November 25, 2008
Contact: Andy Pratt / (609) 292-5199Senator Kevin J. O'Toole (R-40), Senator Tom Kean (R-21)
William Clark, head of the state Division of Investment, made one thing clear when testifying on Monday before the Senate Budget and Appropriations Committee about the pension system’s $23 billion in investment losses: The best strategy for keeping the pension system sound is to make regular, uninterrupted contributions, in good times and bad.
Senate Republican Leader Tom Kean and Senate Republican Whip Kevin O’Toole issued the following statements in response to Clark’s testimony, which clearly illustrated the foolhardiness of Governor Jon Corzine’s proposal to let local governments postpone pension payments, a practice that has helped push the state pension system nearer to insolvency:
“For the past seven years, Trenton has been kept in perpetual fiscal crisis by irresponsible governors and legislators,” Senator Kean said. “Their response to any financial difficulty has been a gimmick that pushes the problem off on our children and grandchildren. We now face a real crisis, and the governor’s response is predictable. Delay tough decisions. Postpone pension payments because it will help boost poll ratings before the next election. It doesn’t matter if a huge problem will remain unsolved. Let future governors and Legislatures deal with it. This proposal defines fiscal irresponsibility.”
“This proposal is so cynical and irresponsible, that I’m amazed that it came from the former CEO of a once-respected investment bank,” Senator O’Toole said. “The governor promised he would never use fiscal gimmicks. This is yet another promise he won’t keep. A courageous leader would use this crisis to prepare the state for maximum growth when the inevitable economic recovery comes. Instead, he’s taking steps that will force future mayors and city councils to raise taxes at the same time they cut services to the taxpayer. This may be the most irresponsible Democrat gimmick of all.”
Link to Post:
Similar Posts:
- Tom Kean: Republican Senators United Against Corzine Pension Gimmick
November 24, 2008 - Kean & O’Toole: Corzine Kicking Can Down the Road & Middle-Class Taxpayers in the Teeth
November 21, 2008 - Republicans Vow Corzine’s Attempt to Starve Pensions Won’t Go Unchallenged
December 10, 2008 - Corzine Scheme Would Push Pension Costs Past Gubernatorial Election
November 20, 2008 - Corzine Keeps Door Open for Irresponsible Pension Gimmick
December 19, 2008
