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WHEREAS, the binding arbitration process was intended to support local government aims by arriving at award decisions that are equitable to all involved parties, including municipalities, and Police and Fire Department personnel, and taxpayers; and

WHEREAS, the binding arbitration process is mandated by the state law; and

WHEREAS, municipalities are bound by strict fiscal controls embodied in the expenditure limit and tax levy cap laws; and

WHEREAS, it is the norm rather than the exception for state approved arbitrators to award raises for police salaries at rates that exceed the annual caps; and

WHEREAS, binding arbitration awards in excess of the caps force municipalities to cut other critically needed municipal services, in order to fund salary increases, compounded by pension increases, to police and fire personnel, and costs for police and fire services continue to spiral at an unacceptable rate; and

WHEREAS, the state approved binding arbitration process is inconsistent with the State cap laws and is unfair to municipalities attempting to control property taxes through fiscal responsibility;

NOW, THEREFORE, BE IT RESOLVED, that the Governing Body of the (Name of Municipality) urges the New Jersey State Legislature to pass legislation containing substantial reforms to the binding arbitration process; and

BE IT FURTHER RESOLVED, that copies of this resolution be forwarded to our State Senator, our Representatives in the General Assembly, to the Governor and to the New Jersey League of Municipalities.





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