Pension payout KOs Christie tax-cut plan

A mandatory pension payment forced Gov. Chris Christie Tuesday to propose the biggest budget in New Jersey history, a $34.4 billion spending plan that does not include a onceballyhooed tax cut.

The budget also includes no tax increases, which would be a likely death knell for a Republican with presidential ambitions.

“Now, there will be some that would advocate that the answer is to raise taxes,” Christie said in a State House speech to legislators in Trenton.

“Not only is this an unfair solution, it isn’t a solution at all. We just can’t raise taxes enough to pay for the exploding costs of publicemployee pensions and benefits.”

Christie sounded the alarm about the need to address the burden of statefunded benefits even as he proposed the $2.25 billion pension payment — which is $150 million lower than the figure he agreed to in 2011 after tough negotiations with Democrats. The pension payment was slated to be $2.4 billion under a law that required the state’s obligation to increase annually for seven years as a giveback to state workers, who would pay more into their benefits.

Christie peppered his speech with warnings about “tough choices” and a “looming crisis” unless the state made further changes to its system of retirement benefits for public workers.

“Across the country, we are sacrificing university research, support for K12 education, funding for the environment and energy and infrastructure of all kinds on the altar of these three things: pensions, health costs and debt,” said Christie, who is still under fire for his administration’s role in the George Washington Bridge laneclosure scandal.

“Due to these exploding entitlement costs, we are failing our taxpayers when we refuse to honestly address these problems and try to fool them into believing that choices do not need to be made. We are better than that. New Jersey is clearly better than that.”

The toughtalking Christie made a strong connection between rising retiree costs and the state’s inability to adequately fund other priorities such as education, tax relief and drug rehabilitation.

The state’s retirement age was also raised to 65 from 62.

In his State of the State speech in January, Christie proposed a longer school day and longer school year, but did not say how he intends to fund them. The budget proposal all but abandons his oncetouted tax cut, as well as earlier administration efforts to privatize certain services.

The spending plan does, however, maintain propertytax rebates at current levels for those who are elderly, disabled or earn less than $75,000 a year.

If approved by the legislature, the budget would go into effect July 1. Christie will start selling it at a town hall meeting Wednesday in Morris County.

“Today, I present to you a budget that is balanced, and, for the fifth year in a row, that requires no new taxes on the people of New Jersey,” Christie proclaimed. “The budget enables us to provide vital support for programs that help our citizens when they need it most.”

The budget speech comes as the Republican’s administration is mired in scandals that have hobbled the start of his second term and threaten his future political plans.

After emails surfaced linking key staffers to the politicalpayback scheme to close bridge lanes in Fort Lee and create traffic nightmares, Christie aides were accused of withholding Hurricane Sandy relief funds to get a town mayor on board with a development project.

The administration has denied the storm aid charges and Christie has said he had nothing to do with the planning or execution of the lane closings.