Pension Deferral Bill Set for Monday Committee Hearing
By Jon Whiten • Jan 1st, 2010 • Category: Blog, News, Politics
A number of bills await the Assembly Appropriations Committee for when it gets back to work on Monday; among them is a bill sponsored by Jersey City Assemblywoman Joan Quigley that would allow local governments to defer payments into the state pension fund.
A similar bill passed last year allowed Jersey City to defer $14.8 million in payments and helped the city balance its $474 million Fiscal Year 2009 budget. The city’s Fiscal Year 2010 budget, which covers the time period from July 1, 2009 to June 30, 2010, is by all accounts in worse shape than last year’s, with officials having projected a shortfall of anywhere between $40 and $70 million.
The payment not made this year, if the legislation passes, would be repaid to the state over a 15-year period beginning in Fiscal Year 2013. Last year’s deferred payment will begin a 15-year repayment in Fiscal Year 2012.
Quigley’s legislation is mirrored in the state Senate by a bill introduced by Jersey City Sen. Sandra Cunningham. Both have said they put forth the bills at the behest of the Healy administration, which is hoping to avoid cutting more services or raising taxes.
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Jon Whiten is the founding editor of the Jersey City Independent; he now works for a public-policy nonprofit in Trenton.
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