By Samantha Marcus and Susan K. Livio | NJ Advance Media for NJ.com
on February 17, 2016 at 8:21 AM, updated February 17, 2016 at 11:10 AM
TRENTON — Here is a look at three key issues from Gov. Chris Christie’s Tuesday budget speech that could have a big impact on New Jersey residents.
1. PENSIONS
The problem: The public pension system is underfunded by about $54 billion, and the state is responsible for about $40 billion of that.
Christie proposes to make a $1.9 billion contribution to government worker pensionsGov. Chris Christie urges the chamber to put aside partisan politics and proposes to contribute $1.86 billion to government worker pensions during the 2017 Budget Address from the Statehouse in Trenton. 02/16/2016 (Courtesy of NJTV)
Since 1996, governors from both parties have contributed less than what actuaries recommended, and the state skipped payments altogether from 2001 to 2004. And while the state was taking a pension holiday, it increased benefits for employees. In 2011, Christie struck a historic pension reform deal with Democrats, in which public workers and employers were required to pay more into the system. Christie slashed payments after two years, however, to balance the budget.
What Christie is proposing: A $1.86 billion contribution in the fiscal year beginning July 1, about $550 million more than the state is expected to contribute this year.
Chances at passing: Very good.
“This budget provides a pension payment that is the largest in our state’s history more than my administration ever before, contrary to the hyperbole from special interest groups,” Christie said.
