TRENTON, N.J. (CBSNewYork/AP) — New Jersey Gov. Chris Christie on Tuesday proposed a massive restructuring of the public employees’ pension system as he presented a budget proposal for the upcoming fiscal year that does not respond to a judge’s ruling calling on the state to put an additional $1.57 billion into the system in the current fiscal year.
The $33.8 billion state budget for the fiscal year that starts July 1 includes no tax increases and flat spending for key items such as aid to schools. And it proposes paying $1.3 billion into the pension system next year — a number that while historic, is far less than the $3 billion the state is on the hook for, per a 2011 agreement to which the judge said Monday had to be adhered.
Christie, a Republican who is considering a 2016 presidential run, is appealing that ruling. If he does not prevail, it would mean major cuts to the budget.