Teachers' Rep: We're Blamed for Trenton's Mistakes

Morristown taxpayers will save several dozens of thousands of dollars in pension costs in Fiscal Year 2012 due to the pension and health benefit reform bill recently negotiated by the state's top lawmakers, and signed by Gov. Chris Christie.

But the local teachers union representative said the bill has public employees unfairly paying the price for years of financial mismanagement by the state—and could mean fewer people consider becoming teachers.

"Many of our valued employees have already decided to retire instead of suffering any further attacks on the benefits that they have earned over their years of service," said Smitty Horton, the teachers union representative for the Morris School District.

Town taxpayers will see savings as the Morris School District (which includes Morristown and Morris Township, and which receives students Morris Plains) reduces its own pension contribution by $72,500 under the reform, according to an announcement by Christie's office. The will spend $9,117 less on pensions.

Morristown's municipal government will save $37,592. The will save $6,540, and the will save $3,885.

The reform bill requires state and local government workers who belong to the Public Employees Retirement System, as well as teachers and other education workers under their own retirement system, to pay an additional 1 percent of their salaries toward their pensions as of July 1—bringing them up to a 6.5 percent contribution. Another 1 percent would be phased in over seven years, for a total of 7.5 percent.

State and local police, as well as firefighters, must contribute an additional 1.5 percent of their salaries to their own pension funds. Local police and firefighters will be contributing 10 percent; state police will be contributing 9 percent.

The bill also moves the retirement age for new teachers and non-uniformed employees from 60 years old to 65. To be eligible for early retirement, the employees now have to work 30 years instead of 25.

The bill will have a more significant impact on the cost of health benefits, as it requires all public employees and certain public retirees to contribute toward the cost of health care benefits coverage based upon a percentage of the cost of coverage. Public employees could see current health costs at least doubled, or tripled in some cases, with increases phasing in over four years.

Both Morristown Business Administrator Michael Rogers, and schools Business Administrator Chris Kelly

Morristown Parking Authority Executive Director George Fiore had a similar opinion, calling it a "reasonable shift," in regard to moving a portion of the responsibility from the public entity to public employees. He also said he found the pension reform to be reasonable "given the state of the pension system," he said.

Horton didn't see it that way.

"If someone borrows something from you, they should pay it back," said Horton, the dean of students at . "I believe it is called 'theft' if you take something from someone and don't give it back."

And Horton said that's exactly what's happened.

"If the money that was 'borrowed' from the pension fund by [then-Gov.] Christie Whitman years ago was paid back and the state made their payments to the pension plan as the employees continuously do, the pension fund would not be in financial trouble," he said. "So, the way this played out is as follows: A) the state borrows money from the pension fund because the money was there and the fund was solvent; B) the state not only neglects to pay that money back, they decide not to contribute their required payments for about 13 years; C) the employees continue to pay their required percentage into the pension fund; and D) the governor passes a new law requiring the employees to pay more into the pension fund. This certainly doesn't sound right to me."

Although he serves as the teacher's union representative for the Morris School District, Horton said he could only give his own perspective—not that of the union overall.

"I personally don't have a problem with contributing to our health care," he said. "My concern is more with how this is an attack on our bargaining rights. Our association has made major concessions during our last round of negotiations, saving the district millions of dollars. That money was slated to go back to the taxpayers as relief, but unfortunately was deemed as surplus by the governor and thus taken from the district by the governor and therefore taken from the taxpayers."

And, the future, in Horton's eyes, is not particularly rosy, either.

"I see some major changes on the horizon. ... I also believe there will be a decrease in the number of quality candidates that are considering teaching as a career in the
future," he said.

Horton said he hopes that's not the case, "but I don't see people choosing a career where they are blamed for every financial mistake made in Trenton, especially when they have had nothing to do with any of those decisions."

Representatives from the Morristown & Morris Township Library and Morristown chapter of the Policeman's Benevolent Association declined comment. A call to the Morristown Fire Department was not immediately returned.