Government workers rally in support of sales tax hike Thousands gather outside State House annex. Tax would finance payments into state pension system. Tuesday, June 20, 2006 • By Terrence Dopp • The Express-Times TRENTON | Thousands of retired and present government workers rallied Monday to support Gov. Jon Corzine's proposal to cover increased pension payments by raising the state sales tax. "They may have their day inside this building. But come election day you will have yours," Charles Wowkanech, president of the New Jersey State AFL-CIO, who addressed the group outside the State House annex, said of political opposition to increasing taxes. Two weeks before the July 1 deadline for the Legislature to approve Corzine's $31 billion spending plan, he and both houses of the Legislature are fighting over $2 billion in tax increases proposed to finance the plan's 9 percent spending hike. The centerpiece of the plan: a $1.5 billion payment into the state pension system paid for primarily with a 1-cent increase in the 6-cent sales tax. While legislators in the state Assembly have balked at the proposal, union leaders called it responsible and the best option for New Jersey's 150,000-plus public work force. Union organizers contend successive governors and legislatures have continually under-funded the system of six pension plans covering teachers, civil service workers, police and firefighters, a total cost of $4.3 billion annually. Public employees receive pensions based upon their three highest-paid earning years and lifetime medical benefits. According to state police, 5,000 to 6,000 members of the AFL-CIO, Communications Workers of America, New Jersey Education Association and the American Federation of State, County and Municipal Employees all took part in the rally. Those questioned were either retired or said they used a sick day to attend the rally. Corzine stands with unions A central theme of protesters' ire: a pending proposal by three pro-labor Democrats to "re-open" employee contracts and seek a 15 percent cut in public sector benefits. Corzine rejected the idea. He pledged to stand with the unions against any attempt to scale back state pension contributions or negotiated perks before contract talks in 2007. "Last time I checked, a contract is a contract," said Corzine, at times yelling until his face turned red. In an apparent reference to Sweeney, he said: "Those who would quibble with collective bargaining do a disservice to democracy." 'Asking for help' Sweeney called the accusations unfair. "Those who are not willing to ask employees to help are doing a disservice to the taxpayers," said Sweeney, D-West Deptford. The Democrat has said such benefits have grown too far above perks offered to most New Jerseyans and too expensive to justify forcing the entire state to shoulder an increase in the sales tax. "The governor is way off with those statements," Sweeney said. "There is nothing wrong with voluntarily asking for help. We're not breaking a labor contract. I never once said that." The rally was the crescendo of an ongoing debate over how to close a budget gap estimated to be between $2 billion and $4.5 billion. Demonstrators said they worried less about the source of pension funding than seeing it in the 2007 budget. Union members wore matching blue and red shirts and carried signs emblazoned with slogans such as "Do what's right; fix what's wrong" and "a fair pension." Labor leader Sweeney took shots from workers statewide. "Steve Sweeney sold out his friends. And the worst part is that he doesn't understand that," said Frank Forst of Jamesburg, assistant to the president of AFL-CIO Local 194. Doug Morris, who retired in February 2002 after a 35-year career teaching middle and high school in Phillipsburg, said he attended the rally to send a message to Corzine that he needs to usher the tax increase past the Legislature in order to fund pensions. "I made my pension contributions religiously every month and every year. I'm entitled to my benefits," said Morris, 62, a Palmer Township resident. "The state has not made its payments like I have." Also Monday, as the crowd gathered in Trenton, Corzine, Senate President Richard Codey and Assembly Speaker Joseph Roberts held a meeting to discuss legislators' opposition to many of Corzine's tax increases, primarily the sales tax. Codey said there was full support for it among Senate Democrats, who control the upper house 22-18. Roberts said a straw poll of his members, who hold a 47-33 majority, showed there was not enough support to raise the sales tax. Under the New Jersey constitution, all revenue-raising bills must originate in the Assembly, making members' approval necessary. Terrence Dopp is Trenton correspondent for The Express-Times. He can be reached at 609-292-5154. © 2006 The Express-Times. Used with permission.