately owned and operated Residential Assessment Centers (RACs), instead of county jails and state prisons, to incarcerate parole violators. Parolees who are released from state prison back out into the community and then go and willfully violate the terms and conditions of their parole — including drug and weapon offenses — should be returned to prison. It is notable that the term parole is defined in the Law Encyclopedia as “[t]he conditional release of a person convicted of a crime prior to the expiration of that person’s term of imprisonment, subject to both the supervision of the correctional authorities during the remainder of the term and a resumption of the imprisonment upon violation of the conditions imposed.”

Not surprisingly, the proprietors of these private facilities contribute hundreds of thousands of dollars each election cycle to state legislators. Please join us in telling our elected officials, public-policymakers, and these privateers that New Jersey’s public safety is not for sale. Together, we can stop the early, or premature, release of criminals back into the community. We should all be working on keeping our streets and our children safe from sexual predators and other violent offenders.

Update: The first radio ad of the joint media campaign opposing prison privatization is scheduled to air across New Jersey on 101.5 and 97.3 FM during rush hour on the morning and late afternoon of Thursday, May 29, 2008, and to be repeated during the same periods of the day for two (2) weeks. Special thanks go out to the NJLESA and its president, Steve Brzdek, for all the time and resources they have expended to expose the threat to public safety posed by New Jersey’s reckless and poorly disguised experiment with prison privatization.

NJ Budget, School Borrowing, Benefits Cuts Approved
Posted June 24, 2008

by Tom Hester Jr.
Associated Press (AP)

June 23, 2008

TRENTON, NJ — The New Jersey Legislature on Monday approved a cost-cutting state budget, borrowing $3.9 billion for school construction and cutting taxpayer-paid benefits for government workers as it wrapped up crucial spending items. The Assembly voted 45-34 and the Senate 23-17 to pass a budget that would cut funding for, among others, hospitals, municipalities, colleges, property tax rebates and nursing homes, deny a funding boost for nonprofits that care for the disabled and extend a utility tax. The Assembly voted 42-36 to borrow, without voter approval, $3.9 billion for school construction, mainly in poor cities. The Senate followed suit, voting 21-18 to approve the borrowing that would mainly build schools in the state’s poorest school districts. The bill to rework taxpayer-paid benefits was approved 31-8 by the Senate, but stalled in the Assembly for nearly four hours when Republicans refused to approve it. It finally passed 54-13. Assembly Minority Leader Alex DeCroce, R-Morris, said they supported the bill after receiving assurances from Democratic Gov. Jon S. Corzine that he would issue an executive order imposing tough restrictions on filling state jobs that become vacant this year because of retirement incentives. Senate Majority Leader Stephen Sweeney, D-Gloucester, also assured Republicans he would seek more benefit reforms next year. Corzine and his fellow Democrats who control the Legislature conceded budget cuts would be painful but needed. “New Jersey is facing an economic emergency that if left alone would very likely bankrupt this state,” said Assembly Budget Chairman Lou Greenwald, D-Camden. The state Constitution requires a budget be signed by July 1. Republicans charged the budget hits residents battling the nation’s highest property taxes. “This budget does nothing to make our state more affordable,” said Senate Minority Leader Tom Kean Jr., R-Union. The budget includes $8 million to begin providing health insurance to more low-income parents and require every child have health insurance. It also abolishes the state commerce and personnel departments. It also calls for offering the retirement incentives to 2,000 state workers to save $91 million. That would bring salary savings but increase retirement benefits. So legislators also approved increasing the retirement age from 60 to 62, requiring government workers and teachers earn $7,500 per year to receive a pension, eliminating Lincoln’s Birthday as a holiday, allowing the state to offer incentives not to take health insurance and requiring a municipal employee work 20 hours per week to get health benefits. The changes would mainly affect new government workers and teachers. Corzine hasn’t committed to the bill, and unions called for him to veto it. “He should honor the good faith agreement he made and veto the legislation,” said Carla Katz, president of Communications Workers of America Local 1034, the largest state workers union chapter. But the bill passed by veto-proof margins in both houses. The plan to borrow $3.9 billion for school construction stems from a 1998 Supreme Court order directing the state to build schools in the poorest school districts. The state initially borrowed $8.6 billion, but spent the money without completing the work. “It is impossible to provide a 21st century education in 19th century facilities,” said Assemblyman Albert Coutinho, D-Essex. The bill would allocate $2.9 billion to the poor districts and $1 billion to all other districts, but Republicans wanted to ask voters to approve the borrowing, noting Corzine has also backed requiring voters approve borrowing. They also emphasized how the state has $32 billion in debt, making it the nation’s fourth-most indebted state. “Kids are important, but so are the rest of us,” said Assemblyman Michael Doherty, R-Warren. “What about retirees? What about taxpayers?” Corzine, in backing the borrowing without voter approval, cited the court order, shoddy conditions in urban schools and the economic boost construction would bring. Still, the Senate voted 29-0 and the Assembly 61-15 to ask voters in November to amend the state Constitution to require public approval for state borrowing.

Making Steep and Unpopular Budget Cuts, Corzine Knows He Risks Losing Reelection
Posted June 23, 2008

Atlantic City, NJ — As he grapples with one of the country’s worst fiscal crises, Gov. Jon S. Corzine crosses New Jersey sounding a bit like a budgetary Grim Reaper, darkly warning audiences of the pain already inflicted and the suffering still to come. “Our finances in this state are out of kilter,” he said at one stop, a meeting of county officials in the ballroom of a resort hotel. “We can no longer go on spending more than we take in.” He continued: “I’d like to be a government activist. But if we don’t have the resources, we’re actually kidding ourselves about the direction we’re taking.” At another stop here, at the state’s AFL-CIO convention, Corzine struck an equally somber note. “I know you’re frustrated I’m frustrated,” he told the assembled union members. “It’s heartbreaking to make some of the choices we’re making. “We’ve borrowed until we’re blue in the face,” he added. “We’ve got to change. Change does not come easily.” The Democrat’s bleak message is not one that politicians normally like to deliver — and his popularity has plummeted as a result. But the governor, who ran Goldman Sachs investment bank before entering politics, has seized it as his mission to bring a dose of Wall Street reality to a state crushed by $32 billion in debt and a revenue shortfall forecast at close to $3 billion, the third worst in the nation after California and New York. As Corzine and the legislature navigate toward a new budget, he is promising to hold it to $32.8 billion, freeze spending and begin paying down the huge debt. He has frozen government hiring and reduced the state’s workforce, now down by about 2,000 people. He is cutting property tax rebates to some homeowners. He is proposing deep cuts in funding for hospitals’ charity care for the uninsured. He is planning to add $600 million for education, but to do that, he says, “I just have to cut something else.” None of this comes naturally to a self-described progressive, and he repeatedly uses the word “heartbreaking” when describing some of his cuts. “He’s not backed away from the notion that he’s got to get this right,” said Tim Vercellotti, a professor at Rutgers University’s Eagleton Institute of Politics. “Here’s a guy coming out of Wall Street and high finance who’s looked at the books and said ‘We’ve got to do things differently.’” He added, “Like him or hate him, you have to admire him for putting his cards on the table.” Sometimes, however, other politicians and the public have not liked those cards, forcing Corzine to withdraw some of his proposals under fierce opposition. His major plan for paying down the debt and raising money for infrastructure improvements was to lease New Jersey’s toll roads and raise toll rates about 50 percent annually beginning in 2010. He traveled around the state, carting charts and graphs to town meetings. But the criticism was ferocious, as his plan came to be seen simply as a toll increase, and he dropped the idea. “I don’t think the public was willing to join me in paying down the debt,” Corzine said in an interview between appointments. “I was probably too aggressive in what I was trying to accomplish.” Similarly, his idea to cut state aid to the smallest New Jersey towns, as an incentive to get them to merge, was shelved after an uproar from local officials. The experience left him chastened. “Home rule is another one of those things, like taxes,” that is difficult to touch, he said. The effort prompted one former small-town mayor, Carl Bergmanson of Glen Ridge, to begin collecting signatures for a referendum to have Corzine recalled. Bergmanson said he has collected “boxes and boxes” of signatures but is still probably a long way from the 1.2 million names he needs to force the issue in November. “He’d better pray his name’s not on there,” said Bergmanson, who runs the Web site RecallCorzineNow.com. “He’d lose in a landslide.” The budget battles have taken a toll on Corzine’s public image. He was elected in 2005 with 54 percent of the vote. But a poll taken this month by Quinnipiac University showed that 52 percent of New Jersey voters disapprove of the job Corzine is doing, with 38 percent approving. In that poll, 66 percent of New Jersey residents said the state’s budget problem is “very serious.” But Corzine does not seem to be getting any credit for trying to tackle the issue; 57 percent of voters said they disapprove of the way he is handling the budget issue. “His problems are very much tied to the budget,” said Clay Richards, Quinnipiac’s assistant director of polling. “They know it’s a big problem, and they don’t like what the governor is doing.” Corzine deals with his freefall in the opinion polls with black humor. At the AFL-CIO convention, he began his remarks by saying, “It’s great to be with friends -- I’ve been looking for a few.” Commenting on the union president’s unanimous reelection, Corzine quipped, “I read the papers, and I don’t think unanimous is in the offing for my reelection.” The gubernatorial election will be held next year. In the interview, Corzine was accepting of his low approval rating and was resigned to the fact that doing what he considers right may make him a one-term governor. “I might not get reelected,” he said. “It might not make you popular. But if we’re ever going to get out from this conundrum of heavy debt load and overspending, then somebody has to take this on. “I would have failed the public if I didn’t take this issue on,” Corzine added. Declining to blame his predecessors, he called the state’s fiscal mess “a systemic issue” that grew over time because of a reluctance to raise taxes, a failure to adequately invest and past reliance on financial “gimmicks,” such as using one-time surpluses like revenue. “If I change how we do business in the state, and at least set us on a track to fiscal responsibility, then I’ll feel I’ve made a lot of inroads,” he said, adding: “Two terms would help me do that.” Also, Corzine, 61, a multimillionaire who spent $100 million on his campaigns for the Senate and for governor, has a different perspective than most politicians: He said that he does not want to make politics a career, and that he sees himself as one of the “citizen politicians” of old. He said he is looking forward to spending more time with his three grandchildren when he is no longer governor. And surviving a serious traffic accident last year has given him a new outlook on life. “I want to get reelected. But it shouldn’t be the defining element,” he said, sounding almost reflective. “I’m not looking for a job when I get done with this.”

Association Recognized Again as Sponsor of Fred Baker Memorial Scholarship Fund

On June 21, 2008, the Association was recognized again as a primary sponsor of the Fred Baker Memorial Scholarship Fund at its 11th annual golf tournament, at the Sand Barrens Country Club, located in Swainton, NJ. The Fred Baker Memorial Scholarship Fund — named in memory of Officer Fred Baker of the New Jersey Department of Corrections, who was killed in the line of duty when he was stabbed to death by an inmate in Bayside State Prison on July 30, 1997 — provides college scholarships to eligible students seeking careers in law enforcement, fire protection, or emergency medical services.

The Association was so recognized again on June 20, 2009, at the Fred Baker Memorial Scholarship Fund’s 12th annual golf tournament.

On June 17, 2008, Association President Scott Derby asked the New Jersey Department of Corrections (DOC) to consider eliminating panel interviews for promotion to the rank of Captain; and three (3) days later, on June 20, 2008, the DOC agreed to do so.

The Association would like to thank Commissioner Hayman and his senior executive staff for their commendable and impressively prompt action on this matter.

On May 5, 2008, the Association was recognized as a sponsor of the 3rd Annual Brie’s Buddies Golf Classic, which was held at Hanover Golf Club, in Jacobstown, NJ. Proceeds of the event go to children with cancer and pediatric-oncology camps, such as the Ronald McDonald Camp.

At the monthly general membership meeting held on April 8, 2008, the Association’s election committee certified the results of the recent election for Association officers as follows:

President

The installation of the newly elected officers took place at the monthly general membership meeting held on May 13, 2008. They will serve their respective two-years terms until May 2010. In accordance with the Association’s Constitution & Bylaws, any vacancy that may occur during this period shall be filled by presidential appointment subject to a confirmation vote. Subsequent to the installation, Joseph Maddock resigned the office of Treasurer because his retirement from state service would become effective June 1, 2008. Accordingly, Timothy Callahan was appointed to serve out the unexpired term as Association Treasurer, and the appointment was confirmed unanimously. On August 2, 2008, when his promotion to Chief became effective, James Collins forfeited the office of Sgt.-at-Arms. Accordingly, Jeffrey Saville was appointed to serve out the unexpired term as the newest member of the Association’s Executive Board. His appointment was confirmed unanimously.

The Association would like to extend its sincere appreciation to the members of the election committee for upholding, and demonstrating their commitment to, the principles of union democracy.

For several months, rank-and-file state law enforcement officers in the classified career service had been embroiled in an election to determine the unions to collectively represent them, especially in contract negotiations with the State of New Jersey. On April 1, 2008, the ballots were tallied by the New Jersey Public Employment Relations Commission (PERC). The results are as follows:

New Jersey Department of Corrections, Juvenile Justice Commission, and Division of Parole

Division of Fish & Wildlife Bureau of Law Enforcement, Human Services Police, Division of Taxation Office of Criminal Investigation, state college and university police, Office of Weights and Measures, State Park Police, and Palisades Interstate Parkway Police

On April 9, 2008, PERC, in certifying the results of the elections, also certified PBA Local 105 as the exclusive majority representative of the first group of employees and the New Jersey State PBA as that of the latter. These elections signify the fact that rank-and-file state law enforcement officers in the classified career service, for the first time in the history of New Jersey, have been formally divided into two (2) separate groups for purposes of collective negotiations with the State of New Jersey. The strategy of divide et impera, commonly known as divide and conquer, is well on its way to fruition.

Several years ago, the Association had considered changing its name to one more reflective of the Association’s diverse membership; and a consensus emerged that the name of the Association should be changed to the New Jersey Law Enforcement Commanding Officers Association. The members present at the July 2007 general membership meeting voted unanimously to pursue the name change; and at a meeting of the Association’s Executive Board held on September 27, 2007, a motion was made pursuant to Article XII, Section A, to amend the Association’s Constitution & Bylaws to finalize the change in name and affiliation. The motion — made and seconded by Vice President Matthew Kyle and then-Sgt.-at-Arms Robert Johnson, respectively — was approved unanimously. Special notice was given to the membership that the proposed bylaw amendment would be subject to a ratification vote by secret ballot at the next monthly general membership meeting, on October 9, 2007. Each and every active member in good standing present and properly assembled was provided with a secret ballot. A special committee was appointed to oversee the process, tally the ballots, and certify the results; and the committee subsequently certified that the bylaw amendment had been duly ratified.

On March 20, 2008, the New Jersey Public Employment Relations Commission (PERC) issued an official ruling, pursuant to law, changing the name of the Association to the New Jersey Law Enforcement Commanding Officers Association.

by TOM HESTER Jr.
Associated Press (AP)

March 14, 2008

TRENTON, N.J. — A warning from Gov. Jon S. Corzine: If you think his proposed budget is ugly now, it may soon get worse. Corzine said it’s likely national economic woes will force him to find even more cuts atop the $2.7 billion he’s already proposed this year. His $33 billion budget proposal already seeks cuts in state funding for property tax rebates, cities and towns, hospitals, nursing homes, state colleges and universities and health care, upsetting lawmakers and citizens alike. Those cuts may just be the tip of the iceberg, Corzine said. “My fear is that if there is a deepening recession that we’ll end up having to revisit what we’ve already done,” Corzine said, “and it won’t be adding back.” The U.S. Commerce Department’s report Thursday that retail sales fell in February raised new worries among analysts that the economy is headed for a recession. But Corzine, who once led Wall Street banking investment firm Goldman Sachs, said he thinks a recession has already arrived. “I don’t think anyone thought oil would be trading at $110 a barrel when we put together our budget” in February, he said. A recession could hit key state tax revenues hard. With businesses and people earning and buying less, tax collections used by the state to fund much of its spending would plummet. Corzine said state tax collections haven’t yet collapsed, but said a 15 percent decline in activity at state ports is an ominous sign. Another menacing sign: the state lost 9,200 private-sector jobs in January — the state’s worst employment month in five years. “It’s very probable that we’ll end up having to think about additional cuts,” Corzine said. Recent state budgets have been helped in late spring by unforeseen increases in state tax revenue as the economy boomed. That’s not expected to happen this year. The Democratic Corzine introduced his spending plan on Feb. 26. “Since then, you have seen even sharper rises in foreclosures, declines in employment, and rising gas prices and health care costs, than even could have been projected at that moment in time,” Corzine said. Treasurer David Rousseau said the state will get a better handle on tax collections after April’s income tax filing deadline. Corzine said he doesn’t yet know what else he might propose cutting should revenues fall. According to The Center for Budget and Policy Priorities, at least 25 states face budget deficits this year, with at least 17, including New Jersey, proposing budget cuts that threaten key services for many residents. The center found New Jersey has the nation’s fourth highest deficit, behind California, Arizona and Rhode Island. Republicans said Corzine shouldn’t wait to see if tax collections drop. They want him to start cutting anew now. “If we are in recession, then it’s likely the estimates legislators are using to guide the budget debate are already out of date,” said Senate Minority Leader Tom Kean Jr., R-Union. “I am concerned New Jersey is moving too slowly.” The state Constitution requires a budget be adopted by July 1.

The embattled Executive Director of the Juvenile Justice Commission (JJC), Howard Beyer, announced his retirement from state service, effective September 1, 2007. The announcement concluded months of speculation over his future after the unions representing state law enforcement personnel had asked for his resignation. Hopefully, his successor, whomever the Governor ultimately decides to nominate with the advise and consent of the state Senate, will bring much needed reconciliation to the agency and the unions that represent its officers and supervisors.

The JJC is administratively under the state Office of the Attorney General/New Jersey Department of Law & Public Safety.

On January 28, 2008, Governor Corzine nominated Veleria N. Lawson, an associate member of the State Parole Board, to be the JJC’s new Executive Director. Her confirmation hearing took place on February 14, 2008, before the Senate Judiciary Committee. Her nomination was unanimously reported out of committee to a confirmation vote before the full Senate; and on March 3, 2008, the Senate voted to confirm her nomination.

On January 28, 2008, Association President Scott Derby and Executive Vice President Joseph Sooy participated in a meeting with the state Attorney General, her recently appointed counsel, and office administrator to discuss a variety of issues pertinent to the membership. Mr. Shavar Jeffries, the recently appointed counsel to her office, will oversee the Juvenile Justice Commission (JJC) on behalf of the Attorney General. President Derby and Executive VP Sooy were joined by high-ranking representatives of the NJLESA (state sergeants’ union), NJSOA (state lieutenants’ union), and PBA Local 105. From all accounts, it was a rather productive meeting.

The meeting lasted for more than an hour, and the Attorney General suggested that labor-management meetings be held at least quarterly with top JJC officials and every six months directly with her office in order to facilitate better communication and good employer-employee relations.

On January 22, 2008, Association President Scott Derby and Executive Vice President Joseph Sooy attended a seminar hosted by the New Jersey Division of Pensions & Benefits, Cigna, Aetna, and Horizon Blue Cross Blue Shield. State officials and representatives from the above three health-insurance companies gave presentations on the forthcoming changes made to the State Health Benefits Program (SHBP) by the State Health Benefits Commission (SHBC).

On December 12, 2007, the membership of the NJLESA (state sergeants’ union) voted to disaffiliate with the Fraternal Order of Police (FOP). By a margin of more than 5:1, the vote was a landslide and a clear mandate for independence. From 1978 to 2003, the NJLESA was affiliated with the N.J. State Policemen’s Benevolent Association (PBA). In 2003, the NJLESA voted to disaffiliate with the PBA for an affiliation with the FOP. On February 26, 2008, the New Jersey Public Employment Relations Commission (PERC) issued an official ruling certifying their independent status.

On Election Day — Tuesday, November 6, 2007 — nearly 83% of the candidates running in the general election for the State Senate or the General Assembly who had been endorsed by the Association in concert with other state law enforcement unions were either elected or returned to office. Click HERE for details!

On Monday, October 15, 2007, the unions representing state law enforcement personnel hosted a rally in front of the New Jersey State House (Trenton) to stand up to Governor Corzine and his administration concerning the threat to public safety posed by the current use and anticipated expansion of privately operated correctional facilities (halfway houses), as well as to reach a new collective bargaining agreement for state law enforcement officers, one which recognizes the inherent dangers faced by the state law enforcement community. For instance, state law enforcement officers, especially state correction officers, suffer from one of the highest mortality rates of any profession, exposed to assaults, riots, other violence, MRSA (deadly superbug staff infections), HIV/AIDS, hepatitis, TB, etc. Each and every day, state law enforcement officers put their lives on the line to protect the residents of New Jersey; yet Governor Corzine and his administration want state law enforcement officers to pay for the privilege.

Thousands of state correction officers, friends and family, as well as other state law enforcement personnel in the classified career service, attended. The Association would like to thank all who participated, especially several state legislators who took the time to speak at the rally in support of the state law enforcement community. Each union shared in the costs. Special thanks go out to the Teamsters, whose assistance during the rally was sincerely appreciated.