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TagsGovernor holding string of town hall meetings to promote agenda
As Democratic legislators Tuesday attempted to continue to place Gov. Chris Christie in the center of the bad news about New Jersey failing to gain $400 million in federal education aid, the governor launched what aides are describing as a campaign to gain public support for his agenda to rebuild the state.
Christie launched the effort at a town hall meeting in Wayne declaring the Democratic-controlled Legislature needs to act within the next 107 days before it concludes its fall calendar on Dec. 20.
Christie's remarks touched on what he sees as early successes of his 7-months-old administration in bringing about bipartisan solutions to the critical challenges faced by the state, including closing an $11 billion budget deficit, passing a 2 percent cap on annual property tax hikes, and the first steps toward pension and benefit reform.
The governor called on the Legislature to act on his proposals, including the pending "took kit" legislation to give local governments the ways to control costs and limit property taxes. The Democrats have identified September as the end of their timetable for considering the critical bills and their own versions.
"When I became governor, I made a promise to the people of New Jersey that I would use every power and authority of this office and every ounce of my energy to make their lives better, bring accountability and responsibility to their government and give them hope for a better future in our State," Christie said. "We have made great progress since January, but we can and must go further to fix our state. Today marks the next stage of our efforts to bring reform for a stronger New Jersey."At the meeting in Wayne, Christie discussed the problems he sees as confronting New Jersey and the past failure of both parties to provide the long-term solutions.
Assemblyman John Wisniewski (D-Middlesex), chairman of the state Democratic Party, described Christie's plan for a series of town hall meetings, "the latest attempt to divert attention away from the $400 million blunder.
"Governor Christie has renewed his talk about reforming government,'' Wisniewski said. "But if he's serious about enacting true reform, he should start with his own administration and close associates.''
Wisniewski offered what he described as numerous examples of Christie ignoring ethical issues:
"Christie's secretive slush fund Reform Jersey Now, run by his close associates, has openly flaunted the fact that they are not subject to state pay to play laws and are raising money directly with Christie as the featured speaker.
"Christie promised transparency and openness, but still has not released his complete tax returns, only a summary.
"Christie talks about reigning in boards and commissions, but then Jerry Speziale received a job as a quid pro quo for not seeking re-election to his position as Passaic County sheriff.
"While a candidate, Christie spoke against dual office to a media outlet while driving to a fundraiser for dual officeholder Carl Block.
"Once elected, Christie attended the swearing-in of Morris Freeholder William Chegwidden in January, who is also the mayor of Wharton.
"Now as governor, Christie has remained silent as his close friend; Brick Mayor Stephen Acropolis has taken a second public job as the director of the Toms River Municipal Utilities Authority.
"Christie has not answered concerns raised by both Republicans and Democrats about his administration's takeover of the investigation of (Hunterdon County Sheriff) Deborah Trout and the subsequent dismissal of all 43 charges, especially given the fact that co-defendant and Christie contributor Michael Russo is reported to have publicly claimed that Christie would ‘step in (and) have this whole thing thrown out.' Oddly enough, that's exactly what happened.
"The people of New Jersey deserve more than words from their governor as he tries to divert attention from his administration's latest misstep," Wisniewski said. "If Christie is serious about reform, he should start with the actions of himself and his administration by holding his friends to the same standards he seeks to impose on everyone else."
Christie's agenda calls for solutions to some of the most pressing issues facing New Jersey, including ethics, pension and benefits, economic development and education.
Coinciding with the meeting, the governor's office launched a web site to present the Christie's agenda: www.nj.gov/governor/reformagenda, and released a new web-video, "The Clock Starts Now," on the governor's YouTube site.
Christie will discuss his agenda Tuesday at 10:30 a.m. at a meeting at the Raritan Township municipal building.
Here is the governor's agenda as described by his office:
An Unreformed Pension System On The Brink Of Insolvency...
New Jersey's Pension Systems Are Underfunded By $46 Billion.
- By 2026 the unfunded liability is projected to rise to $85B with a funding ratio of only 41%, even if all required employer pension contributions are made.
- If the state had contributed every dollar it was supposed to over the last ten years, our pensions would be funded at 74%, instead of 64 %, only a 10 % difference.
According To Private Sector Methodology.
- New Jersey's unfunded benefit obligation rises to $173.9 billion (assuming 3.5% discount rate instead of the current 8.25%).
- This amount is equivalent to 44 percent of the state's current GDP and 328 percent of its current explicit government debt.
Pension Reform Is Taking Hold Around The Country.
Many states are reducing pension liabilities by lowering or eliminating cost of living adjustments (COLA), or eliminating COLAs for current and future employees. Colorado reduced its 2010 COLA from 3.5% to 0% with a rate of 2% starting in FY2011. Minnesota reduced COLAs from 2.5% to 1-2% depending on the fund, and South Dakota made a 1% reduction in 2010 with future years COLAs based on investment performance.
Nearly 75 Percent, Or 3 Of Every 4 Dollars, Of Every Municipal Or County Budget Is Driven By Personnel And Labor Costs. This Includes The Cost Of Pension And Benefits.
Trenton Politicians Have Consistently Expanded Pension Benefits Without Paying For Them ...
- Most notably, in 2001 several bills were passed that increased benefits for current and retired employees by 9.12 percent with no increase in employee payroll contributions (Chapter 133, P.L. 2001, S 2450, http://www.state.nj.us/treasury/pensions/pdf/laws/c133pl01.pdf.)
An Out-Of-Proportion Benefits System In New Jersey Is Costing Taxpayers and Needs Reform...
New Jersey Spends Approx. $2.5 Billion Annually On Health Benefit Costs for Public Employees and Retirees.
The Unfunded Liability For Health Benefits Is Even Greater Than The Unfunded Liability For Pensions
- $67 Billion unfunded liability for health benefit costs for active and retired state and local public employees.
New Jersey Pays A Higher Percentage Of Its Employees Healthcare Costs Than Private Sector Employers and Public Sector Employers, including Delaware, New York, and The Federal Government.
- New Jersey, 92%; Delaware, 91%; New York, 83%; Federal Government, 66%.
New Jersey Offers Only 3 Health Plans to Employees, vs. 269 Offered To Federal Employees.
The Overwhelming Majority of New Jersey Employees Contribute Only 1.5% of their Salary for Health Benefits, Regardless of Benefit Plan Or Family Status.
New Jersey Has Lower Prescription Drug Copays Than Delaware, New York And Pennsylvania.
New Jersey's Primary Care Copay Is 40% Lower Than The National Average.
- New Jersey, $15; National PPO Average Copay, $21.
- 70% of PPO's had Copays of $20 or More.
Nearly 75 Percent, Or 3 Of Every 4 Dollars, Of Every Municipal Or County Budget Is Driven By Personnel And Labor Costs. This Includes The Cost Of Pension And Benefits.
A Business And Economic Climate That Has Driven Away Jobs And Businesses...
New Jersey's Economy Is Still Reeling From The Economic Recession.
- In July 2010 New Jersey's Unemployment Rate of 9.7% remained higher than PA & NY.
- Pennsylvania's unemployment rate in July 2010 was 9.3% and New York's unemployment rate in July 2010 was 8.2%.
- The national unemployment rate was 9.5% in July 2010
- From June 2006 to June 2010, New Jersey lost 215,000 private sector jobs.
The Foreclosure Crisis Continues To Devastate Our State's Families And Weaken Our Economic Recovery.
- New Jersey foreclosure filings increased 199.8% from 2006 to 2010.
- New Jersey foreclosure filings in 2006 were 21,752, compared to 65,222 in 2010.
New Jersey Is Especially Hostile to Small Businesses, Ranking 50th In SBE's Business Tax Index in 2010 and Small Business Survival Index In 2009.
- New Jersey's Business Tax Index rating by the Small Business & Entrepreneurship Council for 2010 was the worst of all 50 states, and only surpassed by the District of Columbia. (Small Business and Entrepreneurship Council, April 2010)
- New Jersey's "Small Business Survival" Index rating by the Small Business & Entrepreneurship Council is the worst of all 50 states, and only surpassed by the District of Columbia in hostility to small businesses. (SBEC, December 2009)
- New Jersey remains at a regional disadvantage when it comes to business taxation. In the same Business Tax Index, Pennsylvania ranked 26th; Delaware ranked 30th; and New York ranked 47th. (Small Business Entrepreneurship Council, April 2010)
A Study By Boston College's Center On Wealth And Philanthropy Showed That From 2004 Through 2008, $70 Billion In Wealth Left New Jersey.
Further, New Jersey's Top Marginal Personal Income Tax Rate In 2009 Was 10.75%, Compared To 3.07% In PA and 8.97% In NY.
- According to SBEC, 90% of businesses file taxes as individuals and are subject to personal income tax rates. (Small Business Entrepreneurship Council, April 2010)
- New Jersey's top marginal personal income tax rate dropped to 8.97% in 2010 as a result of Governor Christie's veto of legislation to extend the 10.75% top tax rate.
Businesses Continue To Fail In New Jersey's Unfriendly Business Climate.
- New Jersey business filings decreased 11% from 2007 to 2010.
- New Jersey business filings in 2007 were 88,698, compared to 78,605 in 2010.
A Costly Education System In Need Of Greater Reform...
Including Federal Aid, New Jersey State And Local Governments Spent Approx. $25 Billion On Education For 2009-2010. (NJDOE)
- Total State Aid to Education was $10.3 Billion for 2010-2011, including FICA, retiree health care, and other expenses borne by the State.
Statewide Per Pupil Spending Is The Highest In The Nation At $17,620.
- According to the National Center for Education Statistics, New Jersey spent $17,620 per pupil for 2007-2008, the latest available data.
New Jersey Paid The 4th Highest Teacher Salaries In The Nation For '08-'09, 17% Higher Than The National Average.
- The average full-time teacher salary in New Jersey was $63,051 for 2008-2009.
- The National Estimated Average Teachers Salary was $53,910 for 2008-2009.
- The Average Teacher Salary Increased 5.9% From '07-'08 To '09-'10.
- The average full-time teacher salary in New Jersey for 2007-2008 was $61,478.
- The average full-time teacher salary in New Jersey for 2009-2010 was $65,123.
(Sources: NJDOE, NCED)
Despite Consistently High Education Spending, New Jersey's Achievement Gap Persists...
The Gap In New Jersey 4th Grade Math Between At-Risk Students And Those Not At Risk Did Not Change Significantly In 13 Years.
- In 2009, students eligible for free/reduced-price lunch (indicator of poverty) had an average score 26 points lower than students not eligible for free/reduced-price lunch. The performance gap was not significantly different from that in 1996 (32 points). (National Assessment of Educational Progress, 2009)
- The gap between black or Hispanic and white students for the same test in 2009 narrowed when compared to the gap in 1992. (NAEP, 2009)
The Gap In New Jersey 8th Grade Math Between Black Or Hispanic And White Students Did Not Change Significantly In 19 Years (More Than A Generation Of Students Or Nearly The Lifetime Of Abbott).
- In 2009, the average score of black students was 34 points lower than that of white students. The gap was not significantly different from 1990 (38 points).
- In 2009, the average score of Hispanic students was 30 points lower than that of white students. The gap was not significantly different from 1990 (37 points).
- The gap in New Jersey eighth grade math between at-risk students and those not at risk did not change significantly in six years.
- In 2009, students eligible for free/reduced-price lunch (indicator of poverty) had an average score 30 points lower than students not eligible for free/reduced-price lunch. The performance gap was not significantly different from that in 2003 (34 points).
The Gap In New Jersey 4th Grade Reading Between At-Risk Students And Those Not At Risk Did Not Change Significantly In Six Years.
- In 2009, students eligible for free/reduced-price lunch (indicator of poverty) had an average score 26 points lower than students not eligible for free/reduced-price lunch. The performance gap was not significantly different from that in 2003 (30 points).
The Gap In New Jersey 8th Grade Reading Between Black Or Hispanic And White Students Did Not Change Significantly In Six Years. The Gap Between At-Risk Students And Those Not At Risk Also Did Not Change Significantly Over The Same Time Period.
- In 2009, the average score of black students was 31 points lower than that of white students. The gap was not significantly different from 2003 (29 points).
- In 2009, the average score of Hispanic students was 25 points lower than that of white students. The gap was not significantly different from 2003 (28 points).
- In 2009, students eligible for free/reduced-price lunch (indicator of poverty) had an average score 27 points lower than students not eligible for free/reduced-price lunch. The performance gap was not significantly different from that in 2003 (30 points).
(Source: National Assessment of Educational Progress)
— TOM HESTER SR., NEWJERSEYNEWSROOM.COM
But your right, let's spend years debating about which states we compare figures and percentages while we completely ignoring the FACT that NJ grows more and more insolvent each day.
Step 1 - admitting the problem...
I know this is a long post, but my final point is simply this. Why provide this report, which provides only a fraction of the information that it should, and then still not tell us what you want to do about it? Ok, even if we just looked at the the parts of this report that do provide us with actual data and relevant statements. Where are the ideas to address the multitude of problems that are cited here? Even if we were to accept everything in this report at face value, what exactly is our leadership planning to do about it?
NJ spends 2.5 billion annually on health benefit costs for public workers and retirees-how is this relevant? Are we to compare this number to something? The purpose of this statement, as it stands, with no further clarification, baffles me. Unless, of course, it is merely thrown in there for shock value.
NJ pays a slighty higher percentage than DE, about 10% more than NY, and significantly higher than the fed when it comes to health care for public workers. The statement also claims that NJ pays a higher percentage than private sector employers but unlike the other examples, there are no numbers to back this up. It is very likely true, but the omission of data makes one wonder what the report is trying to hide. Is the difference not so glaring enough to be included? Also, how does NJ compare to PA since we are listing all the other surround states? Or does the report only include information that "makes its case" so to speak? PA is included later when the report wants to start talking about income tax rates, so why not here too?
"Pension Reform is Taking Hold Around the Country" says the report. It then goes on to list three states, presumably out of 50, where pension reform has occurred. if there are more states doing so, why are they not included here. Three states out of fifty is hardly an example of sweeping change.
"NJ offers only three health plans to employees vs. 369 offered to federal employees" You are comparing a state to the federal government and I believe, though I have not researched it, that there are laws governing what health plans can be offered in NJ specifically, laws which would not apply to the feds. Moreover, what is the point of this statement? Would offering more plans to these employees save NJ money? Again, bold statements with little clarification as to their relevancy.
NJ has lower prescripition drug copays than NY, PA or DE- how much lower?
The report then addresses how NJ's economy is still reeling and how many private sector jobs were lost in the past year. Were any public sector jobs lost? Do they not count? Do public sector workers not pay taxes to the state as well? Incidentally, I believe I read that our unemployment rate is now even higher, at 9.8%, largely due to a loss of public sector jobs in August 2010. If you are concerned about unemployment, and we all should be, why only tell half the story?
As to the reference of the top marginal income tax rate, let us remember that a top marginal rate is merely a rate that does not take into account deductions and exemptions. I also have a question, since I am by no means a tax expert, do these "top rates" match in terms of brackets? Is the NJ top income bracket the same as NY and PA? If not, and I will have to take the time to look it up, then these numbers mean little.
I'm still trying to find the per pupil spending on the NCES website because I'd like to see how much higher our spending is than area states, since this report chooses not to provide that data, preferring instead to merely state that we spend more than anyone. But by how much? Why is data only provided to back up some of the statements in this report and strangely enough, missing, with regard to others?
As to the study by Boston college that wealth is leaving NJ, correlation does not equal causation. A briefing of the report states that the cause for the loss of wealth was due to "changes to the state's tax structure." What changes? Is it only rising income taxes? I need more information, don't you? I suppose I would have to read the report to get the full picture.
And finally, we come to the "costly education system in need of reform". First, I will state the obvious. NJ is an expensive place to live so of course, to expect the education system to operate at bargain basement prices is ludicrous. In looking at the teacher's salaries listed here, I am not all that shocked. Do we think teachers, on average, should be making less than this? If so, by how much? This type of information, of course, is not provided here. We readers, apparently, are merely supposed to see those figures and think "too much."
What the report does do right here, is highlight how much we are giving teachers in raises. From what I am reading, it looks like teacher salaries increased approx 6% over a three year period. Is that too much? I honestly don't know; it certainly is less shocking than the 4% per year that I kept hearing about. continued below....