NEWSLETTER

New Jersey Law Enforcement

Commanding Officers Association

P.O. Box 121
Fairton, NJ 08320

(609) 774-3941

Scott.Derby@commandingofficersnj.org

NEWSLETTER

President’s Message

by Scott Derby

I would like to welcome you to the Association’s website and on-line newsletter. The website is designed to provide you with the latest in Association-related news and resources, including current information about upcoming events and pertinent developments regarding the union:

Contract Negotiations
Pension & Health Benefits
State & Federal Legislation
Public Policy
Special Notices
Calendar of Events
Documents & Forms
Links to Other Organizations & Resources

I trust you will find the website useful and easy to navigate.

Thank you for visiting, and please return often.

Should you have any questions, or if I can ever be of any assistance, please feel free to contact me.

Sincerely,

Scott L. Derby

President

(609) 774-3941

Scott.Derby@commandingofficersnj.org

“It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat.”

—President Theodore Roosevelt

Horizon’s For-Profit Plans Raise Monetary Questions

Posted August 17, 2008

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.

State Health Benefits Commission

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.

Next Promotional Test for Chief

The next opportunity to take the promotional examination for the title Director of Custody Operations 1 will be announced September 1, 2008, and State officials believe the test will be held in late January or early February. Details are forthcoming.

Renewal of Fundraising Agreement Approved with Revisions

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.

Meeting with the Attorney General’s Office

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:

Appointment of Directors in the JJC and the Attorney General’s Earlier Pledge to Appoint a Person with Substantial Law Enforcement/Custody Experience
Title 13 of the New Jersey Administrative Code (N.J.A.C.) and the Disciplinary Process and Regulations for Juvenile Inmates
Shift Overlap for JJC Officers (which had been eliminated in the State’s recently enacted budget for fiscal year 2008-2009)

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.

Public Safety Not for Sale

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.

We are opposed to the following examples of prison privatization:

Expanded Use of Privately Operated Halfway Houses
Privately Operated Facility to House Sexually Violent Predators
Privately Operated Residential Assessment Centers (RACs)

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.

Prison Privatization & the Early Release of State Prisoners

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.

Click HERE to listen to the radio ad.

Reorganization of Civil Service

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.

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.

Governor Focuses on Fiscal Health of NJ:

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

by Keith B. Richburg

Washington Post

June 22, 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.

Panel Interviews Eliminated

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.

Click HERE to read President Derby’s request to Commissioner Hayman.

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

New Contract Negotiations

The Association is prepared to negotiate and, if necessary, arbitrate a new collective bargaining agreement (CBA) with the State of New Jersey. The Association has joined the other state law enforcement unions in seeking reasonable salary compensation and the maintenance of health benefits without premium sharing. Remember, collective patience and resolve have always served the membership well, and the State has been reminded not to test the resiliency of state law enforcement officers. In any event, the membership will be kept abreast of the latest developments.

In early October 2007, PBA Local 105 entered into a tentative agreement with the Governor’s Office as to a successor CBA with the State of New Jersey, and subsequently submitted the tentative agreement to its membership for ratification.

Attached for your edification is the actual text of the tentative agreement. Upon your review, we trust, you will find it unacceptable.

On October 12, 2007, the membership of PBA Local 105 voted to reject the tentative contract agreement by a margin of nearly 17:1. According to State officials, this is the first time in the history of New Jersey that a union representing rank-and-file state employees voted to reject a contract agreement offered by the Governor’s Office and recommended by union leadership. The Association and the other unions representing state law enforcement supervisors are so proud of the position taken by the rank-and-file officers who were wise enough to see through the rhetoric and make the right decision.

On October 22, 2007, the Association’s Contract Negotiations Committee met with State officials in the Governor’s Office for the third and perhaps final time in hopes of negotiating and possibly reaching agreement, at least in principle, on a new CBA with the State of New Jersey. State officials, acknowledging the fact that their contract offer to PBA Local 105 had been resoundingly defeated and the fact that the NJLESA (state sergeants’ union) had officially filed for interest arbitration, suggested that an impasse in collective negotiations had been reached and that the Association should consider following the course taken by the NJLESA.

On December 19, 2007, the New Jersey Public Employment Relations Commission (PERC) selected by lot Joel M. Weisblatt to serve as the presiding arbitrator in the interest arbitration between the NJLESA and the State of New Jersey. The dates of March 17 and April 14, 2008, were originally scheduled for arbitration proceedings or mediation. Although the former date was later cancelled, the latter took place as scheduled. Two (2) dates for mediation were then scheduled — June 2 and 27, 2008. While the NJLESA met with the arbitrator on June 2, 2008, its meeting with the arbitrator scheduled for June 27, 2008, has been cancelled. The Association has agreed to provide in-kind assistance to the NJLESA, including cooperation from its legal counsel.

Meanwhile, James W. Mastriani was selected at PERC to preside over the interest arbitration between PBA Local 105 and the State of New Jersey. PBA Local 105 met with the arbitrator on June 5 and 23, 2008. PBA Local 105 has scheduled meetings and/or proceedings with the arbitrator as follows:

July 8, 2008

September 2 and 16, 2008

October 16, 17, 22, and 24, 2008.

Of course, the membership will be kept abreast of the latest developments.

On September 20, 2007, the Association’s Contract Negotiations Committee met again with State officials in the Governor’s Office to exchange contract proposals.

On August 20, 2007, the Association’s Contract Negotiations Committee met with State officials in the Governor’s Office for the purpose of negotiating a new CBA.

On August 7, 2007, Association President Scott Derby and Executive Vice President Joseph Sooy met in Trenton with union officials from PBA Local 105 and the NJLESA (state sergeants’ union) to discuss current contract negotiations with the State.

On July 23, 2007, the Association’s Executive Board was invited to attend a meeting hosted by the Governor’s Office and the New Jersey Division of Pensions & Benefits for “a presentation on the current funding status for post retirement medical benefits for public employees.”

On June 25, 2007, the Association’s Executive Board attended a presentation by the Governor’s Office and the New Jersey Division of Pensions & Benefits regarding the State’s newly proposed health benefits plan (PPO). Implementation date of the new plan for civilian State employees has been moved back from January 2008 to April 2008. The Governor’s Director of Employee Relations and the Deputy Director of Pensions & Benefits attended both meetings.

Unionizing the Chiefs

On March 8, 2007, the Association filed its petition with the New Jersey Public Employment Relations Commission (PERC) to collectively organize the Chiefs in the New Jersey Department of Corrections, Juvenile Justice Commission, Division of Parole, and Department of Environmental Protection (DEP). The petition was subsequently amended to remove from consideration such titles in Parole and the DEP, as there was no substantive interest in the latter two agencies.

After the Association met with State officials at PERC in the wake of the filing, the next milestone in the Association’s campaign to unionize the Chiefs was supposed to be June 1, 2007, the original deadline for written submissions by all parties to PERC. However, the Governor’s Office requested an extension; and on the advice of legal counsel, the Association granted the request. It is no secret that PERC would prefer a settlement in the matter. Association President Scott Derby had been in daily contact with the Governor’s Office, and the Governor’s Office had been promising a settlement proposal. Notwithstanding, the members present at the July 2007 general membership meeting voted to give the Governor’s Office until July 23, 2007; and despite its repeated promises to the contrary, the Governor’s Office announced on July 31, 2007, that there would be NO settlement offer whatsoever with respect to the Chiefs, adding that whatever merit-based salary raises recommended and approved for the Chiefs would be held in abeyance pending the final disposition of the petition. Nonetheless, PERC imposed a new deadline on all parties, including the Governor’s Office, for the submission of legal briefs. Our legal counsel then prepared and submitted his comprehensive brief in support of the Chiefs, and we received the State’s in turn. We then completed a judicious review of the State’s brief and its enclosed certifications, ultimately preparing and submitting written rebuttals accordingly. On March 17, 2008, the Association received a Notice of Hearing signed by Arnold H. Zudick, Director of PERC. The Notice provides:

“[A] formal hearing is required to resolve the relevant legal and factual issues.”

“Hearing Officer Deirdre K. Hartman has been assigned to conduct a formal hearing in this matter. See N.J.A.C. 19:11-6. The hearing will be conducted on May 12, 2008, at 9:30 a.m., at the PERC Offices, 495 West State Street, Trenton, New Jersey.”

“PLEASE NOTE that a prehearing conference will be conducted on May 6, 2008 at 10:00 a.m. at the above-named offices.”

“The parties have the right to appear at such hearing in person, by counsel, or by other representative, to call, examine and cross-examine witnesses, and to introduce into the record documentary or other relevant evidence, except that the participation of any party shall be limited by the Hearing Officer.”

In a 2-page letter to PERC hearing officer Deirdre K. Hartman dated March 27, 2008, Senior Deputy Attorney General Sally Ann Fields writes in pertinent part:

“The composition of the employees is materially different from the list provided to PERC on March 30, 2007 at the inception of the processing of the above-captioned petition. This changed composition has resulted from retirements and the death of one individual. ... .”

“Accordingly, based upon the changed composition of employees who serve in the title at issue in the instant petition, the State respectfully requests that PERC conduct a new card check procedure to determine whether there is the requisite showing of interest ... . The State urges that this new card check procedure be conducted before any hearing takes place in this matter to determine whether a hearing is necessary. Requiring the State to participate in a hearing based upon outdated employee information would certainly violate at least the spirit of the Commission’s rules. Moreover, since this matter has been pending for more than a year, this updated card check procedure must be conducted to insure that unnecessary resources are not expended in holding a hearing before an accurate showing of interest is determined.”

At the prehearing conference, on May 6, 2008, the Association was represented by Association President Scott Derby, Association Executive Vice President Joseph Sooy and Association general counsel Mario Iavicoli, Esq. There, PERC rejected the State’s request, or motion, that a new election, or card-check procedure, be conducted. This should be considered a positive development in advancement of the Association’s efforts to bring economic relief and employment justice to a title long deserving of both. Furthermore, PERC contended that the matter of Captains in the State Police and their petition to unionize might be dispositive in this case. A ruling in that matter is anticipated, now that final briefs have recently been submitted to PERC and proceedings, concluded. Therefore, PERC rescheduled the Association’s May 12, 2008 hearing for formal proceedings on July 31 and August 5 and 6, 2008. However, in correspondence dated July 1, 2008, PERC hearing officer Deirdre K. Hartman rescheduled the proceedings for September 30 and October 1, 2008. In earlier correspondence, she writes:

“The State shall proceed first and I request the parties submit witness lists one week prior to the hearing. Any prehearing motions similarly shall be filed one week prior to the hearing.”

Now, in correspondence dated July 31, 2008, she sets the proceedings for September 30, October 3 and, if necessary, October 8, 2008.

The membership will be kept abreast of the latest developments. Any Chief willing to testify before PERC in the Association’s behalf should contact Association President Scott Derby at (609) 774-3941 or at Scott.Derby@commandingofficersnj.org or Associate Vice President Craig Stellman at (215) 200-0044 or at crgstell@comcast.net.

Remember, Captains in the Department of Corrections, State Parole Board, Juvenile Justice Commission (JJC), and Department of Environmental Protection (DEP) had been in the same position as the Chiefs before 1989. Captains then had not been collectively organized and had thus not been entitled to the same salary raises, clothing allowances, and health benefits as their subordinates. Today, thanks to unionization, we are so entitled.

The Association may be on the verge of achieving something very special, historically significant in fact, in terms of obtaining for the Chiefs something they have long deserved yet never enjoyed — economic security and employment stability. The Association remains confident that with the membership’s collective resolve, both will be achieved. No longer will the Chiefs go begging for one-time SAC actions but will receive all those things to which they are rightfully entitled.

“The American Labor Movement has consistently demonstrated its devotion to the public interest. It is, and has been, good for all America. Those who would destroy or further limit the rights of organized labor — those who cripple collective bargaining or prevent organization of the unorganized — do a disservice to the cause of democracy.”

“Our labor unions are not narrow, self-seeking groups. They have raised wages, shortened hours, and provided supplemental benefits. Through collective bargaining and grievance procedures, they have brought justice and democracy to the shop floor.”

—President John F. Kennedy

“If any man tells you he loves America, yet hates labor, he is a liar. If any man tells you he trusts America, yet fears labor, he is a fool.”

“There is no America without labor, and to fleece the one is to rob the other.”

“Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”

—President Abraham Lincoln

“It is essential that there should be organization of labor. … Capital organizes and therefore labor must organize.”

“I am a believer in unions.”

—President Theodore Roosevelt

Association Recognized as Sponsor of Brie’s Buddies Golf Classic

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.

Meeting with the DEP

On April 1 and 8, 2008, Association President Scott Derby and Executive Vice President Joseph Sooy attended meetings with the New Jersey Department of Environmental Protection (DEP) to discuss the State of New Jersey’s proposed budget for fiscal year 2008-2009, as well as the DEP’s current 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 are currently scheduled to go out May 6, 2008. Though several existing vacancies in law enforcement titles will be eliminated and overtime, curtailed, those presently serving in the State Park Police and the Division of Fish & Wildlife’s Bureau of Law Enforcement are not expected to be among the layoffs at this 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.

Election of Association Officers

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

Scott Derby

Executive Vice President

Joseph Sooy

Vice President

Matthew Kyle

Treasurer

Joseph Maddock

Secretary

Kelly Gibson

Sgt.-at-Arms

James Collins

VP for Parole

Anne McGrath

VP for Retirement Affairs

Donald Coughlan

Associate VP

Craig Stellman

The installation of the newly elected officers took place at the monthly general membership meeting 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.

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.

PBA Wins PERC Elections

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

PBA Local 105 — 2,568

FOP Lodge 200 — 1,561

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

New Jersey State PBA — 163

New Jersey State FOP — 43

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.

Name Change Finalized

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.

Corzine: Budget Situation Is Ugly Now, and May Get Worse

Posted March 16, 2008

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.

JJC’s Executive Director

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.

Meeting with the Attorney General

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.

Changes to State Health Benefits Program Forthcoming

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).

Click HERE for the latest SHBP publication

Click HERE for the SHBP’s 2008 comparison chart & summary for active state employees

Click HERE for the SHBP’s 2008 comparison chart & summary for retirees

Highlights of the impending changes are as follows:

There will be a special open enrollment period from Monday, January 28, to Friday, February 15, 2008.
Effective April 1, 2008, the SHBC has eliminated AmeriHealth HMO, Oxford HMO, Health Net HMO, Traditional and NJ PLUS, except as otherwise stipulated, leaving only two (2) HMOs available — Aetna and Cigna.
Retired state law enforcement officers enrolled in the Traditional plan who served in unionized titles up to the effective date of their retirement will be transferred to NJ DIRECT 10; and active state employees in NJ PLUS other than unionized state law enforcement officers will automatically be transferred to NJ DIRECT 15 unless they opt into either Aetna or Cigna.
Unionized state law enforcement officers in one of the HMOs to be eliminated who do not voluntarily opt into either Aetna or Cigna during the special open enrollment period will automatically be transferred to NJ PLUS and remain there, at least until such time as their respective collective bargaining agreements are settled. Those already enrolled in Aetna, Cigna, or NJ PLUS do not have to switch medical plans.
Until further notice, all copays on medical services and prescription drugs will remain the same for unionized state law enforcement officers.

Efforts to Divide State Law Enforcement Community Opposed

Click HERE for details!

Another State Law Enforcement Union Goes INDEPENDENT!

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.

Joint Union Endorsements of Candidates for State Legislature

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!

Joint State Law Enforcement Rally:

Thousands Turn Out at New Jersey State House (Trenton)

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.