New Jersey’s Pension Surplus

In local budgeting having a surplus is often a good thing providing a cushion against unexpected  downturns.  For example in the 2016 Union County budget it was reported:

Faella said the county’s surplus increased from $31 million last year to $55 million this year, which has maintained the county’s bond rating.

New Jersey also has developed a surplus account (though they define it as ‘pension contribution’) and it looks like they may need to tap it again.

It was just reported:

Acting state Treasurer Ford M. Scudder and financial analysts from the Office of Legislative Services are scheduled to testify before the Assembly Budget Committee on Wednesday about Christie’s $34.8 billion budget proposal for the coming fiscal year. Experts are also expected to provide lawmakers with an update of New Jersey tax collections in recent months and of broader economic trends.

In total, the OLS is now forecasting that the state will collect $1.1 billion less in taxes than Christie is assuming for the budget that ends in June and for the one now being considered by lawmakers.

In the current fiscal year, OLS forecasts a shortfall of $487 million for the $34 billion budget. That shortfall would have to be balanced with either cuts or more revenue before June 30.

Lawmakers must approve a new, balanced budget before July 1. The proposed $34.8 billion plan Christie proposed earlier this year is off by $622 million, according to the OLS revenue estimates.

So how will this shortfall be handled?  The article ends with this paragraph:

For the current fiscal year, Christie has proposed a $1.3 billion contribution to the pension funds. For fiscal 2017, Christie has announced plans to contribute $1.86 billion. Reducing those payments could trigger more downgrades from Wall Street credit-rating agencies, which shifted New Jersey’s investment rating to historically low levels after Christie’s past pension maneuvers.

 

 

9 responses to this post.

  1. Posted by Eric on May 18, 2016 at 5:09 pm

    Christie will have his friend, The Donald, just write a check for the shortfall. After all, The Donald is hosting a cc debt reduction get together.
    John, are you on “that list?”
    Eric

    Reply

  2. Posted by Tough love for tough love on May 18, 2016 at 10:04 pm

    Dear lord,
    Thank you god. TL left 4/16. Thank you for answering my prayers. May she receive all the empathy she showed others-in return.

    Reply

  3. Posted by MJ on May 19, 2016 at 1:12 pm

    Why did you have to bring up TL? I was thinking that the blog is much more pleasant even when we disagree on things since TL has not been on her. Hope she is ok.

    Reply

    • Posted by Anonymous on May 19, 2016 at 7:40 pm

      I almost always disagreed with TL on pension issues. However, I never got the impression that she was a bad person. Just way to into it, and always harping on thing. But unlike some other the morons on here, she never called for eliminating past accruals, only reducing or stopping future ones. TL, and we know your still reading these comments, if you haven’t assumed a new screen name, hope all is well w your life.

      Reply

  4. Posted by S Moderation Douglas on May 20, 2016 at 1:07 am

    The World Wide Web is a vast and wondrous universe. TL is still out there, fiesty as ever. Don’t ask me how I know.

    LOL!!!

    Reply

  5. Posted by S Moderation Douglas on May 20, 2016 at 2:23 am

    LOL!!!

    Reply

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