Rabu, 02 Desember 2009

The gravy train continues to roll

They receive paid days off for Christmas shopping, donating blood and weddings. And when these public employees retire, they can cash in tens of thousands of dollars worth of unused sick time and vacation days.

Extensive taxpayer-funded benefits for some local government employees are straining the budgets of New Jersey municipalities, according to a report the State Commission of Investigation released today.

Despite a recession that has depleted tax revenue and forced layoffs, the report says, municipalities continue to spend tens of millions of dollars on big payouts to retiring workers.

“The gravy train continues to roll without impediment for select groups of employees on the public payroll,” it reads. “Startling amounts of taxpayer-funded booty continue to be dispensed across New Jersey without regard for the common good.”

The SCI, which examines crime and corruption and reports to the Legislature, said it discovered $39 million in extravagant payouts after reviewing 75 towns, counties and local authorities. State employees can receive a maximum of $15,000 for unused sick time, but such limits aren’t standard at the local level.

The SCI report is a black eye for municipalities who have clamored for more state assistance to help cope with the recession. Lawmakers on both sides of the aisle expressed outrage over the expensive perks.

“It shocks the conscience,” said Assemblyman Lou Greenwald (D-Camden), who pledged legislation to cap severance payments. “The taxpayers have every right to be offended.”

Montclair State University Brigid Harrison expects political power struggles if the state cracks down on employee benefits at the local level.

“Counties are often political fiefdoms,” she said. “County freeholders or executive boards get to pad the ranks of public employees with political supporters.”

NJ industrial rents fall to “lowest in a decade”

Over the years, as the real estate markets for offices, residences and stores in New Jersey have gone through peaks and valleys, the market for industrial real estate has been like the buildings themselves — not flashy, but big, solid and reliable.

No longer. The tenor of third-quarter market reports about the warehouse sector has ranged from unhappy to abysmal.

One big commercial real estate services concern, CB Richard Ellis, reported, for instance, that 11.7 percent of the state’s industrial property was available for either purchase or lease as of Sept. 30. That was the highest rate it has recorded since 1992 and a 32 percent rise in 12 months.

Another company, Cushman & Wakefield, uses somewhat different parameters in its calculations, but said it agreed with the “thrust and reasoning” of CBRE’s report. Its measure of the vacancy rate for warehouses and distribution centers was 8.8 percent as of Sept. 30.

Furthermore, industrial specialists said that asking rents were plummeting statewide, and that in many submarkets, effective rents were the lowest in a decade.

“Staggering,” Mr. Knee said. “I haven’t seen it in all my 21 years in the business.”