Requires public arbitration panel to which a dispute is referred to consider above all other factors the financial ability of the public employer to pay, as defined

BILL NUMBER:S2337

Title of bill

An act to amend the civil service law, in relation to binding arbitration for certain public employees

Purpose

This bill requires a public arbitration panel to which a dispute is referred to consider above all other factors the financial ability of the public employer to pay.

Summary of specific provisions

Section 1 - Amends the opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of § 209 of the Civil Service Law.

Section 2 - Amends Clause b of subparagraph (v) of paragraph (c) of subdivision 4 of § 209 of the Civil Service Law.

Section 3 - Effective date.

Current law

Civil Service Law § 209, as amended, provides that local governments are subject to binding arbitration proceedings before the Public Employees Relations Board (PERB) when negotiating with local police and fire unions, New York City transit police, and district attorneys. Civil Service Law § 209 (4) provides that a PERB biding arbitration panel shall consider the financial ability of a municipal employer to pay, but such consideration is not given the highest priority.

Justification

Currently, while Civil Service Law § 209 requires a PERB binding arbitration panel to consider the ability of a public employer to pay an award, it is not given the highest priority. Without this provision; PERB panels are free to establish contract settlements at levels that can be unaffordable or result in significant tax increases. This bill would rectify this situation to place greater emphasis on the financial ability of a public employer to pay an award without resorting to increased taxation.

Fiscal implications

Unknown, but the "ability to pay" reforms enacted by the bill are expected to result in substantial savings for localities.

Legislative history

2009-2010: S.3014/A.4197 -- CIVIL SERVICE/Gov't Employees 2007-2008: S.3186/ A.5958 -- CIVIL SERVICE/Gov't Employees 2005-2006: S.4942/A.3445 -- CIVIL SERVICE/Gov't Employees 2003-2004: A.5952 2001-2002: A.7331

Effective date

This act shall take effect immediately, except that sections one and two of this act shall only apply to disputes referred to a public arbitration panel on or after the effective date of this act, and provided that the amendment to the opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section one of this act and the amendment to clause b of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section two of this at shall not affect the expiration of such subdivision and shall be deemed to expire therewith.