Legislature Turns Attention
to Other Toolkit Proposals

With last week’s enactment of the new 2-percent property tax levy cap (see separate story), the administration and Legislature will now turn their attention to the other components of Gov. Chris Christie’s proposed “toolkit,” aimed at controlling local government and school district spending.

The governor’s original toolkit included 33 specific reforms divided into four major categories: municipal and county, education, higher education, and elections. It is likely that these topics will be addressed over the balance of the summer and into the early fall. Some reform proposals may also be tackled through regulatory channels, rather than new legislation.

There may also be additional toolkit-type changes proposed. Last Thursday, Gov. Christie announced what could be considered a 34th toolkit component – limits on chief school administrator salaries, based on school district enrollment. (See separate story)

Importance of Cap The compromise on the 2 percent property tax cap, which is the focus of the toolkit, is significant. In many of the other toolkit proposals, it is clear that the tax cap acts as a limiting factor. For example, some reforms note that salary and benefit increases negotiated through the collective bargaining process could not exceed the newly established cap percentage.

For local boards, the most important tools pertain to items which enhance their ability to act with fiscal prudence in the collective bargaining process. One such reform includes a proposal to permit a public employer to implement its “last best offer” when contract negotiations and statutory impasse resolution procedures are fully exhausted. Other items include a requirement that local districts’ ability to pay be factored into impasse procedures at factfinding, as well as amending statutes related to shared services and district consolidation to preclude buyout of union contracts, capping unused sick and vacation payouts, allowing the use of furloughs by local entities, and some yet-to-be-determined initiatives addressing merit pay and reform of current tenure laws.

Proposals to require executive county superintendents to review contracts for conformance with the newly established cap seem straightforward. However, expanding this review to include collective bargaining agreements creates the concern that local boards of education will lose a measure of their current autonomy.

November Elections An additional item in the governor’s proposal provides for moving the election of local board members to the November general election. While most NJSBA members have consistently stated opposition to this idea, there is a potential silver lining. Now that the levy cap has been set at 2 percent, there appears to be some consensus between the administration and the Legislature to eliminate the vote on school budgets that fall within the new cap.

Board members should be on notice that much work remains before the toolkit is fully in place. NJSBA will be monitoring the initiatives and the potential impact on local boards of education over the next several months. As the process unfolds, the Legislature will be soliciting public input from all interested parties. The participation of local board members is crucial. In addition to questions about current proposals, board members are encouraged to suggest cost-saving ideas, either through the Association or directly to their legislators.

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