Christie Cuts Pension Payment, Sets Up Battle With Legislature and Unions

Teachers plan lawsuit, state bond rating may drop.

Facing yet another budget shortfall, Gov. Chris Christie yesterday said he would slash pension payments by $2.4 billion, abandoning the pension-funding plan that was the signature achievement of his governorship and triggering a major confrontation with the Democratic Legislature and the public employee unions over the future of the state’s pension system,” reports.

Indeed: the New Jersey Education Association said it would file suit to restore the cuts. And Moody’s Inestment Service condemned Christie’s action.

“Christie’s actions directly violate the provisions of the 2011 pension law he and Sweeney championed that obligated the state to bail out the deficit-ridden pension system by a seven-year ramp-up to full actuarially required funding by Fiscal Year 2018, which would have required a final-year payment estimated at $4.8 billion in last Christie’s budget,” adds. “Now the Legislature will be forced to choose between accepting Christie’s cuts, raising taxes, or finding deep cuts to other programs.

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  • Bullwinkle

    People liked Christie because he is a big-mouthed bully who talks a good game. Somehow his aggressive personality traits were mistaken for the most important trait a governor can have, which is competency.

  • Poytszi

    Christie seems to have little if any credibility. New Jersey has to come to the realization of empeachment of the governor.

  • Joe Jones

    When Christie began his attack on schools he said that he was attacking the union, not the teachers. That was apparently not true. Disregarding a law, one that he wrote, that funds pensions is hurting teachers, not the union. While they have been his primary target, other state workers have also been hurt financially by his actions. This governor is all about big money and power. He has no respect for the people of the state, as witnessed by his actions and the way he treats those who speak against him at town meetings.