So much for a conservative Republican balancing a budget or fixing a problem (NJ pensions, again)‼️

Okay, to be fair New Jersey is still controlled by Democrats and public employee unions, but Christie did promise😰

TRENTON—Gov. Chris Christie said Tuesday he would slash payments to public-worker retirement funds by $2.4 billion over the next two years to close a budget shortfall, upending part of a landmark pension deal he struck three years ago that vaulted him into the national spotlight.

The short-term budget maneuver angered the state’s public-sector unions, drew fire from Democrats who control the Legislature and prompted concerns from at least one Wall Street rating firm. And it underscored the Republican’s challenges as he mulls a 2016 presidential bid in the wake of the George Washington Bridge scandal.

Mr. Christie billed the decision as the most responsible move he could make after plunging state tax revenues and unexpected costs left the state with a more than $1 billion shortfall in this year’s $33 billion budget. The alternative, he said, would be to cut services for the elderly, the poor and children. Wall Street Journal May 21, 2014

Democrats would prefer raising taxes again in the highest taxed state in the union. God forbid the pension plans should be modified to align with the private sector pensions (where they even exist) of the taxpayers footing the bills. Here is one small example of the absurdity of New Jersey pensions. Participants can borrow from the defined benefit pension trust at a 5% rate while the fund assumes an investment return of 7.95% (For many years, that rate was set at 8.25%, and the loan rate was also lower although in 2012 the investment rate was reduced to 7.95% ).

First, borrowing from such a pension which has no individual accounts is ridicules and second, charging an interest rate below the rate of return assumed by the fund is outright irresponsible. If the fund meets its assumptions, it guarantees the fund will lose money on each loan outstanding.

Both parties, but especially Democrats, have been playing games with pension funding for decades by underfunding, agreeing to overly generous plan provisions, making promises that cannot be kept and shifting money from one place to another 😡😡😡😡 all things that would not be tolerated in the private sector and which may land you in jail.

The ultimate losers are New Jersey taxpayers and public employee pension plan participants. Nevertheless, merrily we role along‼️

But wait, here’s more from an article in the WSJ 5-22-14.

After the governor on Tuesday said he would cut contributions into the state’s pension system by $2.4 billion over two years, Democrats and unions called for him instead to consider tax increases on the rich. He rebutted the idea Wednesday, saying New Jersey already taxed its wealthy too much.

So the solution to the problem of paying for overly generous and unaffordable pensions is to raise taxes on the left’s favorite target rather than honestly and fairly reforming the pension system for public employees.

At least three governors in New Jersey set up task forces to evaluate the pensions and other benefits of state workers (I participated in all three) and still nothing significant has been done to deal with the fundamental issues. Certainly state workers must be treated fairly … but so should all of New Jersey’s taxpayers‼️

No doubt someone will be fired for underestimating revenue based on a flawed assumption regarding capital gains. LOL