Governor Jon Corzine 1025 Maxwell Lane P109/1200 Hoboken, NJ 07030 RE: 4 PERC Nominations Governor Corzine, I am writing to ask you to withdraw the 4 nominations for the PERC Board. As you know, these 4 positions have been in hold over status for quite some time. I believe one post expired at the end of 2007. As such, you are creating a majority that will serve for the next 3 years rather one that would have been staggered out over one year of the new administration. I believe NJ needs a new direction. As I am sure you have read the NJ Commission of Investigations report dated December 2009, our public employee contracts under the collective bargaining process are fleecing the state. Most embarrassing for Hoboken, Hoboken was cited as an example of how the current collective bargaining process has condoned tremendous excesses and abuse. The PERC board sets the tone and determines the burden of proof in any appeal. We sent former Police Chief LaBruno off into retirement with a $525,000 payout on top of his 7 figure NPV retirement + health care for life. We cannot get our public employees to contribute to healthcare premiums or take a plan limited to a network or at least has a deductible above $200 per family. In 2008/2009 we spent $23,000 per employee because we have not been able to get them away from a very expensive plan. Our contract has extra days for weddings, bar mitzvahs, blood donation. As such, they accrue a tremendous amount of vacation that they take at the retirement in addition to terminal pay. We are paying out $150 to $250,000 per public safety employee who retires with 25 years or more on top of their lucrative pension.
I have reviewed the PERC website and have looked at various appeals. Many municipalities have tried to make the argument that these are dire economic times. Our population is out of work, underemployed and leaving the state. Hoboken's median age is 30 vs. the state average of 36. We have a disproportionate number of
young people who are experiencing much higher unemployment - as much as 50%. Personnel costs represent 55% of our budget. We cannot afford to pay into the pensions system to make good on these contracts. NJ comes in dead last in terms of property taxes in the country based on the The Tax Foundation - a non profit that looks at taxation across the nation. We have the highest income tax rate in our upper income bands and many of our wealthy are leaving the state and on a microcosm, Hoboken as well. If we don't impact these contracts, we cannot bring relief to the citizens of Hoboken. The PERC Commissioners burden of proof that economic conditions are severe enough to curtail increases much less wage and benefits cuts never seem to be enough. We need a PERC board that thinks differently and I think Governor-elect Christie will marshal in that group if you let him. We are in the middle of negotiating our public safety contracts. The unions are well aware that the terms of 6 out of 7 PERC Commissioners have expired. By putting forth these nominations at this time is allowing them to continue to resist necessary and prudent benefits cuts and wage freezes. I urge you to rescind these 4 nominations and allow the new administration to do so. Sincerely, _______________________________________________________