New Jersey debt soars from public employee pensions, benefits
- Most of the increase in nonbonded debt came from a $36.1 billion hike in state retirement benefits liabilities.
By The Center Square Staff
Updated: August 3, 2022 – 12:08am
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New Jersey’s debt obligation grew to more than $200 billion in part because the state Legislature passed a budget reflecting only the current year’s policy priorities, pension and benefit obligations before moving on to the next crisis, the director of a public policy center said.
In the state Treasury Department Fiscal Year 2021 Debt Report released July 1, state debt obligations grew from $204 million to $248 million from June 30 of 2020 to a year later.
“The overwhelming share of this debt is tied to public employee pensions and benefits. Most of it isn’t even bonded debt – it’s long-term obligations due to retirees and employees,” Micah Rasmussen told The Center Square. He’s director of the Rebovich Institute for New Jersey Politics. “So, it’s not directly tied into the state budget, except of course the state revenue we’re spending every year on servicing the debt.”
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Old Wall Street axiom: “when you are in a hole, stop digging”.
Time for pensions has long past.
Unfortunately, the unions have the politicians and bureaucrats by the throats.