TRENTON—Union County has refused to take action to comply with a compensation law, and the Office of the State Comptroller (OSC) today urged State leaders to withhold state funds from the County and to require OSC’s approval of certain County compensation decisions until the County complies.

In December 2023, OSC released a report finding that Union County paid three top officials a total of $417,772 in extra stipends and tuition reimbursement, without following the public legislative process required by law. OSC directed the County to submit a corrective action plan to come into compliance with the law. But the County has refused, citing a bill introduced in February 2024 which would change the law OSC found the County had violated. (S2702 would not require supplemental compensation to be set through an ordinance. It has not cleared the Senate, and no version of the bill has been introduced in the Assembly).

In a letter sent today to Governor Phil Murphy, Senate President Scutari, and Assembly Speaker Coughlin, Acting State Comptroller Kevin Walsh noted that the County is required by law to “fully cooperate” with OSC on developing a corrective action plan and the County’s rationale for non-compliance is inconsistent with the law and the basic rules on which local governments are required to operate. “If the mere introduction of a bill by a single legislator, without a vote on the floor of both houses . . . were enough to justify ignoring current law, the rule of law in our state would be undermined,” the letter said. “Nothing supports such a sweeping view of pending legislation.”

Citing the risk of further waste and the possibility that the County will continue to violate the law, as well as OSC’s legal duty to notify the Governor and legislative leaders, Walsh recommended that Governor Murphy withhold public funds from the County. Walsh also recommended that the Division of Local Government Services in the Department of Community Affairs, or the Local Finance Board, require OSC’s approval for supplemental payments to high-level County officials.  According to Walsh, these measures should stay in effect until OSC finds that Union County submits and complies with a corrective action plan, as required by law.

Since 1972, New Jersey’s Optional County Charter Law has required county boards of commissioners to establish compensation for themselves, the county executive, supervisor, manager or board president, administrative officer, and department heads by passing an ordinance.  Although Union County passed ordinances for the base salaries of the department heads and county manager, it did not do so for the stipends and tuition reimbursements. Instead, the County adopted resolutions that did not even disclose the officials who would receive supplemental payments. OSC found that the lack of transparency deprived Union County residents of the information necessary to weigh in on the extra compensation. 

“Unless the law is actually changed, Union County has an obligation to comply with the law and to fully cooperate with OSC’s directive to prepare a corrective action plan,” Walsh’s letter said.

Read the letter OSC sent to State leaders. 

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