NJ Debt Bomb Exploded Under Christie

Taking official numbers from the annual Treasury Department debt report as of June 30, 2016 has the state’s total Bonded and Non-Bonded Obligations at $171,560,258.  What was that number on June 30, 2009 before the governor who balanced every budget came aboard?

With a little cutting and pasting of pages 11 and 12 from that report:

Even including a $125,478,576 amount for pension and OPEB debt that is from FY15 and $78 billion lower than those amounts listed in the Supplemental section of the report ($135.8 and $67.5 billion respectively) under this guy:
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debt has so far grown by $120 billion.*

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* Of course much of the growth is attributable to using more realistic values for those pension and OPEB liabilities. It’s quaint to see that value at $13 billion combined as of June 30, 2009 when GASB changes requiring more valid numbers puts it at around $200 billion now.

 

14 responses to this post.

  1. Posted by George on March 15, 2017 at 8:46 am

    Big Companies Offload Pension Plans

    Big U.S. companies like GM and Verizon are paying insurance companies large sums to take over their pension plans in an effort to offload risk at a time when many defined-benefit plans are under strain. The Wall Street Journal reports:

    http://www.the-american-interest.com/2017/03/13/big-companies-offload-pension-plans/

    I wonder what an insurance company would charge to offload one or all of the NJ pension schemes? What would they be willing to pay for the NJ Pension assets?

    Reply

    • Posted by NY on March 15, 2017 at 9:08 am

      Perhaps John can fill us in about how these deals work.

      I think the pensioner will typically have a pension contract with his/her former employer.

      If that employer makes a deal with an insurance company to take on the employer’s pension liabilities, and the insurance company subsequently goes belly up, I would think that the pensioner will be able to successfully argue in court that there still exists a contract between pensioner and former employer — and that therefore the former employer is still on the hook to either pay out or go belly up itself, no?

      Reply

      • Posted by George on March 16, 2017 at 2:35 am

        “how these deals work” What I was thinking was just getting a quote for the liabilities and the assets might clear up some things. I wonder if the state posted all the relevant data in easily accessible format if it would be possible for third parties to comment on the liabilities and assets,.

        Reply

    • Posted by truesally on March 15, 2017 at 9:10 am

      millennial kids bagging groceries to support boomers rich pensions . well like they always said “it’s for the kids” ….

      Reply

    • Posted by boscoe on March 15, 2017 at 12:52 pm

      Speaking of offloading pension plans, what is all this about? Maybe I should say what is all this REALLY about? State Senate votes 37-0 to turn over total control of Police and Firemen’s Retirement System to new Board of Trustees of the system. They will control benefit levels (including reinstatement of COLAs), investments, administration of system. State of NJ and local employers will make employer contributions as required (by whom?) on a quarterly basis. Unanimous Senate vote? Why is PFRS treated differently than other state pension systems?

      http://www.njleg.state.nj.us/2016/Bills/S3500/3040_I1.PDF

      http://www.nj.com/politics/index.ssf/2017/03/nj_senate_passes_bill_turning_pension_fund_over_to.html#incart_most-commented_passaic-county_article

      Reply

      • Posted by Anonymous on March 15, 2017 at 3:07 pm

        Next up, special legislation targeted to protect SPRS and JRS – PERS and TPAF go to????

        Anonymous on March 15, 2017 at 8:37 am
        This is the beginning of how the special special interests will maintain the status quo. Any State legislation mandating local employers contributions for PFRS should be replaced.

        http://www.nj.com/politics/index.ssf/2017/03/nj_senate_passes_bill_turning_pension_fund_over_to.html#incart_2box_nj-homepage-featured

        Reply

        Reply

      • Posted by Anonymous on March 15, 2017 at 3:12 pm

        The Locals are required by State legislation to make their ARC (however determined) but if (or more like when) this PFRS legislation passes any State mandate on Local contributions should be repealed. Bottom line is PFRS want protection on the upside and downside, politicians will give it to them at the expense of other pension funds and property tax payers.

        Reply

      • Posted by George on March 16, 2017 at 2:30 am

        If I remember right, during the Vallejo bankruptcy, police fire got special treatment, aka a raise, while the rest of the pensioners got cuts. Police got special treatment from Central Falls bankruptcy also. So separating the police and / or fire pension makes sense in that context. I think they are being too greedy trying to get the bailout up front, rather than piecemeal over time. Hey Sweeny, one step at a time, you must stalk the wild bail out sneaking up on it little by little.

        The only case of police fire sharing the pain was tiny Pritchard Alabama’s second or third bankruptcy. If I remember right the mayor negotiated an innovative kind of profit sharing agreement with unions based on future tax collections that seems to have worked. Mayor Davis was rewarded for saving the little town by being immediately voted out of office. Latest news, beyond crime, is the budget is once again out of control.

        Reply

  2. Posted by skip3house on March 15, 2017 at 11:38 am

    any zeroes missing…..?

    Reply

    • Posted by boscoe on March 15, 2017 at 12:04 pm

      Six zeroes missing (or three if you change the decimal point to a comma). Total obligations 2016 are $171,560,258,000.

      Reply

  3. Posted by Anonymous on March 15, 2017 at 11:59 am

    Wait until you see the US debt explodes at the expense of Defense spending and a tax cut on the wealthy!

    Reply

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