Mayor: Cap Needed on Payouts, Not Broad Sweeps

After reviewing Gov. Chris Christie's , Morristown Mayor Tim Dougherty said he supported the concept–to a point.

However, he said negotiations between municipalities and their employees would be his preferred approach, rather than eliminating payouts entirely.

"It is significant what we do pay out," Dougherty said during the Dec. 13 Town Council meeting. "I do agree with the governor that there needs to be something done ... But, we should negotiate the contracts.

"I support the concept, but there should be a cap," he said.

At his recent press conference, Christie called on the Legislature to take action during the remaining days of the lame duck session to do away with payouts. The Legislature has approved a $15,000 cap on the payouts and Democrats have proposed scaling it back to a $7,500 cap, but Christie has argued they should be scrapped entirely.

Liabilities for unused sick and vacation day benefits total more than $825 million statewide, the governor's office said Dec. 9.

Morristown would owe current public employees $2,065,263 for unused sick and vacation time if they were to leave without using the days, according to the New Jersey Department of Community Affairs; the average home would contribute $327.18 in taxes toward that amount.

Currently, an employee in Morristown would receive 25 percent of their accumulated sick time should they resign in good standing with the town. An employee would receive 40 percent of their accumulated sick time should they retire. Accumulated vacation time for that year (and maximum possible 15 days from the previous year, if rolled over) is given, as well.

Dougherty said, between 2009 and 2011, Morristown has paid out approximately $500,000 in sick and vacation days. "It adds up," he said.

However, the mayor noted something he said many people might not realize. "The police and fire departments have no Social Security, no Disability [insurance].

"It's not just a broad sweep," Dougherty said. "These things have to be done through negotiations."