Report: Pension question would spike N.J. taxes
In a new report, the nonpartisan panel of experts instead called for various structural changes it said would save the state
The report comes as Christie, a Republican, prepares to deliver his annual budget address to the Legislature on Tuesday.
Christie devoted most of his time over the last seven months to his presidential campaign. But after placing sixth in
A year ago, Christie's commission proposed a plan that would reduce health benefits for public workers to comparable levels in the private sector and use the savings to pay down the state's
"The new commission report is just a rehash of old ideas that didn't work last year and don't work this year,"
The commission said in its report Thursday that contrary to some lawmakers' claims, the amendment would likely raise taxes not just on millionaires, but on less-wealthy taxpayers as well.
By 2022, the report said, the state would need about
Magyar said revenue growth would cover the costs, adding that Sweeney would consider a tax on income above
Pension and health benefit costs would consume 27 percent of the state budget, which the commission warned would "hurt the state's credit ratings, as it would deprive the state of the flexibility needed to respond to emerging public needs and weather economic downturns."
The report added that "the extreme preference given to pension funding under the amendment appears at odds with basic principles of public policy."
"The premise of the amendment is that funding employee benefits -- not protecting the health, safety and welfare of the public -- should have the first call on the state's funds.
A law Christie signed in 2011 required public workers to pay more toward their pensions and health benefits, but the governor has reneged on the law's provision that the state also increase its share of the contribution. The state Supreme Court rejected a lawsuit filed by public-sector unions that challenged Christie's pension cuts.
Christie's panel, known as the
Early retirees -- public employees who retire before the age of 65 -- should receive health coverage through private exchanges, the report said. The state would provide annual funding to help retirees purchase coverage for a gold plan.
Finally, the commission calls for some local funding of teachers' pensions and health benefits. Currently, the state funds all of those expenses. This wouldn't increase property taxes, the commission said, because local governments also could save money by adopting similar changes to funding retiree benefits.
Magyar, Sweeney's spokesman, said shifting these costs to school districts would add to the property tax burden.
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