A proposal to limit the unused sick-leave payouts and vacation carry-over for all New Jersey public employees was approved by the state Senate Budget and Appropriations Committee Monday.
The bill is described as a key component of the legislative Democrats' version of the so-called "tool kit" for local officials to use to live within the means of the state's new 2 percent property tax cap.
Over the years, New Jersey public and school officials have used sick and vacation day payouts when they retire or change jobs to reap thousands of dollars for themselves, much of it questionable.
"One of the fastest growing fiscal concerns for towns is the enormous payouts that need to be given to some retiring employees for unused sick and vacation time," Sen. Paul Sarlo (D-Bergen), the sponsor, said. "Left unchecked, these bonuses can easily match the salary of a full-time employee, if not more. If towns are to be able to remain viable under the new property tax cap, these reforms are sorely needed."