It’s a responsibility that we have turned our back on, and the way we have turned our back is shameful,” Governor Jon Corzine, discussing pension underfunding on Dec. 2, 2005
Republican Senate Leader Tom Kean said this after Democrats blocked a Senate vote on Governor Corzine’s plan to allow towns to defer pension contributions for the next three years:
“In the past, Governor Corzine decried the underfunding of state pensions and the use of one-shot measures to paper over fiscal problems. This pension gimmick commits both sins, and it’s a bad deal for both workers and taxpayers. That’s why all 17 Republicans stood firm against it in the Senate today, and will in future legislative sessions.
“This measure would almost certainly force citizens in the future to choose between breaking promises made to public employees or accepting huge taxes and cutbacks in important services. Instead of making Trenton more accountable to today’s taxpayers, it would push the expense of pensions off on future generations who had no say in the ill-advised policies our governor is advancing today. It would have made New Jersey less affordable for everyone.
“The governor has left no doubt that this pension deferment would be a temporary loan to towns from the pension funds that will have to be paid back in full. The estimated interest rate on the borrowing is 8.25 percent. That’s a far higher rate than what Wall Street would charge on $1.3 billion borrowing. That’s a costly fix for a problem that cries out for a responsible, long-term solution.
“The governor should abandon forever this poll-driven attempt to provide illusory property tax relief. The governor should instead champion true pension reform that will really save money and secure worker retirements. As always, Republicans stand ready to work with him on affordable, common-sense solutions to our state’s economic problems.”
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February 11, 2011
