Quality Public Education for All New Jersey Students

 

 
     Property Tax Reform, Special Legislative Session & School Funding
9-20-06 Coverage of the benefits & School Funding Jt Comm hearings 9-19-06
Educating disadvantaged kids always costs more, state is told - Star Ledger State unions warn: Don't blame us- Star Ledger

Hands off pensions, workers tell panel - Herald News

N.J.'s public employees adamant: no benefit cuts They pack hearing on reforming taxes Posted by the Asbury Park Press on 09/20/06

Educating disadvantaged kids always costs more, state is told

Wednesday, September 20, 2006

BY DUNSTAN McNICHOL

Star-Ledger Staff

As they wind down work on a new formula to distribute billions of dollars in state school aid, state legislators heard yesterday from two experts who warned that meeting the needs of poor students will always be pricey.

"We know that school districts with many students who are economically disadvantaged or have English as a second language have to spend more to achieve the same performance," said John Yinger, a Syracuse University professor who has prepared school cost estimates for New York, Maryland and other states. "That's a very well-documented fact."

In New York, for instance, Yinger said studies found it costs twice as much to provide the same level of public education for typical students in disadvantaged communities as it costs in wealthier suburbs, where students have fewer economic or social disadvantages.

Driving the higher costs, he said, are expenses for health care, special tutoring and incentives to attract and retain teachers, which wealthier communities do not face.

Jay G. Chambers, senior research fellow and managing director of the education program at the American Institutes for Research in California, echoed Yinger's projections.

Chambers' study of public school costs in New York last year found the $31 billion spent on public schools there in 2001 was at least $6 billion less than was needed to give every school the resources needed to achieve state education standards.

The two experts have not analyzed spending in New Jersey and offered no particulars for members of the Joint Legislative Committee on Public School Funding working on a new state aid formula.

The state Department of Education three years ago conducted a study of necessary costs that found the $16 billion being spent at that time fell about $500 million short of what was needed to support all schools, but officials have refused to release the study.

Sen. John Adler (D-Camden), a co-chair of the legislative committee who is directly involved in the effort to rewrite the school funding formula, said he recognizes it will likely require additional spending. But he said the goal will be to ensure more state aid is sent to suburban communities -- whose school aid has been frozen for five years -- and slow the growth of the overall cost of public schools. The new formula is scheduled to be unveiled next month, he said.

"We have to spend it more intelligently," he said. "We may find that some districts are spending more than they really should."

Dunstan McNichol covers state government issues. He may be reached at dmcnichol@starledger.com or (609) 989-0341.

State unions warn: Don't blame us

Wednesday, September 20, 2006

BY JOE DONOHUE

Star-Ledger Staff

With unionized state workers kicking off salary talks with the Corzine administration today, labor leaders warned legislators yesterday to leave any fringe-benefit changes to the collective bargaining process.

"We are not going to allow our members to be made scapegoats for the fiscal problems of the state," said Robert Master, mobilization director for District 1 of the Communications Workers of America, the largest state workers union. Contracts with CWA and other state worker unions expire June 30.

Last night at Clifton High School, about 300 people, mostly union members, attended a hear ing before a special legislative committee studying benefit reforms as a way to ease property taxes. Like Master, union members representing state workers, teachers and police strongly urged lawmakers not to force givebacks.

"We are not the problem," said Joyce Powell, president of the New Jersey Education Association, as dozens of union members cheered and whistled.

However, groups that have to pay the benefits, such as the New Jersey State League of Municipalities and the New Jersey School Boards Association, urged the panel to consider all cost-cutting options.

Assemblywoman Nellie Pou (D- Passaic), the committee co-chairwoman, said lawmakers realize that some issues will be best handled at the bargaining table while others, like curbing abuses, warrant legislative action

Hands off pensions, workers tell panel
Wednesday, September 20, 2006





CLIFTON -- Dozens of union officials and members called on legislators to hold off from tinkering with the state's public benefit systems during a hearing at Clifton High School Tuesday evening.

A legislative committee examining how to reduce New Jersey's unwieldy property taxes by reforming public employee pensions and benefits sponsored the forum. The majority of the night's roughly 40 speakers, however, focused on the need to preserve worker benefits.

"I don't think balancing the budget on the backs of state workers is appropriate," said Daniel Bergin, of the Passaic County Probation Officers Association, to rowdy applause from about 200 audience members. "We can't have good employees without good benefits. "

Union representatives from the school, police, health and transportation sectors repeatedly told committee members that the pension system's $18 billion debt is because of under-funding by past state officials, not their benefits.

"Some of the problems created today should have never been allowed," said Helen Berkenbush, a retired Clifton teacher. "Politicians will never show restraint unless it is clearly stated on the wall."

The committee's six members solicited testimony on the topic as part of a special session on property tax reform. Three other committees are examining school funding, municipal-service sharing and whether to hold a constitutional convention on property taxes. They must craft proposals on the reforms by Nov. 15.

Assemblyman Thomas Giblin, D-Clifton, a member of the committee, selected Clifton High School to hold the hearing. Another public comment session will be held in South Jersey in the coming weeks, according to Assemblywoman Nellie Pou, D-Paterson, committee co-chair.

The governor has called for a 20 percent cut to the $20 billion collected in state property taxes. Half of that total currently goes to school funding, with the rest mostly funding municipal services. In 2005, the average property tax bill in Passaic County was $6,039, with Wayne residents averaging the highest bills and Paterson homeowners the lowest.

The state pension system is $18 billion short of being fully funded, mostly because of past governors' reduced contributions to balance the state budget. Municipalities now must make increasing annual contributions to the system, which has resulted in higher property taxes in many areas.

"We welcome the review of the pension system," said Clifton Mayor James Anzaldi who was one of several municipal administrators calling for a review of public benefits. "There are many ways for the costs to be reduced."

But committee members have come against significant hurdles in figuring out how to squeeze savings out of the state's costly benefits system. An actuary told members that a proposal to create a 401(k) type system will not create any substantial savings for at least 10 years. Pou has said that state law bars changes to the pensions of those who have been vested for five years, though some Republican committee members disagree.

Given the complexity of the topic and the nature of the testimony, it is unclear how much comments from the public forum will affect lawmakers' decisions. But Pou said all input was relevant.

"We have a very intellectual group of citizens that clearly have new ideas," said Pou during an interview earlier Tuesday. Pou said it was too early to discuss concrete proposals coming from the committee, saying they were still digesting collected information.

Frustrated by the committee's pace, Republican members said they are working on their own measures, which will be proposed in October if the Democrats' proposals don't go far enough.

"New Jersey has 8.5 million residents that we have to answer to, and they are choking on property taxes," said Assemblyman Kevin O'Toole, R-Wayne. "This is an area ripe for reform."

Pou defended their work. "I don't know what we could have done to move this any faster, quite honestly," she said.

The committee has met weekly since it began work in August. It will conclude its solicitation of testimony by mid-October.

N.J.'s public employees adamant: no benefit cuts

They pack hearing on reforming taxes

Posted by the Asbury Park Press on 09/20/06

BY JONATHAN TAMARI
GANNETT STATE BUREAU

CLIFTON — A legislative panel aiming to ease New Jersey's property taxes hit the road Tuesday to hear from the public for the first time, but the meeting featured familiar Trenton faces, interest groups and arguments.

Members of labor unions representing teachers and public workers predominated in the Clifton High School audience. They arrived and left on buses, showing their numbers with purple and red shirts and hats reading, "No justice, no peace."

They delivered standing ovations and blew whistles as their representatives defended their pensions and health benefits.

Officials for towns and school boards, meanwhile, called for more flexibility to negotiate benefit changes and save money.

Jaqui Greadington, president of the East Orange Education Association, said workers have earned their benefits. "It is unconscionable to even consider cutting the benefits of current or future employees" unless the state finds its own efficiencies, she said.

She said the rising costs of pensions and health benefits are a result of past state mismanagement — she cited years of skipping full payments to the pension funds. Workers shouldn't bear the brunt of fixing those problems, she said.

"We are grappling with what is largely a self-inflicted wound," Greadington said.

The hearing ended with testimony from Elizabeth Davies, a Garfield resident who said she rents a home and lives paycheck to paycheck. She said that taxes in New Jersey are "ridiculous" and that unions "have a stranglehold on government."

"Some of us, we make do with what we have," Davies said, noting her health care copays are $25. "There needs to be some give and take here."

Pensions and health care are two of the fastest-growing government expenses. Critics, including some lawmakers and municipal and school administrators, have said the state must control those costs to contain property tax increases.

Public employee benefits are one of four areas lawmakers are examining in an effort to curb taxes.

Private carriers suggested

Marie Hakim, president of the Clifton Board of Education, said the State Health Benefits Plan prevents cost-saving negotiations on employee premiums, copayments and deductibles. She said her district saved $1.5 million by moving to a more flexible private carrier in 1996 and urged lawmakers to allow similar flexibility in the state plan.

The hearing Tuesday marked the first opportunity for citizens and interest groups to offer their opinions on health benefits. Every speaker over the hearing's first 90 minutes had ties to public entities or labor unions or were current or former public workers.

Maureen Taffe, a library director in Hackensack, said she took her first public job because of the promise of generous benefits and has always contributed her share to her pension.

When she hears discussion of cutting benefits, "I die," Taffe said. "I am so afraid and so concerned that I am not going to get my pension the way I planned."

Helen Berkenbush, a retired school employee, said the state should look to save by cutting back benefits for elected officials, not rank-and-file workers.

"In my opinion, elected persons are not employees," said the Wayne resident.

Jonathan Tamari: jtamari@gannett.com