As reported by Bloomberg News, Governor Chris Christie recently broke a pledge to bolster New Jersey’s underfunded public-employee pension system. As described,
Under a law Christie signed in 2010, New Jersey was to make higher pension payments each year through fiscal 2018 to help make up for a decade of skipped contributions. Christie said this month that the extra contributions won’t happen this year or next after his revenue targets fell short by $2.75 billion.
In Maryland, Governor O’Malley’s budget reduced additional money set aside to pay down the pension system’s unfunded liabilities from $300 million to $200 million to support the general fund this legislative session. For more information, see our Conduit Street article, Governor’s Budget Repeats Cut in Pension Funding.