New Jersey’s Deep Crisis…..Inquiring Minds Wonder Who Is Next? Like Roaches, There Never Is Just One! First To Come To Mind Are Illinois and California
Posted By thestatedtruth.com on August 30, 2010
Another fraudulent entity, this time it’s a state……The state of New Jersey’s most recent report said that as of June 2009, its pension funds should have assets of $112 billion to meet their future obligations, but have only $66 billion now — This is one of the largest shortfalls of its kind, and is known as an unfunded liability!  The state said even if benefits are cut and taxes raised, there is no obvious fix in sight. Ouch!
Behind Fraud Charges, New Jersey’s Deep Crisis
By RICHARD PÉREZ-PEÑA
New Jersey got in trouble with federal regulators this week for misrepresenting the health of its pension funds. But the bigger problem may be what the state was trying to hide: a long-brewing crisis in its ability to pay retirees.
Experts say that governors and legislators, Republicans and Democrats, have all contributed to the problem by refusing to put state money into the funds as they should have. And even if benefits are cut and taxes raised, they said, there is no obvious fix in sight.
“The whole political culture evolved where the purpose in Trenton was to spend and defer the problems until later,†said James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.
The state’s most recent report said that as of June 2009, the pension funds should have had assets of $112 billion to meet their future obligations, but had only $66 billion — one of the largest shortfalls, known as unfunded liability, in the country. The situation is probably worse today: The state is supposed to contribute about $3 billion a year to the funds, but amid huge budget deficits and spending cuts, it is in the second consecutive year of contributing nothing.
More…     www.jsmineset.com
Comments