Credit Rating Agency Fitch Downgrades New Jersey, Citing Unfunded Pension, Benefit Liabilities

[Purveyor]

Source: NJ.COM

TRENTON — The credit rating agency Fitch has lowered New Jersey's general bonds, citing unfunded pension and employee benefit liabilities.

The agency wrote that making an increased pension payment, which Christie has said he will do, will "conflict with other long term challenges, such as property tax relief, school funding, and infrastructure needs."

"The state's budget remains structurally imbalanced inclusive of unfunded pension contributions," the agency said in the downgrade announcement. "Reserve balances are expected to remain narrow, offering limited flexibility to absorb unforeseen needs."

Fitch dropped the state's rating from "AA" to "AA-."

The governor's office referred comment to the Department of Treasury.

Read more: http://www.nj.com/news/index.ssf/2011/08/credit_rating_agency_downgrade.html

[ChandlerJr]

1. Another attack on public employees pension and benifits

and you can bet Christie will use it as a bludgeon to get the public employees unions to make concessions like Cuomo did across the river.

What's the difference between a Democratic Governor and a Republican Governor?

Nothing.

[underpants]

2. Oooh oooh just as Christie Kreme is using focus groups to research a presidential run

Okay "run" is ironic when used in a sentence with the Kreme-y one

[GentryDixon]

3. There seems to be a conspiracy going on here.

Again unions are being blamed for all that ails, be it the Postal Service, New Jersey, whatever.

You cannot convince me this is not a direct effort bought and paid by cronies of the Republican establishment.

[sarcasmo]

4. Billionaire Republicans trying to crush the pensions.

[Samantha]

5. I read some time ago several states were not making required contributions to employee pension plans

I think the "shortfalls" were caused by the state governments (usually the Governor) skipping the state's required pension plan contribution to spend the money on other needs. Now that it is all about to catch up with them, the outcry is coming from certain State governments that state employees received way too much in terms of pensions. I am pretty sure N.J. was one of those states granting themselves a "holiday" from this payment.

For some strange reason, I thought at that time this is illegal. :eyes:

Sam

[Flatulo]

6. It is a real problem. Unfunded pension and health care obligations

now exceed $1 trillion. This money has to be raised somehow.

Only six states are fully funded. The rest are putting IOUs into the funds.

There's a disaster coming if this isn't addressed.

[nc4bo]

7. All that revenue and NJ is in the hole - I just don't understand it

High as hell property taxes, high as hell real estate prices, huge surcharges for motor vehicle infractions, airports, chemical plants, toll roads, casinos.....

Whoops - How could I forget that lottery that's supposed to benefit senior citizens (Do they still say that?)

If anything NJ should at least be keeping its head at least close to the waterline. It's got everything going for it.

:wtf: Never could understand how NJ could be so broke.

[bklyncowgirl]

8. Gee I thought that the Lottery was supposed to benefit education?

Education, Senior Citizens, whatever. New Jersey is broke in part because it is the home of home rule where every dinky little town HAS to have it own school system, police department, etc. with its own staff of administrative personnel for each not to mention crooked politicians and a public which demands the best, mayors and governors addicted to shiny new sports stadiums are

There's no one cause and plenty of blame to go around. I'll even be willing to say that some pension deals over the years were waaay too generous. For example,Public workers hired before 1997 actually get to keep their full amount of accrued sick leave--that can be over a year's worth. I don't blame the unions--their job is to get the best deal possible for their members but I do blame craven politicians who did not do their duty to look into the future and think about what would happen when they were agreeing to these terms. Of course governors, especially Christie Whitman deliberately underfunding the pension system over the years in order to make it look like they were balancing the budget did nothing to help.

[nc4bo]

10. I remember during the lottery drawings, they'd make a big deal saying it helped senior citizens

my mom can too.

ETA: It's been a long time come to think of it. Since we lived in the tri-state area of Philly/S.Jersey/Delaware and got most tv programming from philly, it very well could be Pennsylvania I'm remembering.

...I hate getting old. I'll double check with mom and see what she remembers.

[bklyncowgirl]

12. It doesn't matter, most likely neither seniors nor school kids are benefitting. nt

[nc4bo]

13. The lottery is complete BS in NC. Big promo for the "education lottery".

Freaking joke. Rather than give a windfall to our schools it's given through one door and taken out from back.

Education system never really sees any of the money and God only knows the system here could use it.

Big BS shell game.

ETA: Just spoke to my mom and she remembers the NJ Lottery drawings said it was going to help senior citizens. She said she remembers James Florio saying the lottery would benefit senior citizens.

Funny how that lottery money never manages goes where it was intended to go.

[No Elephants]

9. Newman!

Er, I mean, Christie!

[Joe Bacon]

11. The legacy of Christie Todd Clueless

Nice to see her legacy come back to bite Screw Christie in the ass. Gosh, it sure sucks to have the wrong kind of lighting strike him again! :rofl: