Twitting Nonsense

New Jersey Senate president Steve Sweeney took to twitter to argue for putting more money into the state retirement system:

Glad my bill to pre-pay $300M towards next year’s pension payment passed sen. budget committee. Paying $1 now saves $3 later

I understand that these tweeters are not to be taken seriously (except by lazy journalists) as nobody is under oath here and most tweets seem to be made under the influence of either prepubescent angst or liquor but is there no truth filter?

Looking strictly at the math,  8% interest growth means 15 years later.  These plans have nowhere near 15 years of existence left unless the state comes up with a plan to fund the real cost of the benefits promised.  In terms that the Senate president might understand – that means paying $166 billion now which would save $498 billion later.

The dramatics play out in the legislature today and you should be able to hear it here if interested.

7 responses to this post.

  1. Posted by Anonymous on June 25, 2015 at 9:13 am

    Business as usually in Trenton, typical partisan politics. The publics and taxpayers bearing the brunt of their shenanigans.

    Reply

  2. Posted by Anonymous on June 25, 2015 at 9:45 am

    Assuming the $300M will be transferred to the pension funds immediately there’s no benefit to doing it prior in July for BFY15 versus BFY16. If the $300M isn’t transferred to the pension funds until BFY16 year end there’s the risk of another budget shorfall. Once again exercising executive power to lapse the funds and balance the budget.

    Reply

  3. This math makes sense if you are a high school dropout. Which is what NJ deserves as their next Governor. A high school dropout.

    Reply

    • Posted by skip3house on June 25, 2015 at 12:13 pm

      I do recall 8th grade arithmetic problems unsolvable until you washed away the distractions and concentrated on facts alone

      Reply

  4. Posted by Anonymous on June 26, 2015 at 8:33 am

    Hey John, how does selling state assets like the NJ Turnpike adversely effect the state or benefit the state in your opinion?

    Reply

    • It depends what you get for it though if done it will likely be done out of panic for shorty-term gain to plug some budget hole so it’s likely to be a bad thing long-term.

      Reply

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