New Jersey Gov. Chris Christie on Friday announced he would appoint a commission to analyze the state's system for providing pensions and health benefits, and propose reforms to “preserve reasonable and sustainable programs that do not imperil our state's financial future.”
Mr. Christie signed an executive order, saying he would appoint a non-partisan commission with at least five members — called the New Jersey Pension and Health Benefit Study Commission — to make recommendations within 30 days of starting their research. Michael Drewniak, a spokesman for the governor, said in an e-mail that Mr. Christie will appoint the members in a few days.
The governor warned of rising pension and health-care costs, adding that changes in the system — not new taxes — is the best way to address the problems. “There is no level taxation available to us that would meet these costs and not destroy our state's economy,” he said in the executive order.
Among other things, the commission will propose the “necessary, legislative and regulatory actions required to implement the proposed changes,” the executive order said.
On July 1, the governor signed a $32.5 billion state budget for the fiscal year ending June 30, 2015, using a line-item veto to cut a previously promised $2.25 billion state payment to the $80.6 billion New Jersey Pension Fund, Trenton, to $681 million.
Mr. Christie said the reduction was necessary to balance the state budget. He also vetoed taxes approved by the state Legislature that were designed to help balance the budget.
In May, the governor cut a promised state payment to the New Jersey Pension Fund for the fiscal year that ended June 30, 2014, to $696 million from $1.58 billion.