Bill to end big cash-outs advances
The measure would allow public employees to keep what they had lawfully accrued to date.
TRENTON - New Jersey's Republican governor and Democratic-controlled Legislature have long agreed that it's time to stop large end-of-career payouts to government employees for unused sick days, but there's been less agreement on how to legislate away what Gov. Christie mockingly calls "boat checks."
An Assembly committee advanced the latest proposal Thursday. The measure would end the accumulation of payouts that can reach six figures but would allow employees to keep what they have lawfully accrued.
"We will finally end the outrageously large cash payments to public workers that don't exist in the private sector and have burdened taxpayers for far too long," said Assemblywoman Pam Lampitt (D., Camden), sponsor of a two-bill package to cover union and nonunion employees. "We'll be implementing a reasonable and responsible system that in the long run benefits everyone by putting an end to these unacceptable cash payouts."
The cash-outs to retiring school administrators, police officers and firefighters, and other public-sector workers costs taxpayers hundreds of millions of dollars. Christie has estimated the tab at $825 million for accumulated sick leave payments collectively owed to workers around the state. He refers to the payouts as "boat checks" because he says they are sometimes so large that retirees could buy a boat.
Christie, who has been calling for legislation that ends the payouts for newly hired workers, vetoed a bill capping the payouts at $15,000. Legislative sponsors then knocked the cap down to $7,500, but the governor threatened to veto that as well.
Senate President Stephen Sweeney (D., Gloucester) last month offered a measure that would halt payouts for unused sick time. His bill would allow employees to roll over the time and use it for illnesses, but not cash it out. It has not had a hearing.
Testifying on behalf of her bill, Lampitt ticked off what many consider to be outrageous payouts that need to end: A former police chief in Harrison left office with a check for $305,000; the impoverished City of Camden paid $2.3 million to 20 retiring employees over four years ending in 2008; counties, towns, colleges, and school boards are straining under the weight of large payouts to longtime employees.
One Assembly bill would eliminate the cash value of unused sick time for nonunion employees. The other would allow workers to bank up to $7,500 in sick time that could be credited toward their health-insurance payments in retirement if the provision was negotiated as part of their union contracts.
The accrued time would have no cash value, per Christie's insistence.
The bills also would limit vacation carryforward to one year.
Another sponsor, Assemblyman Al Coutinho (D., Essex), said the legislation was a win for taxpayers.
"The so-called boat check will be gone, and local governments will have the flexibility they need to negotiate what works best for their community," he said.
Assemblywoman Caroline Casagrande (R., Monmouth), who voted no on both bills, said Christie had made it clear he would veto any bills containing payouts.
But Assemblywoman Linda Stender (D., Union), who voted yes, said the bills would preserve collective bargaining while eliminating a cash value to accumulated sick time.
The bills advanced in a 3-2 party-line vote.