Rich Zeoli Talks With Erika Klemens About New Jersey Supreme Court Ruling On Pension Payments
PHILADELPHIA (CBS) -- Erika Klemens, the Director of Americans for Prosperity - New Jersey, agreed with a New Jersey Supreme Court ruling allowing Governor Chris Christie to forgo making full payments to the state's pension system after agreeing to make them four years ago.
Klemens told Rich Zeoli on Talk Radio 1210 WPHT the arrangement between Christie, the legislature, and the unions is unconstitutional.
"The 2011 pension reform that went to the legislature and was signed by the Governor, that was just found to be unconstitutional once the unions had sued, and they said it was actually a contract, what the legislature put forward. The Supreme Court came down and said, no, it's not considered a contract and only the legislature can act. Actually, they reduced pension payments into the system, so we've seen a shortfall."
She stated the court substantiated Governor Christie's claim that the state government does not have money in the budget to make the full payment, so he's decided against doing it.
"They're saying you don't have to. They actually came and said that last year as well, basically kicking the can down the road and when we don't have the money to put in it, you can't make the legislature do that."
Klemens said it is the legislature's responsibility to fully allocate the resources necessary.
"We really don't have the money here to afford the full pension payment but we need to really get our financial house in order. I know that a lot of the unions have been frustrated. Honestly, this is the court actually making a pretty solid decision here saying they can't get involved. It's the New Jersey legislature that has to get our state's financial house in order."