State – Page 26 – Hank Kalet

The news gets worse

New Jersey’ pension system — through no fault of the state’s employees — is in complete disarray. Thanks to the efforts of several gubernatorial administrations (of both parties) and a compliant state Legislature (run at times by both parties), there is not likely to be enough cash in the system to pay off the workers who eventually might like to retire.

And, according to The New York Times, things maybe worse than we think.

In 2005, New Jersey put either $551 million, $56 million or nothing into its pension fund for teachers. All three figures appeared in various state documents — though the state now says that the actual amount was zero.

The phantom contribution is just one indication that New Jersey has been diverting billions of dollars from its pension fund for state and local workers into other government purposes over the last 15 years, using a variety of unorthodox transactions authorized by the Legislature and by governors from both political parties.

The state has long acknowledged that it has been putting less money into the pension fund than it should. But an analysis of its records by The New York Times shows that in many cases, New Jersey has overstated even what it has claimed to be contributing, sometimes by hundreds of millions of dollars.

The discrepancies raise questions about how much money is really in the New Jersey pension fund, which industry statistics show to be the ninth largest in the nation’s public sector, with reported assets of $79 billion.

State officials say the fund is in dire shape, with a serious deficit. It has enough to pay retirees for several years, but without big contributions, paid for by cuts elsewhere in the state’s programs, higher taxes or another source, the fund could soon be caught in a downward spiral that could devastate the state’s fiscal health. Under its Constitution, New Jersey cannot reduce earned pension benefits.

This is a disaster with longterm implications for the state. We have an ethical obligation to replenish the fund as quickly as we can — but this will mean increasing taxes, dwindling services and a broken economy to follow.

South Brunswick Post, The Cranbury Press
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Endorsements are piling up

Assemblywoman Linda Greenstein may be running out of time.

Another group has come out for Assemblyman Bill Baroni in his campaign to replace state Sen. Peter Inverso, who is retiring from his senate perch this year.

Baroni snatched several major labor endorsements from state public employee unions and laborers. Today, it won the endorsement of a South Brunswick union, according to Politics NJ.

PBA Local 1066, which represents police officers in South Brunswick, has endorsed Bill Baroni for State Senate. “We work hard at protecting our communities and Bill works hard at protecting our future from corruption and abuse”, said PBA Delegate James Ryan. “Bill has been one of New Jersey’s hardest working legislators and we have maintained an open dialogue since his election to the Assembly.”

Greenstein had an uphill climb to begin with against Baroni and as the endorsements mount that climb becomes even more steep.

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On a related note, some readers of the paper the last few weeks may have noticed that we have spent time covering the legislative races. That represents a change — one our readers seemed interested in. We will be covering the race this year by focusing on those issues that have a direct and indirect impact on Cranbury, Jamesburg, Monroe and South Brunswick.

And we plan to endorse.

The Dayton papers — the South Brunswick Post and The Cranbury Press — cover towns with a total population of about 80,000, meaning we represent about 40 percent of the district. Add the two Packet towns — Plainsboro and West Windsor — and we have a majority.

I’ll pass along more lateras we develop our coverage guidelines.

South Brunswick Post, The Cranbury Press
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Governor should keep the pressure on

The Record pats the governor on the back today in an editorial — and with good reason. The governor has held off on signing the 20 percent tax credit into law as a “way of pressuring reluctant lawmakers into following through on substantive change.”

Lawmakers, of course, have been rather timid in their commitment to reform — “particularly in regard to dual office holding.”

But Corzine should continue to pressure lawmakers to make the ban on dual office holding complete. No grandfathering. The governor has the bully pulpit, and he should use it to get the public’s attention.

Almost 80 percent of New Jersey voters agree with Corzine. In a recent poll, they said state lawmakers should not be allowed to have another government job of any kind, elected or otherwise.

The governor’s vision of real change in New Jersey also includes pension and health care benefit reforms for all elected and appointed officials, not just public employees. It includes more transparency in political campaign contributions at all levels of government. Corzine wants to end pay-to-play and eliminate “wheeling,” the practice that both Democrats and Republicans use to evade campaign contribution limits by moving money from one part of the state to the other in general elections.

This is a vision that threatens the very heart of the state’s political power structure. But it’s what true reform is all about.

Let’s hope his pressure works and we get more than the lukewarm reforms currently being served.

South Brunswick Post, The Cranbury Press
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Baroni’s statement

Sen. Peter Inverso has just made it official. He is stepping down. He also announced that he is endorsing Bill Baroni for his seat.

Public service is a privilege and an honor carrying with it the commitment to put the public interest before self-interest. I have always let that guide me in fulfilling my legislative responsibilities. I am immensely grateful that the people of my district have placed thier trust and confidence in me and permitted me to represent and serve them in the state Legislature for nearly 16 years. This was not an easy decision for me to make, The increasing demands of leading an outstanding community bank with public ownership into an exciting period of expansion and opportunity, and my desire to devote more time to my wonderful wife and growing family have converged and convinced me that, after nearly a quarter of a century of public service, this is the right decision for my family, my employer and me.

Here is the full statement from Assemblyman Bill Baroni:

I am saddened by Senator Peter Inverso’s retirement. I’ve known Pete Inverso since I was 3 years old, and he continues to serve as my mentor in politics. Senator Inverso leaves behind a legacy of honesty, ethics, good government, and independence. I am ready to continue Senator Inverso’s legacy.

So there you have it.

South Brunswick Post, The Cranbury Press
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Inverso out

Voters in South Brunswick, Cranbury, Jamesburg and Monroe will have a new face representing them in the state Senate this year. Sen. Peter Inverso, a Republican, is expected to announce today that he will not seek re-election to a sixth term, making him the 12th senator to announce his retirement.

Politics NJ is speculating that Assemblyman Bill Baroni, a Republican, will run in his stead, though the two-term Assemblyman just announced his reelection plans last week.

Assemblyman Bill Baroni is expected to seek the GOP nomination for State Senate. Senate Republicans say that Inverso will endorse Baroni for his seat.

On Saturday, Mercer County Democrats endorsed Seema Singh, the state Ratepayer Advocate, as their candidate for Senate. Baroni vs. Singh offers a contest between Baroni’s base in blue collar Hamilton and Singh’s appeal to a growing block of Asian American voters in the 14th district.

Ms. Singh, who lives in South Brunswick had been slated to be the state’s public advocate by former Gov. Jim McGreevey, but the McGreevey administration failed to reinstate the position.

As for Mr. Baroni, he told Gannett:

“I intend to carry on his legacy,” said Baroni.

We’ll see where this goes. More later.

South Brunswick Post, The Cranbury Press
The Blog of South Brunswick
The Cranbury Press Blog

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