Pension payment cut approved by Judge, 2% cap law signed - but these aren't the real problems.

(Tony Kurdzuk/The Star-Ledger)

So it finally happened, and I'm not surprised. On Wednesday June 25th, Superior Court Judge Mary Jacobson said that Christie's action "was reasonable and necessary under the circumstances of this budget shortfall of over $1 billion...and gave painfully few options with the two months left in this fiscal year".  I saw this coming, and even called this in my previous blog.  Once again, Judge Mary Jacobson took the easy way out.  Now he can save his budget, after blaming others for his financial mismanagement. Now he can have his krispy kreame doughnut and eat it too.  

Christie also recently signed the 2% cap law, which really is the least of the states problems. I can go into detail about this one too, but think most of the readers here realize that very very few municipalities actually go to arbitration.  This law is more hype than anything else.  "Oh my gosh, lets stop expensive arbitration awards", when the truth is that they are few and far between, and usually due to years of zero percent raises.

The police and fire pensions are not the cause of the drain on the state finances.  We are not wasting tax dollars.

But wait...our tax dollars ARE being wasted.  By whom you ask?  You mean all that money isn't going to the police and fire unions?  But according to the Governor, the Police & Fire unions, as well as the teachers unions are the reason we are in this mess.  Did he lie?  How could he mislead us.

Lets take a look at just the tip of the iceberg when it comes to wasted tax dollars by Governor Christie:

$65 million dollars in "emergency" Hurricane Sandy funds were spent on tourism television ads. "Instead of rushing aid  to the people who need it most, state-level officials in New York and New Jersey spent the money on tourism-related TV advertisements," the report states.

Abbot districts.  One of the biggest wastes of your tax dollars.  There are thirty-one districts that fall under this program. If you don't know what they are, here is the Wikipedia definition.  I can't even begin to tell you how much money is poured into this failed program.  
http://en.wikipedia.org/wiki/Abbott_district

$1.5 million in "ambiguous and non-transparent dealings" from bridge tolls: 
http://blogs.wsj.com/metropolis/2012/03/29/report-finds-toll-money-wasted-at-Delaware-river-port-authority/

$23.8 million dollars - the total cost for the primary and special elextion to fill the seat of US Senator Frank Lautenberg in October 2013, rather than waiting one month until the general election.

$150 Million - The amount AshBritt secured in NO-BID CONTRACTS from 53 NJ municipalities after the Christie administration secured their contract.

$390,000+  The amount the Governor and Lt. Governor cost the taxpayers using NJSP helicopters.

$1.2 Million paid to "politically connected" lobbying law firm Patton Boggs for fighting demands from the federal government to return the $271,000,000 spent on "Access to the Region's core project"

$279 Million - Loss to NJ taxpayers as a result of Gov. Christie cancelling the ARC tunnel project.

In Christie's first three years in office, he doled out over $2 Billion in tax credits and subsidies to 171 various projects.

He gave out $2.3 Billion in tax breaks for corporations in just one budget alone. (Times of Trenton 3/4/2013)

$261 Million was given in State tax credits to the Revel casino, which we all know is now bankrupt. (Philadelphia Inquirer 2/21/13)

$200 Million - cost of tax breaks Christie promised to the foreign company that took over the development of the Meadowlands Xanadue project (NorthJersey.com 5/3/2011).

$800 Million+ Money paid skimmed from the state's Clean Energy Program, paid by NJ residents, to make up for lost revenue under Gov. Christie's administration (NJ spotlight 4/24/2013)

$400 Million - Education funding lost because Gov. Christie refused to compromise and work with teachers' union on application for funding (Star Ledger 10/10/2010).

$3 Billion - Federal grant lost when Christie killed the Access to the Region's Core Tunnel Project (APP 12/27/2010)

$145 Million - Amount owned to the federal gov't for Medicare mismanagement (Star Ledger 1/12/12)

$171 Million- Expected losses from 2012-2018 as a consequence of Christie pulling NJ out of the Regional Greenhouse Gas Initiative (Environment NJ 2/15/2012)
http://www.onenewjersey.org/christie-by-the-numbers/


Giving the Philadelphia 76ers a grant worth at least $82 Million dollars so they can have a practice facility in Camden NJ
http://blog.northjersey.com/meadowlandsmatters/8707/philadelphia-76ers-getting-closer-to-moving-practice-site-to-camden-via-82m-grant/


Like I said, this is just the tip of the iceberg.  This state is hemorrhaging money, but police, fire, and teachers unions have been doing more with less for years.  The smoke and mirrors tactics by Governor Christie have pulled the wool over the public's eyes for too long.  It's time everyone saw Governor Christie for what he really is, which is a lying, sneaky slime-ball who can't balance a checkbook.  He can't keep blaming the unions for his poor financial management and decisions.

Fix it or forget it - the NJ pension issues

I'm not a fan of the Trentonian newspaper.  I think its better served as a blotter at the bottom of my bird cage than anything else.  Except for an occasional page 6 girl, there's not much worth reading in what many have called the "Trashtonian".  There are two columnists that are regular's for the Trentonian, L.A. Parker and Jeff Edelstein.  I've read their columns in the past, and I'm not really fans of either one of them.

Sometimes they spice things up and make things interesting.  On June 11, 2014, they did just that, but in an unusual way.  They each published opposing thoughts on the New Jersey pension problems on the same page.  The headline read "Split Decision: Should New Jersey's pension program be blown up?" Parker was in favor of keeping it, blaming the problems on the government, while Edelstein didn't blame anyone but whined about why we should scrap it and start from scratch, calling it "unsustainable".

Parker and Edelstein traded spars, but in my opinion, the winner by a knockout was L.A. Parker.  Please don't take this as a show of support for him; I've read lots of garbage in his columns in the past.  Today he shined just a little.  Case in point: Parker points out that Edelstein is a staunch Christie supporter.  I agree. Read his columns and you will too.  Parker also adds the fact that the most recent problems are the result of the Governor "miscalculated or misrepresented" revenue projections.  I again agree.  Christie tried blaming Dr. Rosen, the Chief Budget Officer for the states office of legislative service for the miscalculation.  What many don't know is that this same Dr. Rosen warned Governor Christie about this impending crisis, but the Governor brushed him off.  Later, when Governor Christie was called out on this miscalculation, he said Dr. Rosen "just got it wrong".  Actually Governor, he was right, and you ignored him.  Had you listened to the man who had a reputation for being right, you may not be in this predicament right now.

Governor Christie blamed the pension problems on past Governors, ignoring the fact that he participated in the same activities as his predecessors.  He reached deep down into the pension cookie jar, removed several large handfuls, handed them out to his friends at the playground, and didn't put the cookies back as promised.  To help "fix" the problem he help create, Christie raised the retirement age to 65, burdened public workers with higher costs and payments, and eliminated the cost of living increases.  L.A. Parker points out that "our leaders need to put all potential problem solving issues on the table including hiring practices, payments made for years of unused vacation and sick time, and practices that allow a double-dipping of pensions."  Again, I agree.  Multiple fixes should be on the table for this one, not just one.

Edelstein, on the other hand, gave little in the way of facts. In fact, he even got some things wrong.  For example, he states "None of this getting the average of your three highest salaries for life.  What a crock!  Really.  Get a 401(k) like the rest of us."  Lets talk facts here.  Nobody in in the Police & Fire pension, or the teachers pensions gets the average of your three highest years averaged out for the rest of their lives.  The reality is that it is a percentage of that number based upon the number of years in the pension system.  Spend 25 years in the Police & Fire pension system and you are eligible for 65% of that, not 100% as he makes it seem.  Spend 20 years in Police & Fire, and you get 50%.  Edelstein also remarks about how unsustainable the pension is now based upon the average life expectancy compared to when it was first put into place in the 50's.  What he completely failed to mention is the reason it it is "unsustainable" is because of the BILLIONS of dollars removed by the Governors, as well as the BILLIONS in missed payments due to "payment holidays" the municipalities were given by the Governor.  Yes, the pension is funded at about 65% (or less), but fifteen years ago it was over 100% funded!  This decrease was not due to payments to retirees or from current workers not making their bi-weekly pension payments.  This decrease is because of both Republican and Democratic Governors grabbing money from the public pension trough, using it for their own pet projects, and never repaying it.   PERIOD!  Jeff, you missed this.

L.A.Parker - 1   Jeff Edelstein - 0

P.S.  I wrote this blog very slow, so just in case you are reading it Governor Christie, you'll be able to keep up.

Our pension is in the hands of Judge Mary Jacobson - Oh no!

Fourteen unions are suing Governor Christie over the pension scandal.  The unions think the laws support a successful lawsuit, and the billions that were slated to be diverted will be put back in its rightful place.  I really do wish this were the case. This case is being heard by Mercer County Superior Court Judge Mary Jacobson, so don't hold your breath.  I really hope I'm wrong, but lets be real. This is politics at its core.

This is the very same judge that supported Governor Christie as recently as April 9th, 2014 by ruling that Bridget Kelly, his former Deputy Chief of Staff, and Bill Stepien, his former campaign manager, didn't have to turn over documents that were subpoenaed by the New Jersey Legislature.  Why?  One reason is that she felt the committee itself had the authority to enforce its subpoenas.  In essence, she distanced herself from enforcing subpoenas that could potentially negatively affect the Governor.  She decided not to make a decision.  She clearly knows who butters her bread, and didn't want to bite the hand that feeds her.
http://www.judiciary.state.nj.us/gwblaneclosure/Stepien+Kelly%20Opinion.pdf.  

Judge Jacobson is listed in "RobeProbe", a website that rates judges based upon notable decisions, published opinions, knowledge of law, control, work ethic, and absence of racial bias.  While this blog you are reading now has nothing to do with that website (robeprobe.com), it is worth noting that her overall rating on that site is listed as "very bad".  http://www.robeprobe.com/find_judges_result2.php?judge_id=1091.

June 25th will be the true test of Judge Jacobson's opinion, knowledge of law, ethics, and bias.  Lets hope she doesn't play politics.

Pension cuts head to court

On June 25th, oral arguments will be heard by Mercer County Superior Court Judge Mary Jacobson for a lawsuit brought by the NJSP union.  Judge Jacobson said she would decide whether Christie's plan violates the 2010 pension law that Governor Christie himself passed.  This will be a major challenge to Governor Christies plan to skip a huge pension payment for both this and next fiscal years.  Governor Christie said he needs to use the money to solve a budget crisis.

The Governor is planning on taking $900 million through an executive order he signed last month, and an additional $1.5 billion for the next financial year (which begins in 3 weeks).  Christie said the state constitution requires a balanced budget every year, and this money is needed to prevent huge cuts to hospitals or schools, or major tax hikes.  However, his failure to make the pension payments violates a law he created during his first term.  It also violates a section of the NJ state constitution that states, in part, "the Legislature shall not pass any bill...impairing the obligations of contracts".

The Governor has stated that failure to make these payments is fiscally irresponsible and taking the pension money was a "regrettable move", but the state can't afford to keep paying public workers the benefits they currently get. Lets not forget that this is the same Governor that just gave many of his own staff raises as high at 23%, while at the same time he requires others to stay under the 2% cap.  How can he call one thing fiscally irresponsible, but give huge raises at the same time? 

New Jerseys Moody's credit rating has been downgraded several times since Christie has been in office.  Fee's in New Jersey have skyrocketed.  The cost to register as a corporation fifteen years ago was $50 per year.  Today it is $500 per year; a 10-fold increase.  Motor vehicle fees have quadrupled in the past fifteen years.  These are not considered "taxes", so there is not much in the way of public outcry.  Is there really a difference between a state fee and a tax?  No.  When there is a shortage of money, you would think the Governor would created a solid tax base from businesses that are seeking to come to New Jersey, but he does the exact opposite.  Since 2010, the state has doled out over 2 billion dollars in incentives to corporations and developers.  Compare that number with the $1.5 billion given out in incentives during the prior 10 years. That money could have been used to our benefit, not to the benefit of corporations and developers.

Never in the history of our state has our leadership been so poor.  Lies, deceptions, double-speak, willfully not following the law, and so on and so on...

Judge Mary Jacobson, please make the right decision, and put our pension fund money where it was meant to be.







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