Communities Controlling Their Own Costs –
PA 312 and Mandatory Binding Arbitration
See the League’s Inside 208 blog for Timely Updates on Related Legislation
After 40 years of struggle with PA 312, in June 2011 the legislature made critical reforms to PA 312.
The bill makes the following changes:
Makes ability to pay the primary factor an arbitrator must consider in an arbitration.
Defines what an arbitrator has to consider for ability to pay.
Requires an arbitrator to consider internal comparables as well as external.
Shortens the process to 180 days.
Moves up last best offer to be submitted following mediation.
Includes future authorities in PA 312. It grandfathers existing authorities unless they are currently organized or under a union contract. If an existing authority expands it would be subject to PA 312.