New Jersey's 23rd Legislative District

Senator Michael Doherty

Senator Mike Doherty

Doherty Supports Counties & Municipalities in Call for Permanent Interest Arbitration Cap

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Says Cap Critical to Limiting Property Tax Increases

Senator Mike Doherty (R-23) issued a statement in support of the efforts of the New Jersey League of Municipalities and New Jersey Association of Counties to make permanent the state’s cap on interest arbitration awards.

Sen. Mike Doherty expressed support for the efforts of the New Jersey’s counties and municipalities to make permanent the state’s cap on interest arbitration awards. (

“The elected officials who manage our towns and counties on a daily basis have told us that it’s a certainty that property taxes will rise or services will be cut if the interest arbitration cap is allowed to expire,” said Doherty. “This cap is the primary reason that property tax growth has slowed over the last eight years from the runaway increases of the McGreevey and Corzine years.”

Doherty was a prime sponsor of legislation (S-5) enacted in 2010 that limits the salary increases that may be awarded when disputed police and fire contracts enter the process of binding arbitration to two percent.

The temporary interest arbitration cap, which was extended in 2014 for three years, expires at the end of 2017.

Doherty said that the state’s successful property tax cap, which limits annual property tax increase without voter approval to a maximum of two percent, would not work without the interest arbitration cap.

“There’s no doubt that the interest arbitration cap makes our property tax cap possible,” said Doherty. “Without one, the other won’t work. Our counties and municipalities know this, which is why they are sounding the alarm. It’s critical that we make the interest arbitration cap permanent to protect property taxpayers.”

Doherty questioned if enabling massive property tax increases should be the first act of the incoming Murphy Administration.

“Governor-elect Murphy made a lot of promises, but I don’t remember a huge property tax increase among them,” added Doherty. “Is thumbing his nose at overburdened property taxpayers really how he wants to start his administration? He should commit publicly to making the interest arbitration cap permanent.”

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