Governor Chris Christie Announces Federal Disaster Aid Approved for Additional New Jersey Counties

Individual Assistance Extended to Atlantic, Cape May, Cumberland, Middlesex and Salem Counties; Individual and Public Assistance Approved for Camden, Gloucester, Hunterdon, Monmouth, Sussex and Warren Counties; Public Assistance Approved for Mercer County             

Trenton, NJ – Governor Chris Christie today announced that the federal government has approved disaster assistance for New Jerseyans impacted by Hurricane Irene in additional counties, providing direct assistance to individuals and households in the aftermath of the historic hurricane. Individuals in a total of 16 New Jersey counties are now eligible for federal disaster relief. Governor Christie previously requested assistance for all 21 New Jersey counties, but damage assessments need to be concluded before individual assistance can be granted to the remaining counties of Burlington, Hudson, Mercer, Ocean and Union.

New Jersey residents and small businesses in the following 16 counties are now eligible for Individual Assistance through the Federal Emergency Management Agency (FEMA): Atlantic, Bergen, Camden, Cape May, Cumberland, Essex, Gloucester, Hunterdon, Middlesex, Monmouth, Morris, Passaic, Salem, Somerset, Sussex, and Warren.

Eligibility allows New Jerseyans to apply for different types of assistance, including temporary housing, repair, replacement or other needs such as Disaster Unemployment Assistance, and Small Business Administration disaster loans.

 All 16 of the counties have also been approved by the federal government as eligible for public assistance, which includes federal funding. Additionally, Mercer County was also approved for public assistance. Funding also is available to state and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by Hurricane Irene. Survivors of Hurricane Irene who suffered damage should apply for disaster assistance with the Federal Emergency Management Agency – even if they have insurance or aren’t sure they are eligible. 

Residents of the five counties that have yet to be declared eligible for individual assistance by the federal government are being encouraged to begin the process of registering with FEMA for relief.

Register by phone at 800-621-FEMA (3362) or TTY 800-462-7585 for those with hearing or speech impairments. Specialists are standing by at the toll-free numbers seven days a week, 7 a.m. to 10 p.m. local time, until further notice. Help in other languages is available. Or you can register online at www.DisasterAssistance.gov.You can also apply through a web-enabled mobile device or smartphone by visiting m.fema.gov and following the link to “apply online for federal assistance.”

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Beck, O’Scanlon and Casagrande Voice Opposition To Toll Hikes

12th District Legislators Senator Jennifer Beck, Assemblyman Declan O’Scanlon and Caroline Casagrande today announced their opposition to the massive toll hikes proposed by the Port Authority.

“With so many of our own residents here in New Jersey unemployed, adding another undue burden, a 150% toll hike on working families is not the right course of action,” Beck said. “This is another battle in the fight for our State to remain an affordable place for our families. New Jersey has already lost residents who’ve left the State for more affordable places to live and another toll increase is counter-productive to New Jersey’s economic recovery.”

“Senator Beck, Assemblywoman Casagrande and I completely oppose these massive toll hikes, and we support Governors Christie and Cuomo in their efforts to derail them,” said O’Scanlon. “To nearly double the tolls and PATH fares in a time of economic difficulty makes no sense. This will be one more barrier to economic activity in the tri-state area, and a tax increase on people who already having a hard time making ends meet.”

The Port Authority is holding several hearings today at 8am and 6pm, often in difficult to reach places. Casagrande said that was not a coincidence.

“We saw the same thing for the Corzine toll hikes on the Parkway and Turnpike. They hold the hearings at a time when the very people who would be affected by this – commuters – are on their way to or from work so they can’t attend. They’re not interested in hearing or considering the public’s opinion, because if they did, their ears would be burning. This is an outrageous burden to put on people who have to drive into the city or to visit loved ones in the New York area.”

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Governor Chris Christie Launches Expanded Promise Communities Initiative to Maximize Resources and Results for Children

Trenton, NJ – Continuing his commitment to pursuing innovative approaches to ensure every New Jersey child is receiving a quality education, Governor Chris Christie today joined with Harlem Children’s Zone (HCZ) Executive Director Geoffrey Canada to announce an expanded Promise Communities initiative and partnership between HCZ and the Christie Administration. This broader initiative builds on and expands to other New Jersey communities the pilot program being developed between New Jersey Community Development Corporation (NJCDC), a nonprofit community organization in the City of Paterson, and HCZ to empower community-based organizations, to help schools advance and operate more efficiently, and to break down the “silos of government,” ensuring a more efficient and coordinated use of resources toward a common goal of positive outcomes for children. Governor Christie and Mr. Canada made their announcement at NJCDC’s Paterson facility today.

“The Harlem Children’s Zone has shown consistently the potential that can be unleashed in our children and communities when we move beyond the confines of government. In doing so, Geoffrey Canada has led HCZ to become a national model of all that can be accomplished when we put the needs of students before the old ways of doing things,” said Governor Christie. “In partnership with HCZ and the Paterson community, we are moving aggressively to recreate the success of HCZ right here in New Jersey by restructuring and organizing programs that reach across the community under a common goal – improving the lives of children and revitalizing the community.”

Through this expanded partnership, the State, through the Office of the Attorney General and Office of the Secretary of Higher Education, will provide assistance to community-based nonprofit organizations in additional cities as part of a Promise Communities initiative. Currently, Harlem Children’s Zone partners with nonprofit community organizations in Newark and Camden to provide technical assistance and guidance in coordinating existing resources among programs inside, outside and across government. The Department of Education is actively working with HCZ to identify opportunities to expand this program to other communities in New Jersey.

“Fundamentally changing the results we are getting in our country’s most distressed communities means taking a completely different approach to how we are educating and providing services to children and their families,” said Geoffrey Canada. “In New Jersey, Governor Christie has shown a serious commitment to transforming urban education in innovative ways that focus on results, not conventions or past practice. I’m pleased to expand our partnership with the Governor and his Administration, work together to identify other communities in New Jersey where transformation can take hold, and help find ways state government can use its resources to get better results for children across the state.”

Building upon core principles of the Harlem Children’s Zone, Promise Communities are designed to create a comprehensive continuum of solutions including educational programs and family and community support systems, with great schools at their center. Utilizing the participation of community partners and stakeholders, including state and local governments, local businesses, higher education institutions, among others, Promise Communities are designed to significantly improve the educational and developmental outcomes of children and youth, from birth through college and onto a career. The Promise Community model emphasizes the need for learning opportunities throughout each day, year, and over the course of a child’s life span, as part of a broader neighborhood revitalization strategy.

In addition, Governor Christie announced that the Administration, via the Office of the Secretary of Higher Education, will further its partnership with the Harlem Children’s Zone at the state government level. Geoffrey Canada and HCZ leadership will convene an Advisory Group, led by Acting Secretary for Higher Education Rochelle Hendricks, to interface directly with the Administration and provide critical analysis, guidance and recommendations to further the goals of improving inter-agency coordination, “breaking down silos” at the state government level, and increasing efficiency and accountability in policies and programs benefiting at-risk children.

Acting Secretary for Higher Education Hendricks will assume leadership for these expanded initiatives with the HCZ initiative on behalf of Governor Christie and will work closely with the Commissioners of other key agencies, including the Departments of Education, Children & Families, Labor & Workforce Development, Community Affairs and the Office of Attorney General.

Currently, New Jersey is the only state that has forged a formal partnership with Harlem Children’s Zone. An initiative is already underway in Paterson using the Harlem Children Zone’s successful model to form extensive partnerships with community organizations to rebuild communities and its schools.

Harlem Children’s Zone’s core mission is positive education outcomes for every child through effective schools and community programs, with the final result of graduation from college. The U.S. Department of Education’s highly-touted Promise Neighborhoods initiative is premised upon the HCZ model and designed to ensure that school reform and neighborhood revitalization are interconnected. HCZ utilizes an integrated approach to community renewal that focuses on comprehensive support for children from birth all the way through college.

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Governor Christie’s Record of Protecting and Supporting Children

Governor Christie’s FY2012 Budget reaffirms his commitment to children and families, building upon a proven record of helping the most vulnerable.

Despite Democrats’ political rhetoric to the contrary, Governor Christie’s FY2012 Budget builds on a record of funding critical budget priorities while protecting the most vulnerable New Jerseyans. Legislative Democrats may find it more convenient to distort the facts for election year political gain, but the numbers are clear – Governor Christie has consistently provided resources to fund services supporting the neediest New Jerseyans. 

Early Childhood Intervention Program

Funding for the Early Childhood Intervention Program increased $9.7 million over FY2011, for a total budget of $92.593 million.
o The program supports families with children from birth to age three with developmental delays and disabilities. Services include developmental intervention, speech, physical and occupational therapy and other services necessary to achieve their full potential.

21,292 children received services in FY2010.

Federally Qualified Health Centers

Funding increased $6.4 million to $46.4 million to New Jersey’s network of community health centers, which provide health care to the uninsured, underinsured and Medicaid and Medicare recipients at 100 sites across the state.
Department of Health and Senior Services funding reimburses Federally Qualified Health Centers for the care they provide to the uninsured.
Protected Reimbursement rate at $101 per uninsured visit.

Aid to Hospitals

Funding to hospitals increased by $20 million to $675 million and will be distributed under a new formula to all 72 New Jersey hospitals for the care they provide to the uninsured.
The funding formula was revised to make it more transparent, predictable and equitable for the benefit of New Jersey’s 72 hospitals.
For the first time, the formula was made available to hospitals and the Legislature in February, rather than in June or July. This increased transparency in hospital funding allows hospitals to plan more effectively.

Special Child Health Services Case Management

State and federal funding for Special Child Health Services was protected at $3.3 million.
Counties provide case management services to 12,000 medically fragile children birth through age 21 in need assistance to access comprehensive health services.
Eligible children without insurance get assistance with hearing aids, orthotics, prosthesis and pharmaceuticals to treat asthma and/or cystic fibrosis.

Autism Registry

$500,000 was preserved for the Autism Registry, which makes it easier for families to be connected to the appropriate diagnostic, treatment and support services in their communities.
More than 6,000 children have been registered and it is expected that approximately 1,200 children will be registered each year.
Once registered, families are referred to a county case manager who works with the family and helps them to access available services.

Department of Children and Families

· The FY2012 budget for the Department of Children and Families (DCF) is $1.5 billion, with state resources accounting for $1.058 billion with 70% of state dollars or $743 million allocated for adoption subsidy, foster care board payments and therapeutic and support service for children and families.

· Governor Christie yesterday announced that DCF is providing Wynona Lipman House with $537,000 in federal funds in place of the legislative line item providing state funding in the same amount, thus ensuring no interruption in services. This funding from DCF will preserve the important work of Wynona Lipman House as part of a transition plan for its ongoing operations, as DCF will work closely with the House’s Board of Directors and staff, Essex County government, and other stakeholders to develop a long-term funding model.

· $419 million in funding for the Division of Youth and Services which provides for:

o Over 13,000 youth in permanent adoptive homes;

o Approximately 7,200 youth in out-of-home placement;

o Support services for children in their own homes and in out of home placements;

o Coordinated health care planning for children in out of home placement.

· The FY2012 Budget provides continuation funding for a $100,000 increase for Court Appointed Special Advocates (CASA) approved by this administration in FY2011.

· The budget also allowed for the re-programming of existing resources for the following initiatives:

o Expanded a summer housing internship program for 30 aging out youth;

o Expanded supervised therapeutic visitation to promote better permanency outcomes.

· $265 million allocated for Division of Child Behavioral Health Services programs which provides for:

o Approximately 40,000 children in our behavioral health system of care;

o Mobile Response and Stabilization Services;

o Community Based Outpatient/Partial Care/Partial Hospitalization services;

o Behavioral Assistance and Intensive In-Home Community services;

o Community Based Residential Services;

o Re-programmed existing resources for the following initiatives:

§ Expanded residential services to support youth with co-occurring needs (Developmentally Disabled Mentally Ill);

§ Support for Youth Suicide Prevention Hotline.

· $58.8 million for Division of Prevention and Community Partnerships:

o Including funding for 37 neighborhood-based Family Success Centers that are serving more than 45,000 families;

o Early Childhood Services with home visiting programs serving approximately 4,000 families;

o Domestic Violence Prevention Services;

o School Linked Services.

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Governor Christie Affirms Commitment to Strengthening Cities With Proper Oversight and Accountability

Trenton, NJ – Continuing his commitment to strengthening New Jersey’s urban cities and distressed municipalities through oversight, guidance and accountability, Governor Christie today committed himself to signing legislation proposed by his Administration that restores Transitional Aid funding and provides permanent, necessary accountability and oversight of the program. Under the Governor’s proposal, changes would be codified in statute to provide the Department of Community Affairs (DCA) with the resources and staff needed to properly oversee the Transitional Aid program.

“When I took office, I pledged to change the culture of Trenton and end the practice of unchecked waste of taxpayer dollars. Legislative Democrats’ efforts to eliminate oversight and accountability for Transitional Aid through the Department of Community Affairs was a misguided effort that would have returned us to the days of Trenton as a free-flowing spigot for taxpayer dollars where no one asked questions,” said Governor Christie. “I stand ready to work with the leadership in the Legislature on Transitional Aid funds, but only under the oversight of a properly resourced DCA. I will sign into law the bill I am proposing today that restores funding in the Transitional Aid program and that provides the resources for DCA to continue its vital work overseeing and enforcing accountability in the program, and serving as a partner with urban cities and distressed municipalities.”

Governor Christie is calling on the Legislature to codify oversight language in statute to ensure it is a permanent, foundational aspect of the Transitional Aid to Localities program, while also restoring funding in the program. Proper levels of oversight and accountability are critical to ensuring that Transitional Aid is indeed temporary as the State government works with recipient municipalities to implement needed reforms and efficiencies. The expenditure of state taxpayer dollars in the program must go hand in hand with proper accountability of those funds. By putting this oversight in statute, oversight and accountability of the aid program will be ongoing and no longer dependent on the whims and product of the annual budget debate and appropriations act.

For twenty-five years, the State’s distressed municipalities have received ever-increasing levels of state taxpayer support, above and beyond that provided by State municipal aid. These programs were provided with little to no State oversight, accountability or guidance. The general result was that distressed municipalities came to rely on these funds in their budgets as an annual appropriation and had no incentive to improve their fiscal management or regain their financial footing.

Upon taking office, Governor Christie has acted on a commitment to aggressively work as a partner with distressed municipalities and to implement responsible management practices, increase accountability and transition toward self-reliance and away from the need for additional state taxpayer funds.

The Christie Administration has aggressively overseen the Transitional Aid to Localities Program through efforts such as:

• Setting and enforcing conditions for the receipt of aid through Memorandums of Understanding;

• Implementing a meaningful, rigorous application process for aid awards where none existed before;

• Requiring regular oversight meetings with DCA and municipal officials to monitor the use of funds and efforts to control costs;

• Utilizing staff to consult with municipalities and assist with professional reviews of municipal operations;

• Advising and consulting with municipal cost-saving initiatives, including police and fire department restructuring to reduce overhead and ensure public safety programs are both efficient and effective;

• Requiring DCA approval for employee hiring;

• Denying non-essential hires, raises, contracts and expenditures and unnecessary travel.

In order for the Transitional Aid program to remain successful, the State must continue to maintain oversight of these transitional funds, and work cooperatively with municipalities in order to guide municipalities in their transition off of state taxpayer subsidies.

A copy of the Governor’s proposed legislation to restore oversight to Transitional Aid can be found here.

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Governor Chris Christie Announces Education Allocation Plan Which Increases School Funding for Every District in New Jersey

Trenton, NJ – Furthering Governor Christie’s commitment to providing the resources and reform to improve education for every New Jersey child, the Christie Administration announced today the allocation plan for $850 million in new aid authorized for New Jersey schools in the Fiscal Year 2012 Budget. This commitment to education includes the Governor’s initial $250 million increase for all school districts, as well as an additional $450 million for the Abbott districts, and an additional $150 million for non-Abbott districts. With this new funding, total state aid to education will be higher in Fiscal Year 2012 than it was when Governor Christie took office.

“This year, New Jersey increased state aid to school districts by $850 million over last year, restoring every dollar of the cuts we were forced to make last year and increasing aid by an additional $30 million. We are keeping faith with our commitment to New Jersey’s children and families, spending more money per pupil on New Jersey’s students than almost any other state in the country,” said Governor Christie. “Now is the time to complement the dollars spent with real education reform to bring a focus on student learning, accountability and results.”

Today’s funding includes an additional $450 million for the 31 Abbott districts, which fully funds them under the School Funding Reform Act formula, and an additional $150 million for non-Abbott districts, doubling the increase that the Governor had already approved in February as part of his Fiscal Year 2012 Budget. This increase in education aid will provide important property tax relief to New Jerseyans as the state increases its support for local schools.

“Being able to provide additional education funding to districts this year further affirms this Administration’s commitment to ensuring each and every child in New Jersey receives a quality education,” said Acting Education Commissioner Chris Cerf. “It is now time to focus on aggressive education reform, concentrating on improving standards, assessments, and curriculum; strengthening the use of performance and accountability data; improving educator effectiveness; and investing in innovative models of educational delivery.”

Governor Christie is committed to making 2011 the year of education reform. He has put forward a Reform Agenda that brings necessary and long overdue changes to the public education system that focuses on accountability, makes teacher effectiveness and student achievement the driving forces behind public policies and practices, empowers parents with greater school choice, and expands high quality public charter schools in New Jersey to ensure that every child in our state has access to a quality education and achieves the results they deserve.

The county and school district allocation lists can be viewed at: http://www.state.nj.us/education/stateaid/1112/

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BECK FLIPS POSITION ON MARRIAGE EQUALITY DUE TO POLITICS

The ultimate hypocrisy – voters in the 11th District are tired of professional politicians who play the public

The following is a statement issued by 11th District Democratic Senate Candidate Ray Santiago in response to a July 3rd Courier Post news report that incumbent Senator Jennifer Beck will flip her position on marriage equality:

“News this weekend that Senator Beck will now support marriage equality after voting against it when all of New Jersey was watching is not shocking to anyone who has followed Beck’s career as a professional politician. She now faces a district which includes Asbury Park, Ocean Grove & other LGBT friendly areas – a new district which has 10,000 more registered Democrats than Republicans – therefore, it should come as no surprise that Senator Beck is flipping her position only due to politics.

The reality is that New Jersey taxpayers are tired of hypocritical, professional politicians who change their positions based on the political climate. Republicans, Democrats and all New Jerseyians should be tired of politicians who play the public. It is not like the Senator opposed marriage equality because it is in her belief system, it was simply due to the politics of a new district.This is an issue of human rights and Senator Beck plays politics – She voted against marriage equality not once, but twice – once in the judiciary committee and a second time on the floor of the senate and now because of a new district, she claims she supports it.

When it mattered most and the world was watching, Senator Beck decided to appease Chris Christie and her Tea Party base. All New Jerseyians who support human rights and full marriage equality for all of our brothers and sisters in the LGBT community will see through Beck’s incredible hypocrisy.

I have and always will support full marriage equality for all New Jerseyians and 11th district residents can be assured that I will not change my position based on politics. Marriage equality is a human rights issue which I will fight day and night for until it becomes law. It is a sad day to see a New Jersey state senator play politics on an issue of human rights.”

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Governor Christie Keeps Commitment to New Jerseyans with Balanced Budget, Increased Education Spending and Job Creating Tax Cuts

Trenton, NJ – For the second year in a row, Governor Chris Christie has enacted a constitutionally balanced budget that reduces spending, does not raise taxes and protects critical priorities like education and health care. The revised budget is grounded in reality and is the polar opposite of a reckless Democratic spending plan the Governor was forced to line-item veto by nearly $1 billion in order to meet the state’s constitutional obligation to deliver a balanced budget for the next fiscal year. At the same time, the budget builds on the hard-won progress made over the last year to right New Jersey’s fiscal course over the long term, and also protects key priorities and encourages job growth. The Governor maintained his commitment to education by increasing funding by $850 million over last year’s budget. In total, this means every dollar of cuts made last year has been restored and increased by an additional $30 million.

Additionally, the Governor took action rejecting job-killing tax increases and signed into law additional targeted tax cuts for small business and job creators.

“It is my solemn pact with the residents and taxpayers of New Jersey to never allow a return to the kind of reckless, autopilot spending that devastated our state’s economic health in years past and which was embodied in the budget I repaired, a relic of days when there was no concern for the state’s fiscal reality,” Governor Chris Christie said. “Let me be clear – New Jersey is only going to spend the money we have. We are not going to revert back to business as usual and undo all the progress that has been made to improve New Jersey’s long-term fiscal health. The actions I have taken today reinforce a commitment to protecting taxpayer dollars, safeguarding critical priorities like education, and rejecting tax increases that impede economic expansion and job creation.

“This budget is not only constitutionally balanced, but represents my commitment to education. This year’s budget managed to increase funding by $850 million and does so in a fiscally prudent budget. New Jersey continues to spend more money per pupil than any other state and now is the time to complement the dollars spent with real education reform. Now is the time to turn our focus and energy to tackling the next big thing for our state – education reform,” concluded Governor Christie.

The Governor’s remedies, a combination of the line-item veto on the appropriations bill and the absolute veto, ensure the state will go into the next fiscal year with a constitutionally balanced budget, puts New Jersey on stronger fiscal footing and funds key commitments:

· Governor Christie’s adjusted budget spends $29.7 billion, $900 million less than the Democratic budget and maintains a healthy and necessary surplus;

· Increases state aid to school districts by $850 million over last year. This commitment to education includes the Governor’s initial $250 million increase for all school districts, meeting the Supreme Court’s mandate by providing an additional $450 million to the Abbott districts, and an additional $150 million for non-Abbott districts;

· Doubles the Homestead Benefit to provide property tax relief for New Jersey families;

· Increases and secures funding for New Jersey hospitals by $20 million;

· Provides full funding for healthcare to low-income earners and the uninsured through Federally Qualified Health Centers;

· Provides $180 million in targeted tax cuts and incentives to grow the economy and create jobs;

· Fulfills New Jersey’s commitment to make the state’s pension fund payment;

· Doesn’t raise taxes on individuals and job creators at a time when New Jerseyans are already subject to one of the highest state income tax rates in the nation and New York is reducing its tax burden; and

· Preserves critical spending for senior and disabled prescription aid.

In addition to returning a responsible and balanced budget to the Legislature, Governor Christie took other action today to stop job-killing tax increases and create a competitive climate for economic growth. Governor Christie vetoed Assembly Bill 4202, a Democratic proposal that would raise taxes on individuals and businesses at a time when New Jerseyans are already subject to one of the highest state income tax rates in the nation. The proposed income tax hike would directly hurt small business and exacerbate the volatility of New Jersey’s revenue base, considering that 71 percent of the taxpayers who pay the top tax rate under this legislation report income from business activity, and nearly 42 percent of the revenue subject to this tax increase represents business income.

The Governor signed into law today two additional pro-growth tax cuts that were part of his budget proposal that will eliminate the cap on the corporation business tax research credit and decrease the minimum corporation business tax on S-corps by 25 percent. Previously, on April 28, Governor Christie signed two tax cuts that he had initially proposed, the single-sales tax factor and net-loss carry forward. In addition, as initially proposed by Governor Christie, the Transition Energy Facility Assessment will phase out over the next three years, reducing energy costs for New Jersey families and businesses. In total, these pro-growth measures provide $180 million in targeted tax relief for New Jersey businesses and entrepreneurs.

The Governor also vetoed Assembly bill A-4204 in a fiscally responsible move that allows the State to continue to provide the Earned Income Tax Credit (EITC) at a level that the State’s taxpayers can sustain. While a difficult decision, providing the State EITC at 25 percent of the federal EITC is not affordable and not sustainable, which is why the Legislature passed and the Governor signed into law last year legislation to make the State EITC equal to 20 percent of the federal EITC. He also absolutely vetoed the Democrat’s supplemental spending bill, A-4203, which was unconstitutional because it provided educational spending outside of the budget appropriations act.

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New Jersey Leads the Way with Landmark Bipartisan Pension and Health Benefits Reform

Governor Christie Secures Final Legislative Passage for Bold, Bipartisan Reforms to Restore Fiscal Sanity to an Out of Control System and Provide Over $120 Billion in Taxpayer Savings

Trenton, NJ – Demonstrating once again that New Jersey is leading the way with bipartisan solutions for the toughest challenges facing states today, Governor Christie secured final legislative passage tonight for landmark pension and health benefit reform. The reforms passed this evening in the Assembly after receiving passage in the Senate on Monday. The fundamental reforms, passed with bipartisan support from Senate President Steve Sweeney and Assembly Speaker Sheila Oliver, will shake up New Jersey’s out-of-date, antiquated and increasingly expensive pension and health benefit systems. These historic reforms bring to an end years of broken promises and fiscal mismanagement by securing the long-term solvency of the pension and benefit systems, while at the same time achieving critical savings for state and local governments. Pension reform alone will provide savings to New Jersey taxpayers of over $120 billion over the next 30 years, and an additional $3.1 billion over the next 10 years from health benefits reform.

“Together, we’re showing New Jersey is serious about providing long-term fiscal stability for our children and grandchildren. We are putting the people first and daring to touch the third rail of politics in order to bring reform to an unsustainable system,” Governor Chris Christie said. “I want to thank Senate President Sweeney and Speaker Oliver for putting aside politics, committing themselves to reform and remaining unwilling to settle for anything less than the real, viable solutions New Jerseyans have been demanding.”

The reform legislation both secures the long-term solvency of the pension system by achieving a projected funding ratio of 88% within the next thirty years while providing over $120 billion in savings for New Jersey taxpayers. Similarly, the reforms to the health benefit system will save New Jersey taxpayers $3.1 billion over the next 10 years alone while offering greater choice and affordability. The combined savings from these reforms directly translates to real property tax relief for New Jersey families and budget relief for local governments.

Governor Christie continued, “We are once again showing the people of New Jersey that our state is leading the way on the biggest challenges before us and remains unafraid to do what is hard, but necessary. Instead of just talking about reform, New Jersey has come together in a bipartisan way, put our heads down and actually gotten the work done. We are fixing our pension and health benefit systems in order to save them and in the process bringing fiscal sanity to our state.”

In September 2010, Governor Christie first laid out a series of ambitious reform proposals to deal with an immediate combined unfunded liability for the pension and benefit system of $121 billion. Recognized as key cost-drivers for government at the state and local levels, the Governor once again made clear in his 2011 State of the State that modernizing the pension and benefit system in New Jersey was one of the big things to be achieved this year.

Governor Christie will sign the landmark reforms into law on Monday, June 27.

The Pension Reform Plan: Protecting Retirees and Providing New Jerseyans Over $120 Billion in Taxpayer Savings By 2041

The reforms will ensure long-term solvency, while slowing the rapid growth of government costs, spending and taxes that have overwhelmed taxpayers.

With reform, future retirees are protected and New Jerseyans provided with over $120 billion in taxpayer savings through 2041.

Increasing the Funding Ratio of the Pension System to 88%. These reforms protect the pension system for retirees, increasing the funded ratio of the combined state and local systems from the current 62% to more than 88% over the next thirty years. By 2041, this will reduce total pension underfunding to $37 billion. Without these critical reforms, the unfunded liability across the pension systems would have skyrocketed to $183 billion, resulting in a massive impact on state and local budgets.

Providing New Jerseyans Over $120 Billion in Taxpayer Savings by 2041. This comprehensive set of reforms means critical savings for state and local governments and real property tax relief for New Jerseyans.

· $79 Billion in State Contribution Savings: Over the next 30 years, the state pension contribution will be $148 billion, a projected savings of nearly $80 billion. Without reform, the state is projected to contribute $227 billion over the same period.

· $43 Billion in Local Government Contribution Savings: Over the next 30 years, local government pension contributions will be $70 billion, a projected savings of nearly $43 billion. Without reform, local governments are projected to contribute $113 billion over the same period.

Changes for All New Public Employee Retirement System (PERS) and Teachers Pension and Annuity Fund (TPAF) Employees:

· Updating the Formula for Retirement Eligibility:

Establishing the normal and early retirement age at 65 years.
Adjusting the early retirement penalty to 3 percent for each year.
Increasing eligibility for early retirement to 30 years of service.

Changes for All New Police and Fire Retirement System (PFRS) Employees:

· Updating the Formula for “Special Retirement” Eligibility:

o Changes eligibility for special retirement from 65% with 25 years of service to 65% with 30 years and 60% with 25 years.

Changes for All Active Employees (Judicial Retirement System (JRS), PERS, TPAF, PFRS and SPRS):

· Employee Contribution Rate:

Current Reform Legislation

PERS/TPAF 5.5% 6.5% (+1 additional point phased-in over 7 years to a 7.5% total)

PFRS 8.5% 10.0%

SPRS 7.5% 9.0%

JRS 3.0% 12.0% (increase phased-in over 7 years)

Changes for All Current and Future Retirees:

· Eliminating Automatic Annual Payment Increases: Eliminates all statutory Cost of Living Adjustments (COLAs).

A New Paradigm for Pension Plan Design:

· The legislation creates a new Plan Design Committee for each pension plan. The Committees will have new authority to change important plan design features — such as retirement ages, employee contribution levels, and future cost-of-living adjustments (COLA) — within a financially prudent framework that mandates an ongoing, stable level of funding for each system.

· A “Target Fund Ratio” (TFR) will define the boards’ ability to make plan design changes. The TFR is a target ratio of a fund’s actuarial value of assets (AVA) to that fund’s actuarially determined liabilities. In general, only funds that are at or above the TFR will have flexibility to make plan design changes.

o A “Target Fund Ratio” (TFR) of 75% is established as of the legislation’s effective date, increasing to 80% over seven years.

o Only funds meeting or exceeding TFR will be eligible to make plan design changes. Funds below TFR may not make changes.

o Funds above the TFR but below 80% (during the seven-year phase-in period) may make only those changes that do not reduce their funded ratio upon implementation or below the TFR at any time within the succeeding thirty years.

o Plans above 80% may not make changes that bring their funded ratio below 80% upon implementation or at any time within the succeeding thirty years.

· In general, pension funds are considered to be adequately funded if their AVA funded ratio is at or above 80% (the federal standard for “at-risk” funds).

o At the end of fiscal 2010, the State’s plans’ combined AVA funded level was just 56 percent.

· The State Investment Council will expand from 13 to 16 members and include more direct public employee stakeholder input.

Changes to Reflect More Realistic and Financially Sound Principles:

· Amortization methodology is changed from a percentage of pay schedule (which defers the retirement of any unfunded liability) to a level dollar amount each year in order to retire part of the system’s unfunded liability each year and earlier than the previous methodology.

· Amortization methodology is changed from a 30 year open period (which retires less of the unfunded liability each year and results in a lower funded ratio) to a maximum open period of 20 years (phased-in over 19 years).

The Health Benefit Reform Plan: Transforming the System to Create Choice and Lower Costs for New Jersey Taxpayers

The reforms will modernize the State employee health benefits plans by bringing the system more in line with the private sector and federal government. Today, New Jersey’s unfunded other post-employment Benefits (OPEB) liability for providing health benefits is $71.4 billion. These reforms will substantially lower health benefits costs for local governments, including those at the county, school and municipal levels, representing another major step forward in providing real, long-term property tax relief. New Jersey spends $4.4 billion annually on public employees and retiree health care costs, with the cost of health benefits making up 9% of the State’s budget today.

The reforms will result in $3.1 billion savings for taxpayers over the next 10 years alone, while increasing choice for employees and ensuring affordability.

Cost Sharing Reforms for Active Employees:

All public employees will pay a statutorily-established percent of premium (“premium share”), instead of a percentage of salary, for all State Health Benefits Plan (SHBP)/School Employee Health Benefits Plan (SEHBP) and non-SHBP/SEHBP participating plans.

The employee’s share will phase in over four years.

The premium share requirement will not affect employees until their current contract expires.

Premium shares will vary by salary level and coverage, but may not be less than 1.5% of salary (the current standard).

Current employees (excepting those with 20 or more years of service as of the effective date) will pay a premium share in retirement based on the date they reach 25 years of service. If they reach 25 years after the effective date, the employee will pay the premium share in effect based on the date s/he reaches 25 years (i.e., if the employee reaches 25 years in year two of the four year phase-in, then the employee, in retirement, will pay the premium share in effect in year two of the phase-in.)

Changes for Current Retirees:

There will be no change with respect to premium cost sharing for current retirees.

Changes for Local and Education Employees Outside SHBP/SEHBP:

If the employer is not participating in the SHBP/SEHBP, then the employer and employee could agree to a different premium share and out-of-pocket cost arrangement that results in the same level of savings as the statutory premium share formula and plan design changes in the SHBP/SEHBP.

Savings would have to be certified by Division of Local Government Services and Division of Pensions and Benefits and the local Financial Officer in each local entity.

All local employers are required to offer a Section 125 “cafeteria plan” to employees.

Health Plan Design Reforms

Joint Employer and Employee Plan Design Committees:

For both SHBP and SEHBP, a state-level joint employee-employer Plan Design Committee is established. The employer and employees are equally represented.

Committee Role in Plan Design:

The Committees are responsible for providing plans with at least three levels of coverage, featuring varying levels out-of-pocket costs. The Committees have sole discretion to set the amounts for maximums, co-pays, deductibles, and other such participant costs for each plan.

The Committees must also provide for a high deductible health plan.

All current statutory requirements with respect to plan design will be repealed.

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Better Education for Kids Launches Radio Ad To Promote Education Reform

New Brunswick (June 22, 2011) – Better Education for Kids (B4K), a 501(c)(4) organization, launched a new statewide radio ad this morning.

The ad, which begins the second campaign launched by the organization this month, calls for bipartisan common sense changes to New Jersey’s public education system.

“We need a new way forward in New Jersey. It’s time to end politics as usual and give parents, students and concerned citizens a real voice in this debate. Every child deserves to receive a first-rate education and an opportunity to succeed in the 21st century. We need to act now and make New Jersey’s public school system a national model for student achievement. It’s time to end special interest domination of our public education system and put our children’s interests first,” said Derrell Bradford, Executive Director of Better Education for Kids.

B4K believes student achievement should be the first priority of the New Jersey school system. Every student should have the opportunity to learn from a great teacher and every school should have a great principal. We need to elevate the teaching profession so that great teachers and principals are rewarded with merit pay and tenure becomes a significant professional milestone!

The ad can be heard on: www.b4njkids.org

Better Education for Kids (B4K) is an independent non-profit organization established to

promote education reform in New Jersey.

B4K is a 501(c)(4) organization under the Internal Revenue Code and is not affiliated with

any political group or committee.

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