Fitch downgrades N.J. debt, saying Christie is repudiating his pension reform

NJ.com | The Star-Ledger ^ | September 05, 2014 | Salvador Rizzo | The Star-Ledger

[Mad Dawgg]

TRENTON---- Wall Street analysts at Fitch Ratings today downgraded New Jersey's bond rating for the second time this year, citing the state's poor economic performance, Gov. Chris Christie's rosy revenue forecasts — which failed to materialize — and his decision to plug the resulting budget gap by cutting $2.4 billion from payments scheduled for the state's strained pension system.

Fitch said Christie's decision to cut the pension payments this year marked a "repudiation" of a bipartisan plan he signed to fix the beleaguered pension system, which is underfunded by nearly $40 billion, according to state estimates.

Instead of pumping bigger cash infusions every year into public workers' retirement accounts to save them from collapse, as Christie and lawmakers agreed to do in 2010, the state was now stepping away from its plan, the agency said.

"Following significant revenue underperformance, the state relied upon the repudiation of its statutory contribution requirements to the pension systems to return to budgetary balance, exacerbating a key credit weakness," the Fitch analysts wrote in a note to investors, lowering their rating on the state's debt from A+ to A.

[Mad Dawgg]

Very far up the mountain the pebbles are shaking loose and starting down the slope, gathering momentum and mass as they go...

[BlueStateRightist]

Once a state is DEEP BLUE it’s akin to severe anoxic brain injury. Damage is irreversible.

[tennmountainman]

Krispy Cream only knows two things.

How to run his mouth

Or how to stuff his mouth.

[mrsmel]

I’m afraid that you are correct. I am worried for the South in this regard, the left is working hard through demographic change (both foreign and leftist infestation from other states) to turn southern states blue.

[SoFloFreeper]

Chris Christie's rosy revenue forecasts — which failed to materialize...

Sounds like his good buddy Barack Hussein Obama.

[Mad Dawgg]

I can't disagree with his NOT funding the Pension Funds. If the money is not there then too bad.

You can't keep charging up the credit card, eventually someone has to pay or take the responsibility for the debt and too often it is the American Taxpayer...

[Alberta's Child]

Exactly. New Jersey is in a race with California and Illinois to see which will be the first state to default on its pension obligations.

[VRWC For Truth]

Fat boi is a f’n DemocRat.

[Mad Dawgg]

"Exactly. New Jersey is in a race with California and Illinois to see which will be the first state to default on its pension obligations."

[Intolerant in NJ]

...owngraded New Jersey's bond rating for the second time this year, citing the state's poor economic performance...gee, I hope that the fact that two-third of the voters in this state approved a rise in the minimum wage to over $10- an hour had nothing to do with that fianacial underperformance.....

[Mad Dawgg]

"I hope that the fact that two-third of the voters in this state approved a rise in the minimum wage to over $10- an hour had nothing to do with that fianacial underperformance..."

No politician will ever claim that unless he doesn't want a job in politics anymore..

[kearnyirish2]

You understand Christie is sparing NJ taxpayers the brunt of this pension boondoggle, no? He represents the taxpayers in the war against our government sector caste, and is doing a decent job.