By: Jason Tran
The New Jersey Supreme Court ruled this week that Governor Chris Christie of New Jersey and his administration did not unlawfully cut state pension funds.
In 2014, Governor Chris Christie announced he would make partial payments due to an financial shortcomings. The partial amount is less than half of what is required by law. His actions catalyzed uproar and lawsuits from unions. A lower court New Jersey judge ruled that the governor violated state law, forcing him to restore the pension payment of $1.57 billion fully.
With the new court ruling, Governor Chris Christie does not have to invoke major changes–higher taxes, employee layoff, or other revenue savers–to acquire the missing sum that was cut. The state budget can now weave a new budget disregarding the missing pension payments.
Public union employees and retirees expressed deep disappointment, protesting before and after the ruling. New Jersey’s pension system is already facing funding issues, with a deficit of around $37 billion.
Governor Chris Christie publicly called “interested parties” to work together with him to find a long term solution to the pension deficit.
As Governor Chris Christie contemplates whether to join the 2016 Presidential bid, the New Jersey Supreme Court ruling removes a detrimental political setback, clearing the way for the governor.