Blame Game on Pensions in New Jersey
When New Jersey Gov. Chris Christie announced his decision last week to forgo $2.4 billion in state pension payments over the next two years, he blamed his recent predecessors for leaving him a system deep in debt.
Those predecessors have different views. While some take at least part of the responsibility for the looming shortfalls, they also blame each other and Mr. Christie. They said they did what they thought was best at the time, even if they are now concerned about the state’s fiscal health.
“Everybody has to take the blame for this,” said former Gov. Donald DiFrancesco, a Republican.
The state’s pension is currently underfunded by almost $40 billion, and that could rise to $46 billion by 2019, according to a state report.
Faced with a state budget shortfall of almost $3 billion between now and 2015, Mr. Christie last week announced that he would do what many former governors have done: He kicked pension obligations down the road in favor of immediate budget priorities.
The Republican cast his decision as a choice between reducing services and raising taxes, both of which he said he was unwilling to do. Either move could potentially drain his political capital at the national level, at a time when he is struggling to put the George Washington Bridge scandal behind him.
After his decision, the system’s deficit could rise from about $38 billion to $46 billion by 2019, according to a state report, higher than when he took office.
Calling out his predecessors for not paying more into the system, Mr. Christie said his current problems stem from “sins of the past.” (Dawsey and Haddon/Wall Street Journal)
https://online.wsj.com/
