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August 4, 2010

RE:  August 4, 2010

RE:   Governor signs S-1804 - Permitting Special Emergency Appropriations for Accumulated Absence Payout upon Retirement or Layoff

Dear Mayor:

Governor Christie recently signed S-1804, which would permit municipalities to adopt an ordinance authorizing special emergency appropriations for the payment of contractually required severance liabilities, resulting from the layoff or retirement of employees.   P.L. 2010, c. 46, takes effect immediately.

In light of the pension reforms recently enacted and those discussed in the press, municipalities are experiencing an increase in unanticipated retirements.  This law is simply a tool for municipalities to use when preparing their municipal budget.  Given the unique circumstances facing municipalities, this permissive law will allow municipalities to meet the needs of their community.

We thank the sponsors, Senators Kyrillos and Beck, Assemblyman Coutinho and Assemblywoman Spencer, and Governor Christie for recognizing municipalities’ needs to have options in addressing their fiscal responsibilities.

The Division of Local Government Services will be issuing a GovConnect notice on this shortly.  If you have any questions or need additional information on P.L. 2010, c. 46 please contact Lori Buckelew at or 609-695-3481 x112.

Very truly yours,

William G. Dressel, Jr.
Executive Director





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