Early Retirement, Later Costs

Yesterday, State Treasurer David Rousseau told the Assembly Budget Committee that the Governor's plan to entice state workers into early retirement would save NJ taxpayers $136 million this year and $161 million next year - IF it is approved by May 15th. That's unlikely to happen.

While we support the Governor's effort to reduce the government's payroll, New Jersey has been down the road of early retirements before. Multiple times, in fact. The result has always been the same - workers take the incentive and taxpayers pay retirees more money than they would have in retirement. Then, the now-vacated positions are filled in short order, meaning the size of government is not reduced.

Governor Corzine promises this plan will be different, because the Administration will not fill more than 10% of vacated positions. However, the Gov cannot dictate that to future Governors or future legislatures. Taxpayer protection beyond this Governor would be minimal.

Corzine is correct when he says that the alternative, layoffs, is nearly impossible because of current civil service laws. In our opinion, that's a great argument for reforming those civil service laws and not for trying the same failed policy again.

Fortunately, there's still time.