News Flash

Legislative Advocacy

Posted on: September 24, 2018

2% Interest Arbitration Cap

As you know, despite overwhelming support from municipal and county officials and the business community, and conclusive evidence for an extension, the Legislature and the Governor failed to act by December 31, 2017, to renew the 2% cap on interest arbitration awards. Because contracts typically expire at the end of the calendar year, the impact of the failure renewal will begin to be felt as municipalities begin to negotiate new contracts this year and through the spring and summer of 2019.         


The temporary 2% cap on police and fire arbitration contract awards proved to be an effective tool to control increasing salary costs and provide a solution to assist local governments in keeping property taxes down and costs under control. It is important to note, that although the cap on Interest Arbitrations has expired the 2% property tax levy cap remains in effect.  


If the cap on interest arbitration is not renewed, while the 2% property tax levy cap remains in effect, municipalities will be forced to reduce or eliminate municipal services in order to fund interest arbitration awards. We urge you, particularly if you have contracts that expire on December 31, to demonstrate to your Legislators what the impact will be on your budget, on other services provided to your constituents, and on local property taxes. 


We urge you to pass a resolution urging the State Legislature and Governor to extend the 2% cap on Police and Fire Arbitration Contract Awards.


For a copy of the Resolution Urging the State Legislature to Extend the 2% Cap on Police and Fire Arbitration Contract Awards: WordPDF



•    Lori Buckelew, Sr. Legislative Analyst,, 609-695-3481, x112.

•    Michael F. Cerra, Assistant Executive Director,, 609-695-3481, x120.

Facebook Twitter Google Plus Email

Other News in Legislative Advocacy