TRENTON, N.J. — It’s no secret that New Jersey’s pension system is in terrible shape, Save Jerseyans, but new studies continue to confirm the extent of the problem.
Last week, an Illinois policy group called Wirepoints released its analysis of state pension liabilities in relation to each states’ respective gross domestic product (GDP) as well as each funds’ respective assets.
You can click here to read the full report.
To the surprise of no one, New Jersey remains in one of the most precarious positions of all U.S. states with pension benefits growing 4.3-times faster than the Garden State’s GDP. With a pension liability that exploded by 176% between 2003 and 2016 alone, even additional pension payments in past years would likely have proven insufficient to avoid the present crisis.
Will Phil Murphy’s tax hikes help?
The analysts concluded that New Jersey the state would need to spend billions beyond what it already is spending on pensions to keep up. This assessment coincides with survey results form the New Jersey Society of Certified Public Accountants; over 75% of 921 CPA’s surveyed believed Phil Murphy’s budget would harm the state economy.