We have a crisis on our hands in New Jersey! Liberal politicians like Governor Phil Murphy over-promise, under-deliver then tax us more and borrow money to pay their bills. Politicians for decades have promised gold-plated pensions and healthcare we cannot afford. Then to add insult to injury, they do not fund the pension program creating a future crisis for our children. We should not be borrowing from future generations to pay for the promises politicians make that they cannot, or never planned to keep.
If you look at future revenue growth and projected future state spending, New Jersey will face an almost $4 billion budget shortfall in the next few years — driven mostly by pension and health costs.
Pension and health benefits are the fastest-growing items in the state budget. They are now 19 percent of all spending and in just a few short years will increase to 26%. While Trenton politicians are funding their pet projects, this will lead to less to spending on roads, bridges, police, and state support for OUR schools.
Here is a hard truth.
Our pension costs are a ticking time bomb that may someday force New Jersey to declare bankruptcy. We cannot tax our way out of it. We cannot spend our way out of it because we already have one of the highest state and local tax burdens in the country.
We must switch future employees from defined-benefit to defined-contribution pension plans (such as 401[k]s). Plans of this type became the norm in the private sector and the federal government long ago.
Health care costs are skyrocketing. We have the most generous government health care system in the country. We either switch state employees from platinum coverage to gold coverage, or ask that they pay a greater percentage to have platinum coverage option.