Recently, the National Association of State Retirement Administrators recognized New Jersey as having the most underfunded pension system of all 50 states. They said that the NJ pension fund could be out of money by 2027 http://www.nj.com/politics/index.ssf/2015/03/nj_pension_system_most_underfunded_of_all_50_state.html#incart_river.
This isn't too much of a surprise, since New Jersey skipped pension payments completely from 2001 until 2004, and have generally put in less than the required payments since the mid 1990's. This resulted in billions less being put into the pension accounts, while at the same time, benefits increased. Keep in mind that during this time, all of the union workers kept making payments without skipping a beat, and were forced to increase their pension payments to keep the pension funded. In addition to an increase in payments, the retirement age was increased, and the cost of living adjustment was eliminated. It hasn't worked out so well, and currently the state faces an $83 billion unfunded pension liability. This is by no fault of the union workers, but the blame lies squarely in the laps of our current Governor and his predecessors.
Governor Christie has touted the pension reform from day one, even after promising the unions not to touch their pensions. It has been the mainstay of his soap box, and continues to this day. It's a shame that the hard working union members, who have made pension payments from day one of their employment, have to be the scapegoats for the failures of the Governor.
What I find upsetting, is how the Governor has been basically mum about reducing the benefits (handouts) that are given to a slew of residents, both legal and illegal, that have been on the receiving end of our tax dollars. These are the same tax dollars that the Governor says is lacking to the point of an almost broke TTF (transportation trust fund). Just as an example, according the a study by the Center of Immigration Studies, in 2009 (based on data collected in 2010), 57 percent of households headed by an immigrant (legal and illegal) with children (under 18) used at least one welfare program. You saw that correctly. Fifty-seven percent. Over half are receiving welfare benefits. Nationwide, Newark, NJ ranked No. 1 on a list ranking the cities across the country with the highest percentage of households on welfare. That' right: NUMBER ONE in the country. Where is the outrage and public condemnation? (Insert sound of crickets here). Welcome to the welfare state.
While there have been some minimal reductions in welfare, the funding doesn't seem to be in the spotlight like it was years ago when "work-fare" instead of "welfare" was a hot topic. Currently, the attention seems to be aimed directly at those that helped fund the welfare bottomless pits: the taxpayers. Don't get me wrong; there are very legitimate uses for welfare. It should be a temporary crutch to get a person or family back on their feet. One of the problems is that many have come to rely on this crutch as an income with no end. Fraud is rampant in welfare. Additionally, what incentive does someone have to work when welfare pays more?
The Governor is all about "reform", specifically PENSION REFORM. It's about time that the Governor change directions and take a good hard look at WELFARE REFORM instead. Welfare is supposed to be temporary, while a pension is for life. One of the huge differences is the welfare recipients are receiving money put there by others, while the pensioner is receiving money put there by him/her, employer contributions, and the pension fund investments. The number of people taking some type of welfare or handout from the state vastly outnumbers those receiving pensions. This may be why the Governor doesn't want to piss of those voters...I mean constituents.
While there are some attempts to reform welfare into a form of "work-fare", surprisingly enough, the ACLU is objecting to it for a variety of reasons, including calling it a form of discrimination by making someone work for their benefits. How dare the government make someone work for their benefits! I don't recall the ACLU supporting me in my twenty-five years of working in order to get my benefits (which I paid dearly for).
According to US Government Spending.com, in 2015 New Jersey will spend $9.7 billion in the pension systems (all of them), while at the same time, spent $9.1 billion in welfare. Where will this money come from? The pension money comes from the union members, employer contributions, and investments. The welfare money comes from taxes. Your taxes. My taxes. Reducing the rampant welfare fraud, and requiring welfare recipients to work for their handouts should be just the start.
This is where the Governor should be focusing, not on the already beaten down union members who have worked their entire lives and put more money into the system than anyone else. We've given enough.
If history is any indication of how he will do as a Presidential candidate, he will embarrass New Jersey.
Just my opinion.
Note: Ok, so the headline may be a bit deceiving. Do I honestly think welfare is "over funded"? No, not really, but I do want it reduced substantially through various means. Welfare (workfare) has its place, but not to the extent it is being used now for "entitlements" or handouts.
