Bill

Bill > A4920


NJ A4920

NJ A4920
Requires State aid reduction to municipalities and school districts by amount of accumulated absences paid to employees upon their retirement.


summary

Introduced
06/01/2017
In Committee
06/01/2017
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill would require each municipality to report to the Director of the Division of Local Government Services annually, as part of its budget, the amount paid by a municipality to its employees for accumulated absences upon their retirement in the previous budget year. The bill also would require the State Treasurer to reduce the total amount of financial assistance provided to each municipality in the next succeeding State fiscal year from Consolidated Municipal Property Tax Relief Aid, Energy Tax Receipts Property Tax Relief Aid, Extraordinary Aid or Transitional Aid to Localities, or any combination thereof, by the amount of those unused sick leave payments. Similarly, the bill requires that the Commissioner of Education reduce a school district's State aid by the amount paid to the district's employees for accumulated absences upon retirement, as identified in the district's most recent annual audit. The purpose of this bill is to ensure that a municipality or school district does not use State aid as a means to pay its employees for egregious amounts of accumulated absences accrued over long careers in government. The sponsor believes that if municipalities and districts choose to have policies that require payment for accumulated absences at the end of an employee's career, the property taxpayers of those entities should cover those costs.

AI Summary

This bill requires municipalities and school districts to report the amount paid to their employees for accumulated absences upon retirement, and mandates the state to reduce state aid to those entities by the same amount. The purpose is to ensure that taxpayers, and not state aid, cover the costs of large accumulated leave payouts when government employees retire. The bill applies to Consolidated Municipal Property Tax Relief Aid, Energy Tax Receipts Property Tax Relief Aid, Extraordinary Aid, Transitional Aid to Localities, and state school aid.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 06/01/2017)

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