The New Jersey Office of the State Comptroller (OSC) has concluded that Union County violated state law by awarding its top officials over $417,000 in extra compensation without proper public approval, prompting calls for increased oversight and transparency.
The investigation focused on stipends and tuition reimbursements granted to Finance Director Bibi Taylor and County Manager Edward Oatman, exceeding their base salaries.
Excessive payments were also made to Public Works Director Joseph Policay, or Joseph Grazian, who was director of the Union County Department of Engineering, Public Works and Facilities Management from 2006 to September 2023.
The OSC determined that under the Optional County Charter Law (OCCL), all forms of compensation for such positions must be established by ordinance, a process requiring public hearings and open votes.
Oatman received $16,500 in tuition reimbursement, while the county finance director received more than $300,000 in extra stipends, and the public works director nearly $100,000, according to the OSC report.
“Union County disregarded the clear language of the OCCL and bypassed the crucial safeguard of public scrutiny,” declared the OSC in its official findings. “These actions undermine transparency and accountability in government, and we are directing the county to take immediate corrective action.”
The Director of Public Works received nearly $98,000 in stipends for assisting a municipality, while the Director of Finance earned over $303,000 in stipends and tuition reimbursements for additional work at the Union County Improvement Authority and pursuing a doctorate. Both positions bypassed the ordinance approval process. The County Manager also received $16,500 in unapproved tuition reimbursements.
Oatman earns a salary of $185,976, while Taylor had a salary of $159,756, Policay, $128,508 and Graziano, $156,216.
Union County argued that the OCCL only requires base salaries to be set by ordinance, claiming that stipends and reimbursements fall outside its scope. They further contended that ordinance approvals for stipends would overburden the pension system. However, the OSC dismissed these arguments, citing the OCCL’s plain language and emphasizing that it applies to all forms of compensation for the designated positions.
“The law is clear,” stated the OSC. “All compensation, regardless of its form, must be subject to public oversight and approval through the ordinance process. This case underscores the importance of upholding transparency and ensuring that public funds are spent responsibly.”
The OSC has directed Union County to develop a corrective action plan addressing the violations and outlining how they will comply with the law moving forward. The plan is expected to be submitted within 30 days.
This case raises broader concerns about transparency and accountability in county government across New Jersey. Critics of Union County’s actions argue that the incident highlights the potential for abuse in the absence of proper public oversight.
Meanwhile, advocates for open government are calling for increased scrutiny of compensation packages for public officials at all levels.
Garwood resident Bruce Paterson previously raised questions about government contracts awarded to a law firm where Lester E. Taylor III, the husband of the finance director, is a partner.
A story in Politico alleged that the finance director’s Democratic primary campaign for Assembly collected donations from top members of an architectural firm that received a no-bid contract to design a $100 million complex in Elizabeth.
The OSC’s findings are expected to have significant ramifications for Union County and may serve as a precedent for similar cases in the future. As the county moves forward with its corrective action plan, the focus will remain on ensuring that public officials’ compensation is transparent, accountable, and adheres to the letter of the law.