Benefit reform plan divides state Backers see $700M in savings. But state worker cuts have not been welcomed by unions, some politicians. Monday, June 12, 2006 • By TERRENCE DOPP • The Express-Times TRENTON | When three pro-union Democrats earlier this week called for a 15 percent cut in total compensation and benefits for state employees, the debate quickly spilled out of the State House confines and into the public realm. The rationale behind the proposal is simple: overtaxed New Jerseyans can no longer afford to cover the cost of providing lifetime pensions and medical benefits to government workers. Based on that argument, Sen. Stephen Sweeney, Assemblyman Paul Moriarty and Assemblyman Jerry Green want to raise the retirement age for state workers, end dual office holding and a host of other initiatives. In all, they estimated the package would reduce the total price of state benefits by $700 million. In doing so, they hope to head off Gov. Jon Corzine's proposed 1-cent increase in the state's 6 percent sales tax. The results have been explosive. At least seven of the 21 daily newspapers circulated in the state have editorialized in favor of the plan, dubbed the Bring New Jersey Back to Reality proposal. Drive-time talk radio programs have been deluged with callers taking strong stances on both sides. "Why is this catching on? Because it's reality," said Sweeney, D-3 of West Deptford, who outside of the Legislature serves as treasurer for Ironworkers Local 399 in Westville. Sweeney, who also serves as chairman of the Senate Labor Committee, said this week the resulting feud with state workers' unions is "heartbreaking." "This is not because I want to do this. I fashion it as this -- if you have a corporation that's bankrupt and going out of business, you don't increase costs," he said. Escalating benefit costs According to the sponsors, in 2003, employee benefits for New Jersey's 100,000-plus local, county and state workers cost state taxpayers $2.6 billion. In Gov. Jon Corzine's proposed $30.9 billion budget for 2007, the cost would be $4.9 billion. In addition to $1.5 billion in increased pension payments by the state, the spending plan contains no layoffs in the work force. When the budget was first unveiled, Corzine estimated a $4.5 billion gap between spending and revenue. The three legislators want to end pension padding, force employees to work 40 hours per week, get them to contribute more toward health care and examine a 401(k)-style retirement account instead of the current costly benefits. Passage would require an 11th-hour effort; the Legislature is under a June 30 deadline to approve its budget. Moriarty said he is aware of a growing public interest surrounding his package and believes the public is beginning a larger debate on how much is too much. "I can see that," said Moriarty, a South Jersey Democrat. "We're just pointing out the obvious. People have been saying this for a long time." Debate unavoidable Ingrid Reed, director of the Eagleton New Jersey Institute at Rutgers University, said debate on the plan was unavoidable. "People are screaming because it's an issue they can understand," Reed said. "People make the comparison to their own situation, which is basically what Sweeney is saying." As a university professor, Reed is technically employed by the state. She cautioned against a debate skewed unfairly against state workers. Jon Shure, president of the left-leaning think tank New Jersey Policy Perspective, said he is against the cuts. "People in government have better benefits -- health care and pensions -- than people in the private sector," said Shure, who was former Gov. James Florio's press secretary. "And there seems to be some resentment." Shure said private sector employees should concentrate on improving their own benefits rather than lashing out in anger at state workers. Isolation or cutting edge? The plan has met with instant, raucous backlash from unions in New Jersey. The Communications Workers of America, the American Federation of State County and Municipal Employees panned the package. However the 125,000-member New Jersey State Building and Trades Council endorsed it, bucking parent AFL-CIO. Sweeney's union is part of the trades council. Employee contracts do not begin expiring until 2007 and union leaders said using legislation to open them up before that time is unfair. On Thursday, a group of 50 to 100 union members picketed a news conference held by the trio of Democrats who were promoting a new Web site, stop spendingmymoney.com, aimed at eliciting public support. "I think these are three isolated guys who are making some of the biggest mistakes of their political careers," said Carla Katz, president of CWA Local 1034, the largest union representing government workers. "These are not Democratic leaders." Tough choice for lawmakers Some legislators are tiptoeing around the issue and the powerful unions. The labor organizations are considered among the most powerful political forces in the Garden State and control a rich source of votes, campaign cash and volunteers. Corzine, Senate President Richard Codey and Assembly Speaker Joseph Roberts all said they want to honor worker contracts but also said they want the Legislature to examine its options this summer. Senate Minority Leader Leonard Lance, R-Hunteron/Warren, said he considers state benefits out of line with the private sector but has also not taken a strong stance on either side. A total of 10 Republicans in both houses have signed a letter supporting the package. Political winds unclear The wild card in the dispute appears to be public opinion. Bob Master, political director with the CWA, said Friday the union had done polling of the New Jersey population but was unable to provide results. "I don't have a crystal ball," the union boss said. "We will make our case for what we believe is a strong public and legislative support for collective bargaining," he added. Moriarty said he was willing to confront the unions and any supporters they might have. "We can't avoid this anymore," he said. "If it means I'm kicked out of office for standing up for what's right, so be it." Terrence Dopp is Trenton correspondent for The Express-Times. He can be reached at 609-292-5154. © 2006 The Express-Times. Used with permission.