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The New Jersey pension crisis | IN 60 SECONDS

The New Jersey pension crisis | IN 60 SECONDS


New Jersey has a severe pension crisis. The unfunded liabilities for pensions is 95 billion dollars. The entire New Jersey state budget is 35 billion dollars. New Jersey does not have the money to pay for these pensions. How did New Jersey get into this situation? The simple answer is that it is a direct result of the enormous political power of the New Jersey Education Association, the state’s largest teachers union. Over the course of the last 20 years, NJEA has spent over 800 million dollars on its various political tools. With that kind of money, NJEA got what it wanted on pensions. Recently NJEA sought to enshrine this bankrupt system in the state constitution. Senate President Steve Sweeney stood up to NJEA. NJEA then exacted revenge by vowing to support senator Sweeney’s opponent in the Democratic gubernatorial primary and forcing Sweeney to withdraw from the race. Now NJEA has a politician who will do its bidding, thus encapsulating the New Jersey pension crisis. I’d like to know what you think about New Jersey’s pension crisis. Let us know in the comments section, and also let us know what other topics you want AEI scholars to cover in 60 seconds.

29 thoughts on “The New Jersey pension crisis | IN 60 SECONDS

  1. This situation is going on all over the country, California's problem is far worse.

    State employee's did nothing wrong, neither did the unions. It was the politicians (now long gone) who are responsible. It was also the voters who should have known better.

    The question now is, Who bears the pain?

  2. Fuck the NJEA. I grew up in NJ and they never gave a shit about us. In fact the only times they did care was when they wanted a pension raise so they'd use students as their weapon. Fuck 'em!

  3. Teacher's unions are a plague on western civilization. Take a job with the least need for a union, add in the most entitled workers on the planet and have them represented by left wing ideologues and you get the most expensive bureaucracy delivering the worst results.

  4. Here is a fun fact about NJ, they put a special tax on you for moving OUT OF the state. /not kidding. So no surprise on NJ becoming a third world shit hole.

  5. Could have done this video in less than 1 second. Why is NJ having a pension crisis? Unions. Bam, answered and done in less than 1 second.

  6. I'd love to see more on this in other state or national contexts, wherever public sector unions have succeeded in putting public budgets in crises in order to get what they want at the expense of taxpayers.

  7. Online K-12 Education solves our problems on many fronts. First, allows parents to select the best curriculum channels suited for individual children strengths and weaknesses. Second, it fosters a competitive public marketplace for the best online teachers/instructions to rise to the top based on parent/student feedback and results. Third, dramatically reduces costs and therefore property taxes by reducing staffs, salaries, pensions, healthcare, brick and mortar locations and transportation risk and expenses. Fourth, increases child and faculty safety and security concerns since education happens in the safety of the home, without snow days and at a pace and schedule selected by students and/or parents. Fifth, only families with participating children have to pay due to reduced costs and overall savings.
    The idea is worthy of further exploration and represents organic evolution of higher education today and K-12 tomorrow. Spread the word! 🙂

  8. The lies start 24 seconds into this horseshit video.

    Dear Mr. Adjucnt Scholar (Whatever in the hell that is) the way we got here was by governors starting with Whitman not paying the state's share of the pension payment and instead redirecting that money to balance the budget and calling it tax relief. The pension system was 100% healthy and fully funded PLUS before that. Teachers have faithfully made every payment every 2 weeks in the meantime. It takes nerve to think everyone in your audience is so stupid as to believe the half a story you're telling here.

    A pension is a contract and by law the contract must be honored. You can stamp your feet and lay blame irresponsibly all you like but the pensions will be paid and better still this buffoon in Drumthwacket poisoned the well for ever getting a compromise on those contracts ever again.

  9. THANK YOU for pointing this out.  Even the most uninformed among us should understand this.  Mr. Murphy will shower affection upon the NJEA.  We do not have a functioning democracy in this state.  The Institutional Democrat Party has guaranteed this by gerrymandering any competitive race to their favor.  At this point we may as well establish peerage.  The taxpayer will not and does not have a seat at any the negotiation table.  The unions buy and pay for candidates – with taxpayer money – just to heap abuse upon said taxpayer.  Paying for the bullets used in your own execution.

  10. The union did not cause the crisis by themselves. Other parties, including legislature and voters, were complicit. I would have liked this video presentation to have been more balanced.

  11. Baloney….cause was Governors not funding the pensions for decades starting with Christy Todd Whitman and going forward. Thieves all.

  12. Gov. Florio started the  State take over of private pension systems … like the PBA. The PBA (Police in north Jersey) was fully vested and had tremendous assets by investing wisely … they also loaned mortgage money to member at very low cost. The states claim was that public money was part of the assest via Union contributions and they were entitled to the reserve. Politicians were banned from "borrowing" bc they NEVER paid loans back … what a shock. Gov. Whitman was in office when the court case decided in favor of the state … another shock. Do you really think a judge hired by politicians would go against them?  Anyway Whitman was not about to turn down 9 billion dollars. It was the richest Union in the nation.  A superfund was set up to pay the fuure Union dues of all NJ towns, (not just PBA towns) and the politicians gave themselves pensions from the fund after serving a second term (4 yrs) while members continued to pay and had to serve 25 yrs to get their pension. After 12-13 yrs this fund was GONE. Towns who had not paid pensions for all those years were shocked and claimed they didn't budget any payments; they defaulted and the fund was now severely in the red.  The teachers and fireman pension systems were all merged into this basic state pension system. The system was ignored for many years until some law suits over pensions surfaced and the state cried we have no money. All of a suddent police made too much money and our pensions were too expensive. Of course other factors were involoved. Bottom line members won a law suit for COLA (Cost of living) raises, which has never been paid … another gave the pension system a repreive saying they could hold off unti the fund was vested to 89% … it's close … but I doubt they will surpass 89% because then they would have to pay out legitimate COLA raises. NJ politicians are lying scumbuckets.

  13. DONT WORRY JUST KICK THE CAN DOWN THE ROAD SO YOUR KIDS AND YOUR KIDS KIDS HAVE TO PAY……..SCREW THEM CUZ THEY CAN HATE YOU LATER …..SO YOU CAN CONTINUE TO DRIVE YOUR NEW SUV, LIVE IN A NICER HOUSE, VACTION, AND STILL PLEAD POOR MOUTH ALL THE TIME….

  14. NJ is still offering State Police recruits retirements after 20 years; even reckless states like California and Illinois stopped doing that years ago since people are living longer.

  15. I solved my own New Jersey pension problem by voting with my feet and moved out of this bankrupt state. Why should my hard earned money help support everything is free government.

  16. NJ is already losing many people "of means" every year. It's only going to get worse. All that will be left are the "takers." And the pension funds will run out of money. To those who relied solely on those pensions and Social Security and thus did not save on their own for Retirement…TOUGH! We live with the Decisions we make.

  17. As a 20 year retired state employee, I’ve received all the money I’ve contributed in just 5 1/2 years! So, get to work and keep paying into the pension, I’ve got bills to pay.

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