Pensions

Governor Corzine says he'll cut school aid, even if the Legislature won't go along with his irresponsible pension deferral scheme. Senate Republican Leader Tom Kean says that the governor shouldn't wait to tell parents, school administrators and district officials where he plans to cut their budgets. The governor needs to speak up right now.

Comes After Pension Commission Removes Key Bill From Today's Agenda

The Pension and Health Benefits Review Commission removed from its agenda today legislation (S-7) that would irresponsibly cause local employers to skip more than $1 billion in pension payments. The legislation had been on the agenda, but was pulled in recent days. The Commission is statutorily charged with reviewing legislation that changes benefits by even one dollar, but they are not permitted under state law to review or discuss legislation that would further short underfunded public pension funds.

Republican members of the Senate Budget and Appropriations Committee issued the following statement on S-2507, a bill that will cut state aid for school districts based on how much they save by not making full payments into the state pension fund for their non-teaching employees. The bill will be considered by the committee today:

"Republican members of the Budget and Appropriations Committee today reaffirm their unwavering opposition to Governor Corzine's scheme to deplete the pension funds," said Anthony Bucco, Republican Budget Officer. "I have asked the chairwoman to delay the committee's vote on this bill so that the pension provisions can be eliminated from this bill. If they aren't removed, we will vote against the bill."

"We owe it to taxpayers and retirees to seriously discuss alternatives to shortchanging the pensions. As written, this bill will ultimately cost taxpayers hundreds of millions of dollars and threaten the secure retirement promised to government employees," said Kevin O'Toole, Republican Senate Whip.

"It's long past time for Governor Corzine to stop kicking this state's fiscal problems down the road, and come up with common-sense solutions to New Jersey's budget problems," Senator Phil Haines said.

"This pension gimmick is the ultimate example of the irresponsible budget 'one shots' that the governor repeatedly promised not to support," said Senator Joseph Pennacchio.

"Governor Corzine has offered a false choice between shortchanging school kids or short-changing public employees when he should first cut the bloated budget for patronage hires to balance this budget."

"Years of gimmicks have created a disaster whereby only about 50 percent of the roughly $120 billion in state pension liability is covered today by the value of pension assets," Senator Steve Oroho said. "If the gimmicks don't stop, this system will go broke."

CRYAN: PENSION DEFERRAL MAY BE ONLY CHANCE
FOR SOME TOWNS TO PREVENT 'DISASTROUS' TAX HIKES
Assemblyman Says Legislation 'Least of Many Dismal Options'

(TRENTON) - Assemblyman Joseph Cryan today said legislation released by the Assembly Budget Committee to defer some of this year's obligated pension payments may be the only opportunity for some communities to avoid either double-digit property tax increases or draconian cuts in essential services.

Governor Corzine's election-year pension scheme would have us buy high and sell low. Taxpayers need to know how many hundreds of millions of dollars this kind fiscal irresponsiblity ultimately will cost them.

Republican Senate Leader Tom Kean urges anyone interested in common sense fiscal policy to remain vigilant in the fight against the false savings promised by Governor Corzine's pension deferral plan.

Governor Corzine's plan to underfund pensions is blocked for now as a bipartisan coalition of senators balks at this irresponsible gimmick.

Governor Corzine wants to let towns delay pension payments. The proposal threatens to pit taxpayers against public employees in fight that neither will win. Senator Allen is disappointed that so many lawmakers seem to be supporting this reckless and misguided proposal.

Governor Corzine has provide no estimates of the total cost of the pension holiday gimmick. Yet he's confident that Democrats in the Legislature will vote for it. Could it be that he's only concerned with the next election?

The state Treasurer should release all documents on the state's reckless $178 million investment in Lehman Brothers, not nickel and dime senators who request information.