The state comptroller’s office is accusing nine municipalities of refusing to correct their policies surrounding sick and vacation leave payouts and saying the office may soon recommend that the governor withhold state aid from them as a result.
Acting State Comptroller Kevin Walsh said in a letter sent Thursday to Gov. Phil Murphy and the state Legislature that nine towns have failed to “cooperate in the development of a corrective action plan by evaluating and addressing deficiencies in their sick and vacation leave policies.”
The letter comes more than 14 months after Walsh’s office issued a review of these policies, finding 57 of 60 municipalities did not fully comply with 2007 and 2010 laws revamping sick leave and accrued vacation time payouts. More than half of the towns paid out accumulated unused sick leave days beyond the cap of $15,000, according to the review.
Those towns were required to devise a corrective action plan, along with a legal review, independent fiscal assessment, and new internal controls, plus obtain approval of the plan by their governing body. The vast majority of towns already sent their plans or are in the…
