To mark New Jersey’s 350th anniversary, the New Jersey Chamber of Commerce is polling state residents about what they believe has been the state’s greatest achievement. Among the choices: such things as the invention of the light bulb and the phonograph, new antibiotics, solar panels, condensed soup and salt water taffy. But if the Democratic leaders in the state legislature continue to hold firm in their opposition to Governor Chris Christie’s raid of the state pension fund to balance New Jersey’s budget then the state’s greatest accomplishment may turn out to be the Democrats determination to protect a decent set of benefits for the middle class.
And if they do continue to fight against Christie’s wrecking-ball attack on the benefits of state workers, it would cripple Christie’s argument that he should be the 2016 GOP standard-bearer because he knows how to work across the aisle to enact harsh budget cuts.
Yesterday the state senate president, Stephen Sweeney, said the Senate would not go along with Christie’s pension grab. Instead, Sweeney and the Senate majority leader, Loretta Weinberg, unveiled a tax plan alternative. They proposed higher taxes on people earning more than $500,000, a one-year suspension of several business tax breaks and grants, and the imposition of a surcharge on corporate taxes, raising nearly $1.6 billion for fiscal 2015. In announcing the plan, Sweeney said it would maintain the pension payments promised, keep state borrowing costs down by keeping up the state’s credit rating and maintain the other key services that the state provides:
Also a matter of fairness is that this plan will make the full pension contribution that the governor promised. We must keep that promise. Staying true to the promised payments is also a matter of financial integrity. Abandoning the promise will cost more in higher interest rates and lower credit ratings. This plan is not only a matter of fairness and responsibility with pension payments, it is really about the full range of government services and opportunities, including such things as property tax relief, college affordability, public schools, law enforcement, transportation and many more priority needs. We have to maintain the state’s commitment to all New Jersey residents by meeting all of our commitments.
It was Sweeney, a protégé of political boss George Norcross, the businessman power broker who controls Democratic politics in South Jersey, who was instrumental in initially helping Christie ram a harsh state employee pension deal through the legislature in 2011, cutting benefits, increasing employee payments and raising the retirement age. In exchange for this, state funding for the pension fund was to be dramatically increased to improve its long-term solvency. But in May Christie ripped up the agreement when tax revenues fell short of estimates, forcing him to come up with money to balance the budget this year.