Most New Jerseyans Are Fiscal Dullards

That is what the Murphy administration has to believe for them to send out this piece of gripka:

Treasurer Muoio Announces New Jersey Has Paid the Full State-Funded Portion of the Pension Contribution for the First Time in More than 25 Years
Lump Sum Payment Will Now Save Taxpayers an Additional $700 Million More Than Initially Anticipated for a Total of $2.2 Billion Over 30 Years

treating $10.19 billion in Biden relief money as if it will never have to be repaid (one way or another).

Keep in mind when reading just this one excerpt below that $6.9 billion represents about six months worth of payments out of a pension system that is still accruing benefits at record levels and as of June 30, 2020 reported unfunded liabilities under GASB of $128 billion.

“Today is a remarkable day for the State of New Jersey,” said Governor Phil Murphy. “When we started this journey more than three years ago, I made a promise to the hardworking public employees and retirees of our State. Today is not only the day we officially make good on that promise, it is the day we start filling in the hole that has been dug over the last 25 years. This budget is the first in a generation – 25 years – to make our full payment into the pension funds of our public workforce.”.

19 responses to this post.

  1. Posted by Stephen Douglas on July 2, 2021 at 12:35 pm

    A Rabbi delivers the eulogy at a man’s funeral. Old lady in the back row: “Give him some chicken soup! Give him some chicken soup!” Rabbi: “Madame, it wouldn’t help.” Old lady: “It couldn’t hurt.”

    pewtrusts.org/-/media/data-visualizations/infographics/2020/10/nj_pension_figure1_650px.png

    Of course, some people say we should just refuse to contribute and force pension reductions of 50 percent.

    Or more.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 2, 2021 at 1:06 pm

      Of course, some people say we should just refuse to contribute and force pension reductions of 50 percent.
      Fuck Yes! Pay out an AMOUNT that reflects what was contributed by both sides. The fact is the Public Porkers have already been paid what they are owed in pension debt by receiving excessive salary/wage increases. Increases that would not have happened “but for” the failure to make the ARC.

      Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 2, 2021 at 1:14 pm

      A Rabbi delivers the eulogy at a man’s funeral. Old lady in the back row: “Give him some chicken soup! Give him some chicken soup!” Rabbi: “Madame, it wouldn’t help.” Old lady: “It couldn’t hurt.”
      So Monket Boi Stephen Dougie walks into a bar with is Pops …

      🐒🤣🐒🤣🐒

      Reply

  2. Posted by Stephen Douglas on July 2, 2021 at 3:34 pm

    There have been scores of compensation comparisons over the last thirty years and none of them are conclusive. The most logical conclusion:

    “In short, for the nation as a whole the difference
    between public and private sector compensation
    appears modest. The relatively modest differential
    should make policymakers cautious about massive
    changes without carefully studying the specifics of
    their particular situation.”

    Alicia Munnell

    That includes New Jersey.

    And California.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 3, 2021 at 12:30 am

      There have been scores of compensation comparisons over the last thirty years and none of them are conclusive.
      I have your “conclusive compensation comparison” right here you Blithering Birdbrain:
      .

      1- “The Center for State and Local Government Excellence, the Center for Economic and Policy Research, the Economic Policy Institute, and the Center on Wage and Employment Dynamics (CWED) have all released similar studies arguing that the compensation that state and local workers receive is less than or equal to that of comparable private workers… While these studies measure wage differences more or less properly, none of them considers the full benefit premium enjoyed by public workers. A full accounting of benefits needs to include retiree health care, job security, and pension funding using the proper private-sector discount rate. After including these missing pieces of the benefits picture, state and local compensation is substantially higher than the estimates in the existing studies—and well above market levels.
      .
      Conclusion

      Whether public-sector employees receive above-market compensation is an empirical question that demands a thorough accounting of wages, benefits, and job security. In the case of California public employees, wages are slightly lower in the public sector. Initially, benefits appear only slightly higher, implying rough parity in compensation between the public and private sectors. However, properly accounting for retiree health benefits and defined-benefit pension plans generates a public compensation premium of around 15 percent. The additional job security granted to public-sector employees is equivalent to an approximately 15 percent increase in public compensation, meaning that the total public-sector pay premium in California may be as high as 30 percent.
      .

      2-“Why California Is In Trouble – 340,000 Public Employees With $100,000+ Paychecks Cost Taxpayers $45 Billion”
      Our auditors at OpentheBooks.com found truck drivers in San Francisco making $159,000 per year; lifeguards in LA County costing taxpayers $365,000; nurses at UCSF making up to $501,000; the UCLA athletic director earning $1.8 million; and 1,420 city employees out-earning all 50 state governors ($202,000).
      .
      3-“Transparency Website Shows True Cost of Unionized Government in California”
      The real shockers, however, are in the individual examples. On the Transparent California website, click on “All Pensions – 2012” and view the results. Three retired public servants collected pensions of over $500,000! Try your hand at Excel – click on “Download all Pension data for 2012” and sort by amount. The $200,000 pension club now has a respectable showing at 582 members. And the much vaunted $100,000 “pension club” now has 31,527 members. But why stop there?
      .
      The maximum Social Security benefit is currently a whopping $31,704 per year.

      .
      4-“Convicted City Manager in Public Funds Scandal”
      Robert Rizzo, Bell’s former chief administrative officer, stood at the center of the corruption scandal. In 2014, he was sentenced to 12 years in state prison and ordered to pay $8.8 million in restitution. His annual salary of $300,000 ballooned to $800,000 by the time he resigned in the summer of 2010, meaning he made twice as much as the President of the United States.
      .
      5-“California’s Government Workers Make TWICE As Much as Private Sector Workers”
      Earlier today the California Policy Center released a study that provided facts about government compensation. It examined state and local payroll data provided online by the California State Controller and proved that the average pay and benefits for a full-time state/local government employee in 2015 was $121,843.

      At the same time, the study found that the average pay and benefits for a full-time private sector worker in California in 2015 was half that much, $62,475.
      6-“At $140,000 Per Year, Why Are Government Workers In California Paid Twice As Much As Private Sector Workers?”

      Nationwide, government-worker compensation has been growing more rapidly than private-sector compensation for several years, but this trend is on steroids in California, where some state and local government workers are now paid roughly twice as much as those in the private sector.

      The California Policy Center recently examined public-sector compensation of full-time workers at two points in time: in 2012, when the California economy was still weakened from the recession, and in 2015. The study shows a high level of compensation for public-sector workers in 2012, and a subsequent high growth rate for compensation between 2012 and 2015.

      The California Policy Center examined pay records for more than two million state and local government workers (not including those in K–12 or college education) and found that average total compensation in 2012 for a full-time employee was $124,058 in a California city, $102,312 for county workers, and $100,668 for state workers. By 2015, total compensation had increased to $137,392, $117,425, and $116,887, respective to these categories. Adjusting for inflation, these are increases of 7.3 percent, 11.2 percent, and 12.5 percent, respectively, over this three-year period, compared to roughly a 3 percent increase for the entire US economy over the same period. Full-time private-sector workers in California received average total compensation of $62,475 in 2015.

      Reply

  3. Posted by Stephen Douglas on July 3, 2021 at 12:07 pm

    And –none– of them are conclusive.

    There have been scores of compensation comparisons over the last thirty years and none of them are conclusive. The most logical conclusion:

    “In short, for the nation as a whole the difference
    between public and private sector compensation
    appears modest. The relatively modest differential
    should make policymakers cautious about massive
    changes without carefully studying the specifics of
    their particular situation.”

    Alicia Munnell

    That includes New Jersey.

    And California.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 3, 2021 at 1:58 pm

      And –none– of them are conclusive.
      They’re ALL conclusive. Except to a Blithering Boneheaded Birdbrain like you. I just spanked your sorry ass into the middle of next week 🤸‍♀️🐾🤸‍♀️Sorry for making you miss the 4th of July 😺👍😺 Well, NOT REALLY!

      Reply

  4. Posted by Stephen Douglas on July 3, 2021 at 2:35 pm

    The Importance of Getting Public-Sector Pay Right

    “Most observers hold that a fairly-paid public employee is one who receives salaries, benefits, and job amenities equal in total value to what he or she would likely receive in a private-sector job. In other words, states should pay their employees the market value of their skills.
    “This standard requires that we do more than simply compare average public-sector salaries to average salaries outside of government.”

    Andrew Biggs

    OK so far.
    ……………………………………….

    A. “Some states pay large compensation premiums that are difficult to explain as anything other than “rents” accruing to public employees.”

    B. “In other states, however, differences between public and private sector pay are modest.”

    C. ” In a handful of states, public employees receive lower total salaries and benefits than comparable private sector workers.”

    Andrew Biggs

    Comme ci comme ça. Comparing the –average– “compensation premium” of different states. *
    ……………………………………

    A. “When benefits are added, total compensation for less-educated state government employees lies around 20 percent above private sector levels. *

    B. Total compensation for bachelor’s degree holders is about even with private sector levels.

    C. Professional degree holders such as doctors or lawyers and individuals with doctoral degrees appear to receive total compensation roughly 18 percent below private-sector levels, although certain unmeasured factors may compensate.”

    Andrew Biggs

    “… ay, there’s the rub!”

    William Shakespeare
    ………………………………………………

    In every state. (And most OECD countries.)

    Public employees can be divided into three cohorts:

    1. The least educated, low skilled, lower paid workers who, with their pensions and benefits, earn more (often much more) than equivalent private sector workers.

    3. Professionals and highly educated workers who, even with their higher pensions and benefits, earn much less than equivalent private sector workers.

    2. The middle cohort who earn “roughly equal” (+/- 5 percent) total compensation compared to equivalent private workers, even with their pensions and benefits. The classic paradigm of “deferred compensation”; lower wages while working in exchange for retirement security.

    Stephen Douglas, based on the studies of Andrew Biggs, and others.
    ……………………………………………….

    Question, if “…states should pay their employees the market value of their skills.”

    Where you gonna cut?

    Hint: not the average.

    * The “average” compensation premium in every state is driven by the lowest paid cohort. In every state. (And most OECD countries.)

    Corollary: Can you cut there? First, answer –why– the lowest paid public workers have the highest compensation premium.

    Reply

  5. Posted by Stephen Douglas on July 3, 2021 at 3:12 pm

    Note, using Biggs data, purely as an example*, when a lower cohort is “overpaid” by 20 percent, that is approximately $10,000/year.

    When the professional cohort is “underpaid” by 18 percent, that is approximately $32,000/year.

    When the middle cohort is neither overpaid nor underpaid, that is a good thing, which is rarely mentioned.

    “In other words, states should pay their employees the market value of their skills.”

    Biggs

    *”There have been scores of compensation comparisons over the last thirty years and none of them are conclusive.”

    “Just fund the damn pensions you one trick phony.©”

    Stephen Douglas

    Old lady: “It couldn’t hurt.”

    Reply

  6. Posted by Stephen Douglas on July 3, 2021 at 9:05 pm

    “… properly accounting for retiree health benefits and defined-benefit pension plans generates a public compensation premium of around 15 percent.”

    “California’s Government Workers Make TWICE As Much as Private Sector Workers”

    “…the compensation that state and local workers receive is less than or equal to that of comparable private workers…”

    “Total compensation for bachelor’s degree holders is about even with private sector levels.”

    “Professional degree holders such as doctors or lawyers and individuals with doctoral degrees appear to receive total compensation roughly 18 percent below private-sector levels, although certain unmeasured factors may compensate.”

    And…

    The definition of ” conclusive” is…
    “serving to settle or decide a question; decisive; convincing”

    Five different answers from five different sources ain’t conclusive. Even the fiscal dullards in New Jersey understand this.

    Just fund the damn pensions.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 4, 2021 at 4:26 pm

      Public employees can be divided into three cohorts:
      1) The Stupid
      2) The Super Stupid
      3) The SUPER DUPER STOOGIE/DOUGIEEEE Stupid

      Which one do YOU fall under Dougieeeee?? Don’t answer, we already know, it is a rhetorical question.

      Reply

  7. Posted by qpat00 on July 4, 2021 at 4:27 pm

    politican looking at a 10% increase in the budget he oversees, figures out a way to trim it to 6%. In the press release, the politican proudly proclaims he cut your taxes 4%.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 4, 2021 at 5:08 pm

      politican looking at a 10% increase in the budget he oversees, figures out a way to trim it to 6%. In the press release, the politican proudly proclaims he cut your taxes 4%.
      Believe it or NOT, this⏫⏫⏫ is standard operating procedure in CA. If there is a reduction in the PROJECTED PRO FORMA spending then this = tax cut! Ask Monkey Boi Douglas, even he will confirm…

      Reply

  8. Posted by Stephen Douglas on July 4, 2021 at 8:08 pm

    Michael Genest

    Chief financial officer for Arnold Governor Schwarzenegger. When he retired, formed Capitol Matrix Consulting. One of their first jobs (following the 2008 crash and recession) was a study comparing public and private pay in California.

    They determined California state employees were overpaid by about 30 percent.* When asked about his own compensation, Genest replied: “We could have made a lot more money in the private sector. We are making more money.”

    All three partners of CMC were retired state workers with pensions over $100,000/year. (That was back in 2010, when $125,000 was a lot of money.)

    He was most likely correct, as documented by Biggs and others, all three being in the “professional/PhD” category.

    Or it’s obverse:

    If you’re so rich, why aren’t you smart?

    “First, and most basically, the wage penalty or premium that a state government pays is not uniform throughout the distribution of workers employed by the government. It is generally believed that, due to the relative compression of wages paid in government, public employment is relatively more favorable to lower-skilled employees and less favorable to high-skill workers.”

    Biggs, Overpaid or Underpaid? A State-by-State Ranking of Public- Employee Compensation
    April, 2014

    That phrase is common to many comparison studies, and looks like a boilerplate disclaimer, but may in fact be the understatement of this century.

    How much more favorable?
    CBO, “Comparing the Compensation of Federal and Private-Sector Employees, 2011 to 2015”

    WAGES:
    “Overall, the federal government would have reduced its spending on wages by 3 percent if it had decreased the pay of its less educated employees and increased the pay of its more educated employees to match the wages of their private-sector counterparts.” (p.2)

    TOTAL COMPENSATION:
    “Overall, the federal government paid 17 percent more in total compensation than it would have if average compensation had been comparable with that in the private sector, after accounting for certain observable characteristics of workers.”(p.3)

    No suggestion of “reducing spending” by decreasing benefits of the less educated (and increasing benefits of the more educated?)

    because…

    “Among workers with a high school diploma or less education, total compensation costs averaged 53 percent more for federal employees than for their private-sector counterparts.”

    “Total compensation costs among workers with a professional degree or doctorate, by contrast, were 18 percent lower for federal employees than for similar private-sector employees, on average.”

    Of all the studies in all the world, I haven’t seen one that states the obvious; whether the claim is that the “average” public employee is overpaid by 30% (Genest), 72% (Heritage), 100% (CPC), 17% (CBO) or 10% (Biggs national average) ; the “average” is driven by the lowest paid public workers, and that is where the cuts have to come from.

    Why do you rob banks? Cause that’s where the money is.

    Most of these studies are conducted by the higher paid public and private economists.
    Why aren’t they smart?

    *One of scores of conflicting, nearly useless studies in the last decade.

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 5, 2021 at 1:15 pm

      They determined California state employees were overpaid by about 30 percent.* When asked about his own compensation, Genest replied: “We could have made a lot more money in the private sector. We are making more money.”
      Yeah, Right Moneky Boi … STFU you babbling Baboon…. :
      “Self-styled progressives at the turn of the 20th century gave Californians the initiative, referendum and recall as ways of circumventing a Legislature in thrall to powerful business interests. The reformers established local nonpartisan elections in an effort to check the outsize influence of political machines. They envisioned professionally administered cities overseen by men and women trained in the modern science of management. Men like Rizzo, who holds a master’s degree in public administration from Cal State East Bay… Little did the reformers realize a century ago that the civil servants would themselves become predatory interests, preying on the private sector and the taxpayer.

      Progressive reforms also led to the proliferation of independent state and local boards, commissions and special district authorities — the kinds of panels Bell City Council members appointed themselves to in order to inflate their salaries to more than $8,000 a month. They served on such diverse bodies as the Community Redevelopment Agency, the Community Housing Authority, the Planning Commission, the Public Financing Authority, the Surplus Property Authority and the Solid Waste and Recycling Authority. Public records show that those boards and panels met as little as one minute a month.

      When news of Rizzo’s base salary of $787,000 broke, he arrogantly told a Los Angeles Times reporter: “If that’s a number people choke on, maybe I’m in the wrong business. I could go into private business and make that money. .
      You are such a dork dougieee…. Ultimate Monkey Boi Dork 🐒🍌🐒🍌🐒

      Reply

  9. Posted by Stephen Douglas on July 5, 2021 at 3:20 pm

    A. “When benefits are added, total compensation for less-educated state government employees lies around 20 percent above private sector levels. *

    B. Total compensation for bachelor’s degree holders is about even with private sector levels.

    C. Professional degree holders such as doctors or lawyers and individuals with doctoral degrees appear to receive total compensation roughly 18 percent below private-sector levels, although certain unmeasured factors may compensate.”

    Andrew Biggs

    Reply

  10. […] Posted on July 5, 2021July 5, 2021 by Mary Pat Campbell Most New Jerseyans Are Fiscal Dullards […]

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 5, 2021 at 4:57 pm

      A. “When benefits are added, total compensation for less-educated state government employees lies around 20 30-200 percent above private sector levels. *
      Fixed for the resident Math Bonehead employed by Gov his entire life …

      Reply

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