Sweeney Speaks To ‘Fiscal Imperative’ For Reforms

Senate President Stresses Need To Make Structural Changes To Enable Investments In State Priorities

Trenton – Speaking at a public policy forum today, Senate President Steve Sweeney continued his advocacy for the fiscal and economic reforms needed to avert future financial crises and to enable the types of investments needed to move New Jersey forward and address the state’s priorities. Participating in the New Jersey Economic Leadership Forum hosted by the New Jersey Bankers Association, Senator Sweeney promoted the recommendations of the Economic and Fiscal Policy Workgroup as a “fiscal imperative.”

“The Workgroup has provided us with various proposed reforms and recommendations that would make New Jersey’s economy healthy and competitive again while also providing a more efficient government,” said Senator Sweeney (D-Gloucester/Salem/Cumberland).  “The taxpayers deserve to have their government operating in an efficient and effective manner which is achievable by implementing the recommendations proposed in the Path to Progress report.”

The findings of the blue ribbon panel were used for the “Path to Progress” report as a working blueprint to achieve the operational and structural reforms needed to restore financial stability and affordability. Absent structural reforms, the state’s ability to invest in the things needed to meet the public’s priorities and foster economic growth will be choked off, Senator Sweeney said.

“Our bipartisan Workgroup of fiscal policy experts found we are facing a $3.2 billion budget gap for the Fiscal Year 2023 budget just to meet our pension and healthcare costs and allow for normal 3 percent annual revenue growth and a normal 3 percent increase in the cost of services,” said Senator Sweeney.  “This will rob us of the resources we need to fully fund our schools – or lower college tuition costs – or take over Special Education costs – or fix NJ Transit – or lower the high cost of college.”

The discussion included proposals to address soaring pension and benefit costs, make government and school districts more efficient, assess the efficiency of our tax structure and leverage state assets. The forum offered the opportunity for those hearing the recommendations to provide input, which is one of the primary goals of the meetings Senator Sweeney and other members of the study group have had with groups across the state.

Senator Sweeney also told the business leaders that the new hybrid pension system recommended by the Workgroup would fully preserve the existing pension system for teachers and state, county and municipal employees with five years of service. He also explained how state and local governments could save over $1.2 billion for taxpayers by shifting from the state’s current “Platinum-Plus-Plus” system to a Gold-level health care plan comparable to those offered by New Jersey’s largest private sector companies to their employees.

The Economic and Fiscal Policy Workgroup held its initial organizational meeting on January 30, 2018. Over the course of six months, the Workgroup held meetings that included presentations by policy experts on critical issues and discussions of the pros and cons of potential solutions. The Workgroup issued its report and recommendations on August 9, 2018.

Following the issuance of the report, Senator Sweeney has been holding roundtable discussions and meeting with county and municipal officials and a wide range of organizations throughout the state.