WNYC: NJ's $253 Billion Time Bomb

From Mark Lagerkvist
Oct 10, 2017

HOW WILL NEXT NJ GOVERNOR HANDLE A FISCAL TIME BOMB?

New Jersey's public pension system faces a $253 billion crisis that could result in higher taxes for residents, fewer services or even bankruptcy for state government.

WNYC analyzed data the state reported under national accounting standards. Those numbers show New Jersey's public pension system is actually underfunded by $168 billion. And that does not include an additional $85 billion shortfall for the medical benefits of retirees.

Gov. Chris Christie will hand that fiscal time bomb to a new chief executive that voters elect in November – either Democrat Phil Murphy or Republican Lt. Gov. Kim Guadagno. Neither candidate has offered a plan on how they'll find enough money to avoid a financial meltdown.

While Guadagno promises pension reform, she was at the center of a controversy that led to a pension fraud investigation. The findings of that state criminal probe have never been released. The WNYC report examines the details of that case.

The full report by investigative journalist Mark Lagerkvist – complete with links to key documents – is now online at http://www.wnyc.org/story/ticking-time-bomb-faced-next-nj-governor/.