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Union givebacks keep tax increase at bay

News | Thu, 10/06/2011 - 11:15 am | Updated 28 weeks 6 days ago | Read 1201 | Commented 0 | Emailed 0
Tags: Ewing, health benefits, propery taxes, unions

By Tony Wilson

Last May, faced with the new state-imposed 2 percent cap on property taxes, Ewing Business Administrator Jim McManimon asked employee unions already under contract to either accept that 2 percent mandate or “give back” in other areas such as health benefits or vacation time.

So how did he do?

According to McManimon, six of the town’s eight unions agreed to contribute 1.5 percent of their salaries to help pay for health benefits; with only the two police units refusing. The holdouts, the Patrolmen’s Benevolent Association and the Superior Officers Association, represent all 69 township police officers.

While still working under 6-year contracts that won’t run out until June 30, 2014, the two police unions, instead of paying a portion of their health care, agreed to accept the township’s decision to lay off six patrol officers and two captains and the elimination of positions held by two retired officers, McManimon said.

However, he noted that once the current PBA and SOA contracts expire in three years, all police officers must begin paying the 1.5 percent for health care. “That’s the law,” he said.

By accepting the cutback in personnel, McManimon said the police department has been operating “much leaner in the office” without a significant negative impact on public safety.

“We’re working with the number that we have and hopefully working smarter,” he said. “All of my sergeants and patrol officers are on the street.”

One of the township’s non-uniformed unions, represented by the International Brotherhood of Electrical Workers, agreed to give back three holidays that most workers in the private sector never get, Lincoln’s Birthday, Columbus Day and Election Day, said McManimon.

“As the contracts come up, those holidays will be on the table for the other unions,” the administrator added.

McManimon said he and Mayor Bert Steinmann decided early on not to exercise an option that all New Jersey municipalities have: that of asking the voters for permission to increase their tax bills by more than the 2-percent ceiling. Earlier this year, municipal leaders in 14 towns across the state reportedly asked the voters to authorize such a tax hike. All but two responded with a resounding no, however.

“If we do that here, they’ll turn it down – as they should,” McManimon said. “We’ve got to tighten the ship and that’s what we’re doing.”

“We’re not contemplating going over (the 2 percent),” Steinmann said. “We will absolutely live within our means.”

Ewing leaders are still operating under hiring restrictions imposed in March by the state Local Finance Board in giving the township permission to impose an emergent tax increase to clear a deficit created during the previous township administration.

Until the town is in “better position” financially, “we’re not anticipating hiring any new personnel,” Steinmann said.

The mayor was “optimistic” that the township’s economic outlook will improve over the next four years with prospects for development at the former General Motors and Naval Jet Propulsion sites off Parkway Avenue and new ratables in the works along Olden Avenue, as well as other areas of the township.

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