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Corzine talks Property Taxes and Pension Deferrals

by: Jason Springer

Fri Nov 28, 2008 at 10:24:39 AM EST



The Governor put out a video talking about how he is trying to avoid many of the double digit tax increases with his plan that will allow municipalities and counties to defer half their pension payments.  He says these extraordinary times call for extraordinary measures.  See for yourself:

I understand the Governor is trying to soften the blow, but the questions will  come up regarding the mix between politics and practicality with this situation. People are certainly struggling, but it's also harder to run for re-election defending enormous tax increases. Eventually we are going to have to pay for this and it may be a larger amount with the interest that will be factored in.   What happens if towns are still struggling in 2012, do we defer again? At some point we are going to have to start working on the cause of the illness, not just the symptoms.
Jason Springer :: Corzine talks Property Taxes and Pension Deferrals
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Corzine steals one from McGreevy (0.00 / 0)
Anybody else find it ironic that  Corzine make a mcGreevy pension scheme video ,he must raise tolls the same week ?  

John Bury (0.00 / 0)
Over at NJ voices has put forth an argument stating that the pension fund will miss its obligations in 5 years. Is there any truth to the numbers he is using? If so, should people (specifcally retirees) be running around with their hair on fire?
Then the gov. suggests deferring payments for 3 years? What am I missing? Are Mr. Bury's numbers pure fiction?

"Where ever you go, there you are." - Buckaroo Bonzai

john bury (0.00 / 0)
i know john bury and he has been writing about the pension fiasco for a long time....i think he is an actuary and he knows what he is talking about....you should listen to him!!!!

John Bury (0.00 / 0)
I am John Bury and I am an enrolled actuary.  NJ like other gov't plans has politicians making up their own funding rules and that's why many are facing bankruptcy.  I give NJ 5 years because they're only putting in about $2 billion (combined employee and state) and paying out $6 billion (and that will explode because of ERIs, COLAs, and retirees just not dying as quickly as assumed).  With less than $60 billion in the plan now and no serious benefit cuts on the horizon, this is a dead plan.

The reason retirees aren't worried is they assume the checks will always keep coming and nobody has clued them in.  In that way, they're like United Airline pilots, except they don't have PBGC coverage of their benefits.

I've been writing on this on njvoices since 2/08 and even confronted Corzine on it.  For more perspective check out pensiontsunami.com


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