New Jersey Gov. Chris Christie on Friday used a line-item veto to reduce the amount of money approved by the Legislature for a state payment to the $79.2 billion New Jersey Pension Fund, Trenton, for the fiscal year starting July 1.
On Thursday, the Legislature approved a budget with $3.1 billion scheduled for the pension system. The budget contained tax increases on wealthy individuals and businesses to help pay for the higher pension contribution.
On Friday, Mr. Christie used the line-item veto to eliminate the extra taxes and the higher pension payment, choosing instead to make a pension payment of $1.3 billion — the same number as when he unveiled his budget proposal in February.
Also, because of higher than expected revenues is the waning months of the current fiscal year, Mr. Christie has added $212 million to the state pension payment for the year ending June 30. Those funds bring to $893 million the pension payment for the current fiscal year, still well below the $2.25 billion the Legislature had sought.