Dangerous Pension Bill Moving Through Trenton

My expectation is that Christie will veto this, but if this passes it's going to be a disaster.

http://www.njspotlight.com/stories/17/03/20/opinion-heads-they-win-tails-you-lose/

https://burypensions.wordpress.com/2017/03/16/nj-police-and-firemen-splitting/

Wow, that's scary. Giving the unions control over their pensions while taxpayers assume all the risk.

FYI, the bill passed the Assembly.

I was pleasantly surprised to see that John Wisniewski voted against it, saying "Voted NO on breaking up pensions. Our pension system is in crisis — this bill will cost NJ more money & leaves taxpayers holding the bag."

Will post more of the rollcall once I find it.

https://twitter.com/JohnWisniewski/status/845038141014753280

This is important stuff. Unfortunately Mr tweet is getting everbodys attention

solving the pension problem will be a bit of a pickle, but the country as a whole can afford it. Question is whether we'll have grownups to deal with it when the real crunch time comes.

That doesn't look hopeful.

Preventive maintenance is as important for pension systems as it is for infrastructure. Unfortunately, lack of same has resulted in both being in crisis.

I found the roll call.

The Assembly vote was Yes {60} No {4} Not Voting {5} Abstains {11}.

John Bramnick, John Wisniewski, Declan O'Scanlon, and John DiMaio were the only Assembly members to vote no.

I don't need to tell you that Jasey, McKeon, and Codey voted for this.

Jack Ciattarelli, who is running for governor, missed the vote, which is tantamount to a no (I'm 100% sure that Ciattarelli would oppose this proposal.)

The Senate confirmed the bill 37-0, with three not voting. I'm shocked that Mike Doherty and other conservatives voted for this.

If the vote margins held the legislature would be able to override Christie's veto, but in the past Republican legislators have switched their votes to prevent an override.  

Moody's dropped New Jersey's general obligation bonds to A3 from A2 today, citing NJ's pension woes. This is the second downgrade in four months. In November, S&P downgraded NJ GO's one notch to A-minus. Illinois is the only state with a credit rating lower than NJ. NJ GO's and obligation bonds are trading below investment-grade. This means that when NJ or say one of the state schools has to raise money in the capital market, it costs more.