Republican Kean, Democrat Sweeney: We'll Help Shrink State Government

Members of the Morris County Chamber of Commerce Tuesday heard tough talk on the state’s financial woes from two New Jersey Senate leaders who said they were determined to pass legislation that would reduce the size and cost of state government.

Senate President Steve Sweeney of Gloucester County, a Democrat, and Senate Minority Leader Tom Kean Jr., a Republican whose district includes four Morris County towns (Chatham Township, Harding, Long Hill and Madison) said bills reforming the state’s pension and health care systems, sharing services among governments, lowering small business taxes and encouraging job growth are in the works.

“The state has $100 billion deficit in its pension and health care system,” Sweeney said at a chamber luncheon in Morris Township. “We made promises to people, and now it is our business to deal with it.”

Sweeney, a general organizer for the International Association of Ironworkers, said “for years government gave the store away.”

While governors and the Legislature failed for most of the past 20 years to make annual contributions to the state’s pensions funds, public employee and teachers unions asked for and were granted a 40 percent reduction in their contributions, a five-year reduction in the retirement age and a 9 percent increase in benefits. It is time to correct that, Sweeney said.

Kean said Gov. Chris Christie and his administration are determined to reduce the size and cost of state government. Doing so, Kean said, would reduce costs for the state’s businesses and encourage hiring.

Both Sweeney and Kean praised Sen. Steve Oroho of Sussex County, who sponsored two key bills that are aimed at reducing costs of small businesses through tax credits and loss declaration timing. Kean said the passage of those bills would offer small businesses significant tax breaks.

Sweeney said even though he is a union supporter, the rank and file workers need to understand that giving up some salary and benefits would mean that more union workers have jobs. That answer was given in answer to a question by Lew Candura, a building trades union leader and chairman of the Morris County Democratic Committee, who said his unions have members who have been out of work for two and three years because there has been so little construction work.

Sweeney said Oroho’s bills would begin to address small business costs and loss reporting for tax purposes, which could spur job growth.

Randolph Mayor Trina Mitsch asked what was being done to reform interest arbitration rules that towns and school claim are hampering their ability to negotiate contracts with lower overall costs.

Kean said that legislation to cap arbitration awards was passed land signed into law last year, and Sweeney said the state’s new 2 percent tax levy cap was designed to force towns to be tougher negotiators and to encourage governments and school boards to share services.

Chris Connor, managing director of Long Hill Associates, asked what was being done to encourage start-up technology companies gain a foothold in New Jersey. Sweeney said the state has to begin spending on higher education to meet the demand the pharmaceutical and high technology industries for well-educated workers.

He said New Jersey was 50th of all the states in spending on higher education.

“We spend the most on K to 12,” he said, "and that creates a great opportunity for students to succeed in other states.”

Both Sweeney and Kean asked Connor to pass along his ideas to them.