Munoz: Passing Christie Proposals Will Avert Local Layoffs

Assemblywoman Nancy Munoz (R-Summit) said passage of Gov. Chris Christie's pension reform and public employee benefits proposals will avert the need of local layoffs in light of the local aid cuts in the governor's proposed budget.

Munoz, who represents Westfield, said the bills, which the governor is touting as a "toolkit" for local officials. The bills will require public employees to contribute to health care costs and change the state's public employee pensions structure, including requiring future retirees to pay towards health care. Munoz, a co-sponsor of the package, is confident of legislative package today.

She said the passage of the proposals, which Christie is expected to sign quickly, would be able to allow for contract renegotiations to permit the various provisions of the laws to take effect locally. Westfield schools have recently implemented a contract requiring a co-pay for health care.

"The governor is hoping that the districts may be willing to renegotiate," Munoz said. "Either you renegotiate or lose staff. This may be a way that some of the districts that are locked into the four to five percent increase range can save jobs."

Munoz also said she is in favor of Christie's proposed constitutional amendment capping local property tax increases at two and a half percent, a change from the current four percent cap. She said the amendment, which would require voter approval, will allow residents to save on taxes in the long term.

When asked about local concerns that the cap would limit residents from deciding to increase taxes more in school budgets during the April school elections, Munoz said Christie is providing room to handle larger tax increases. She said the amendment will allow districts to propose a second budget referendum question each year to seek voter approval to raise over the two and a half percent cap.

"He is trying to provide the tools to give the towns flexibility," Munoz said of Christie.

Munoz cautioned that the cuts in state aid to school districts and municipalities could change during the legislative process. Currently Westfield is slated to receive a $4.22 million cut in state education aid and a in municipal aid. The Board of Education is meeting on Tuesday to make cuts to the proposed school budget in light of the governor's proposal.

Munoz said it is possible the legislature could restore money to the local aid budgets during negotiations before the budget is passed in June. Munoz' district Assembly colleague, Westfield Republican Jon Bramnick, has challenged the Assembly's Democratic majority to find the money to restore the cuts.

Munoz said Christie's budget does not touch aid to school districts for special education programs, along with debt service funds and pension benefits. In addition the aid covering Social Security benefits for local school districts is not being cut by the state.

In comments similar to other Republican leaders, Munoz characterized the budget proposal as a "shared sacrifice" between state and local leaders. She said Christie inherited a budget gap and is trying to plug a hole. The governor's proposed budget includes cuts to the operating budgets of state government departments.

"I support our governor," Munoz said. "There is no money in Trenton. We can't borrow money."

Munoz said she is hoping the budget will be able to change the business environment in the state. She said Christie's proposed reforms on public employee benefits will lower property taxes and this should help businesses come into New Jersey. Christie has also announced plans to change the state's regulatory structure, appointing Lt. Gov. Kim Guadagno to chair a task force reviewing regulations.

Munoz said that as she has been traveling the state, she has been hearing support for changes to the budget by Christie. She said residents are looking to the governor for change in how the state is operated.

"What I have been hearing around the state is 'we elected him to make tough decisions and he should make them,'" Munoz said.