EXECUTIVE
ORDER NO. 39
WHEREAS, a contributing factor to the recent budget
shortfall has been a $1.4 billion increase in mandatory
funding needs, including nearly a $1 billion increase
in employee benefits; and
WHEREAS, continuing increases in employee benefits costs
contribute to the structural deficit that New Jersey
faces every year; and
WHEREAS, over the last four years growth in benefits
has helped drive budget spending increases; and
WHEREAS, the total cost of health care benefits for
current State employees has risen by 50 percent over
the last four years; the total cost of health care benefits
for retired State and college employees has more than
doubled; and the total cost of health benefits provided
free of charge to retired teachers and other school
personnel has doubled; and
WHEREAS,
employee benefit costs are projected to be 14 percent
of the State’s overall FY 2006 Budget
as compared to 8.8 percent four years ago, and by the
year 2010, it is projected that benefit costs will
constitute 20 percent of the State budget; and
WHEREAS, controlling growth in employee benefit programs
cannot occur overnight, but it is critical that the
process to review and recommend ways in which the costs
of health benefits and pensions for public employees
can be managed begin now, while still maintaining fair
benefits for those employees;
NOW, THEREFORE, I, RICHARD J. CODEY, Acting Governor
of the State of New Jersey, by virtue of the authority
vested in me by the Constitution and by the Statutes
of this State, do hereby ORDER and DIRECT:
- There
is hereby established a Benefits Review Task Force
(hereinafter “Task Force”). The
Task Force shall consist of eight members, including
the State Treasurer, the Commissioner of Labor,
and six public members appointed by the Governor.
The public members shall be selected from among
individuals with knowledge or experience in the
areas of employee benefits, pensions, management,
finance or economics in the academic, corporate
or government setting. The Governor shall appoint
the Chair of the Task Force.
- The Task Force shall (1) examine the current laws,
regulations, procedures and agreements governing
the provision of employee benefits to State and local
government workers, (2) analyze the current and future
costs of the benefits, (3) compare the level of benefits
provided to government employees in this State to
the benefits provided to other workers, and (4) recommend
changes to the laws, regulations, procedures and
agreements designed to control the costs of such
benefits to the State’s taxpayers, while ensuring the State’s
public employees a fair and equitable benefit system.
-
The Task Force shall issue its report to the Governor
within six months of the effective date of this Executive
Order.
-
The Task Force is authorized to call upon any department,
office, division or agency of this State to supply
it with records and other information, personnel or
assistance that it deems necessary to discharge its
duties under this Order. Each department, officer,
division or agency of this State is hereby required,
to the extent not inconsistent with law, to cooperate
with the Task Force and to furnish it with such records,
information, personnel and assistance as is necessary
to accomplish the purposes of this Order.
-
This Order shall take effect immediately.
GIVEN, under my hand and seal this 25th day of May in
the Year of Our Lord, Two Thousand and Five, and of
the Independence of the United States, the Two Hundred
and Twenty-Ninth.
Richard J. Codey
Acting
Governor
Attest:
Mark
J. Fleming
Deputy
Chief Counsel to the Governor
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