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November 26, 2008

Continuing On Our Theme

I find this via Insta on the state of NJ's pension system

New Jersey's pension fund has lost more than $23 billion this year, dropping to its lowest level since 2003 as a collapsing financial market battered its investments, a new state report shows.

The latest losses -- nearly $9 billion in October, and another $3 billion so far this month -- mean the fund is now worth $57.8 billion, or less than half the $118 billion in benefits it is due to pay out over time.

And our glorious Governor's cunning plan to fix things?

While Clark delivered his report to the State Investment Council in Trenton, Gov. Jon Corzine was in Atlantic City promising a convention of local government officials that he would let them postpone about a half-billion in payments they are scheduled to make to the pension funds in April.

Specifically, Corzine proposed letting local governments skip paying $541 million of the $1.1 billion due. They would gradually work their way back to full payments by 2012 under his plan.

Brilliant! The plan is under-funded, so the best way to solve the problem is to fund it even less.

And when you consider this

New Jersey is $60 billion in the hole on pension funding and the Governor is planning on skipping payments in a "pension payment holiday" until 2012 so as to not increase property taxes. To top it off, the ongoing plan assumptions are 8.25%. Sorry NJ, that simply is not going to happen.

Our state is in a huge mess, and I haven't seen anyone in either party come up with a realistic solution...or even an honest assessment of the state our state is in.

Oh, but let's spend over $100 million on a new football stadium for Rutgers.

Posted by Mr. Bingley at November 26, 2008 09:05 AM

Comments

Corzine was on the local TV news last night. The caption under him did NOT read "D - Governor of New Jersey." It read "Advisor to Obama." They then cut to a shot of Obama at a podium with a sign reading "Office of the President-Elect."

Sweet smoking Judas on the disco floor...

Posted by: nightfly at November 26, 2008 10:04 AM

Maybe it's time for some leveled headed, intelligent, independent American to run for Governor of the great state of New Jersey?

Posted by: Val Prieto at November 26, 2008 11:32 AM


And given the problems infecting New Jersey his first act should be to demand a recount.

Posted by: Yojimbo at November 26, 2008 10:09 PM

Yes, but where to find such a person, Val?

Posted by: Mr. Bingley at November 27, 2008 08:39 AM

I don't think the problem is finding that person. The problem is finding a sufficient amount of voters to elect him/her once they fully understand what is involved in restoring your state, or a few other states that are in the same mess. You have a number of states where the fiscal tipping point has been passed. You know what's needed-a massive rationalization of services has to be undertaken.

Are states like New Jersey, New York and California willing to do that or are they going to ask the taxpayers of responsible states like Utah to foot their bill?

If the answer is heck no we can do it ourselves,the right people will be found.

Posted by: Yojimbo at November 27, 2008 12:11 PM