Corzine to address NJ pension costs

One of New Jersey Governor Jon Corzine's first orders of business will be to address rising costs in the state pension system. Gannett reports that measures include a renegotiation of contracts with one of the state's largest public employee unions.

State and local governments face a $12 billion pension deficit. And the state's full payments for teacher and public worker retirement funds are expected to increase to $1.8 billion in Corzine's first budget. The state is spending just $299 million from its general fund for pensions in the current budget. Employee benefits are expected to cost taxpayers $6.9 billion in the 2010 budget, more than 21 percent of all state spending, according to the task force.

State government and public workers should share the pain of correcting a long-simmering problem, Murphy said.

But the plans proposed by the task force could strain an already tight state budget. Increased spending to close the deficit could force lawmakers to choose between higher taxes or cutting state programs. Other proposals to trim costs face opposition from public employee unions, which have aggressively fought cuts in benefits.

At a recent news conference, union leaders blasted a plan that would save the state money but cost retirees more for prescription drugs. Rae Roeder, president of Communications Workers of America Local 1033, was asked what concession the union would be willing to make to cut costs.

"We've already made our concession," Roeder said. "We work and do the job for less pay than private industry. That's the concession we made when we came to work for the state of New Jersey."