The $86 billion system that funds pensions for public workers, state troopers, local police and firefighters, and teachers lost ground in the first year public workers were required to pay more toward their retirements, according to reports released Monday.
New Jersey Gov. Chris Christie proposed a $32.9 billion budget Tuesday that allows more poor residents to enroll in Medicaid and increases public school aid but defers property tax rebates for three months.
Gov. Christie is unlikely to agree to any tax increases, but foregoing the annual payment into the state pension system is not an option, due to legal requirements.
New Jersey faces a series of increasingly urgent budget pressures, including keeping pension and health insurance promises to retirees, funding health care for the poor and repairing aging roads and bridges, said three independent experts who published a report examining the state's financial condition Thursday.
The Senate Budget Committee voted to give the state's lowest-paid hourly employees a $1.25 per hour raise on Monday, following about two hours of debate over whether a minimum wage increase would spur New Jersey's sluggish economy or kill precious jobs.
A New Jersey Senate panel narrowly passed a resolution Monday that would ask voters to approve a minimum wage increase next year along with automatic yearly adjustments.