The Star-Ledger’s Samantha Marcus does some excellent work this morning in an article on New Jersey’s exploding pension costs. Marcus rightly points out that due to the ramp up to full funding (this year’s $3.8 billion payment is only 70% of the full payment), New Jersey will have to pay $6.6 billion in FY2023. That’s a 74% increase, or $2.8 billion, three short years from now.
Where is the state going to get an extra $2.8 billion? Still higher taxes on our already over-taxed citizens? How many more of them will then leave the state for lower-tax states?
Meanwhile, Governor Murphy, beholden to the NJEA and thus unwilling to consider restructuring benefits in order to put them on sounder footing and reduce their cost to taxpayers, whistles past the graveyard. At least Ms. Marcus is sounding the warning.
Read the full Star-Ledger piece here.