Nearly every New Jersey municipality reviewed in a recent audit ignored state laws designed to curb employee benefit costs and avoid cushy payouts to government workers, in at least one case wasting nearly $200,000 of taxpayer money.
The Office of the State Comptroller probed 60 municipalities — selected based on their budgets and population sizes — and found 95% violated measures approved in 2007 and 2010 that were designed to curb employee benefit costs and avoid cushy payouts to government workers.
Laws that were intended to lower property taxes are being ignored and violated in a staggeringly high number of municipalities.Walsh said the most egregious rule-breaking included towns paying employees for unused sick time every year as bonuses, when state law mandates those benefits be paid only at retirement. Towns also offer costly retirement payouts that exceed state caps, his office’s review found.
Spokespeople for Gov. Phil Murphy and state Senate President Nick Scutari each said their offices would review the report and recommendations. In 2010, lawmakers expanded payout restrictions to all employees hired from that point on. The laws also bar employees from rolling over more than one year’s worth of vacation leave.
The comptroller’s office only analyzed municipal governments and did not include school districts or other public bodies, like water commissions or sewer authorities. Walsh predicted those sorts of government entities were also likely making illegal payments.
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