State's Failure To Make Full Pension Payments Hinders Fund

Posted on January 25, 2012 by Donald Barbati

 

As reported by nj.com, public pension funds may have gotten a much-needed boost from Governor Chris Christie’s landmark overhaul last year, but reports released show the funds continue to be hampered by the State’s failure to make full payments into the plans. 

Christie and Democratic leaders joined together last year and shifted a greater share of the pension costs on to public workers and cut out cost-of-living increases for future and current retirees. The move helped drive the State’s nagging unfunded pension liability from $53.9 billion to $36.3 billion when they revised 2010 figures, the report shows. 

But the State’s pension hole grew by $5.5 billion by the end of the 2011 budget year, largely because Christie followed in the tradition of his predecessors and failed to make a pension payment, an annual actuarial report on the pension funds shows. Overall, the State has only 67 percent of the money it needs to meet its future pension obligation, and that figure is expected to worsen as the State phases in its full pension payment over the next seven years.

The State was supposed to pay about $3 billion into the pension fund this year, but will only be paying about $480 million. Next year, the State will only pay about $900 million of its $3 billion bill, records show.

By 2018, State taxpayers will begin paying more than $5 billion a year for pensions, roughly ten times higher than the partial payment being made in this year’s budget, according to administration estimates. The tab for local taxpayers will rise by about $600 million by 2020, estimates show.

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Attorney General: State Police to Get Funding for New Troopers, Cars, Staff

Posted on April 12, 2011 by Donald Barbati

 

As reported by nj.com, despite a new round of public safety budget cuts, it could be a good year for the State Police. There will be new troopers, new cars and new civilian support staff in the upcoming budget year, Attorney General Paula Dow said.

Dow told the Senate Budget and Appropriations Committee that the State Police is a “core funding priority” for Governor Chris Christie. “The class is expected to begin this August and provide us with approximately 100 new state troopers by graduation early next year,” she said. The class is expected to cost $3 million.

The State Police’s ranks are being depleted by a spike in retirements. Even with the new class, the total number of troopers is projected to drop from 2,819 this summer to 2,799 in June of next year. Another 50 civilians will be hired to handle administrative tasks, allowing higher-paid troopers to focus on police work, Dow said.

The State is also buying 325 new vehicles. Marked cars cost $51,000 while unmarked cars go for $30,000, according to Lee Moore, spokesman for the attorney general. About 850 State Police cars, 37 percent of the total fleet, have reached the 125,000 mile threshold and require replacement. Between the current fiscal year and the next fiscal year, 725 of those cars will be replaced.

Aging vehicles have been a concern for the Christie administration. The governor’s transition team reported that “certain elements of the State Police vehicle fleet have deteriorated to the point where safety is an issue.” 

The Department of Law and Public Safety, which oversees the State Police, is facing a $5 million budget cut. However, other areas of the organization will likely see new staff members. The state’s Division of Law, which has lost 100 lawyers because of a six-year hiring freeze, is expected to hire another 33 attorneys. The Office of Forensic Sciences, which operates the state crime lab, is slated to take on 29 new people, including scientists and evidence handlers.

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