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April 24, 2014

Re:   Update on Interest Arbitration Cap

Dear Mayor:

It has been a month since the Governor and the State Senate took action to extend the strict 2% cap on interest arbitration awards.  Since the cap has expired, there have been 74 Interest Arbitration filings, numerous editorials calling for the extension, and two press conferences urging for the Assembly to quickly take action.  At this time, the Assembly is next scheduled to come back to Trenton for a voting session on Thursday, May 22nd. 

Local leaders need predictability in putting their budgets together, especially considering that in the overwhelming majority of municipal budgets the single largest expense is for Public Safety wages.  The unnecessary delay of extending the Interest Arbitration cap adds uncertainty and unpredictability, and quick action is warranted.  Unless the cap is reinstated, an unelected, randomly selected arbitrator can dictate local spending and force elected officials to rearrange local priorities.

We urge you to join us as we re-double our efforts to assure the immediate extension of the interest arbitration cap.

Questions on this legislation can be directed to either Lori Buckelew at 609-695-3481 or x112 or Mike Cerra at 609-695-3481 x120 or

Very truly yours,

Suzanne Walters
President, League of Municipalities
Mayor, Stone Harbor
Wilda Diaz
Chair, League Management Reform Committee
President, New Jersey Urban Mayors Association
Mayor, Perth Amboy






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