Fiscal Insanity Continues in New Jersey

One of the reasons that New Jersey and many other states are in deep fiscal straits is because they engaged in debt financing and delayed payments on their obligations. Now, Gov. Jon Corzine is suggesting that localities delay pension payments to avoid massive property tax increases.

Saying it would "dramatically reduce the pressure on property taxes" during a bleak economy, Gov. Jon Corzine today offered county and local governments a half-billion-dollar break on their required payments into the state pension system.

Local governments would be able to defer half of the amount they were scheduled to pay in April, gradually returning to 100 percent contributions by 2012, according to a plan announced at the state League of Municipalities Convention in Atlantic City today. The proposal, which would require approval by the Legislature, drew applause from the assembled local officials during Corzine's speech.

"As much as I prefer another course, I proposed this deferral simply as a practical bridge over today's economic circumstances while reflecting the state's reduced fiscal capacity for direct aid," Corzine said. "Taxpayers deserve the help. And they are demanding it."

How exactly is this helping anyone? Robbing Peter to pay Paul doesn't begin to cut it here. There is absolutely no fiscal accountability and Gov. Corzine is busy playing a shell game with state finances.

The end result of this "plan" would be to continue underfunding state pensions and further exacerbate the problems going forward. Of course, everyone in attendance raised their hands since they get a "get out of jail free card" courtesy of Corzine.