>Doesn’t Anyone Remember Christine Whitman?

>In a CountyFair blog post on the website MediaMatters.org, blogger Jamison Foser asks a simple question “ Doesn’t Anyone Remember Christine Whitman?

It’s a great read and analogy of what transpired in the early 1990’s when young Republican Governors were swept into office and faced huge budget deficits after Bill Clinton became President and what is happening today.

“A young Democrat is elected President on a theme of hope and change, does some of the things he was elected to do, Republicans howl and win control of Congress in a landslide mid-term election, and the media becomes infatuated with a new crop of Republican governors who are trying to dramatically reconfigure state budgets.

“That’s a reasonable summary of the current state of affairs, but it also describes the first few years of Bill Clinton’s presidency. But it isn’t the similarity that’s striking: After all, there’s a reason the phrase “history has a way of repeating itself” exists. Or, perhaps more appropriately: “Those who fail to learn from history are doomed to repeat it.” See, what’s really striking about the current situation is how few reporters seem to remember what happened in the 1990s.

Most notably, the past few weeks have seen massive media attention paid to state budget deficits, and attempts by Republican governors like Chris Christie to blame out-of-control pension obligations for those deficits (even as they pursue deficit-increasing tax cuts…”

Foser goes on to talk about how NJ Governor Christie Whitman cut taxes and raided the state pension fund in order to close New Jersey’s budget gap even though many critics warned that the State Pension system would see significant shortfall 15-20 years down the road, which of course is what is happening to be now!

“Whitman was one of those star Republican governors of the early 1990s. Like so many other Republican governors who win media attention for innovative approaches, she made her name through the not-so-innovative strategy of cutting taxes. Since she had to offset those tax cuts in order to balance New Jersey’s budget, she reduced payments into the state’s pension system. And that, as the New York Times noted last August, “contributed to the growth of the unfunded liability” that is now widely blamed for New Jersey’s budget shortfall.”

He went on to state that none of this should have come as a surprise to anyone because “when Whitman was defunding the pension system in order to cut taxes, there were warnings that this is exactly what would happen. Here, for example, is a September 5, 1994 Washington Post article:
“The first thing Christine Todd Whitman did upon taking office as governor of New Jersey in January was to cut the state’s income tax. Then in July, as she signed into law her first state budget, the Republican cut taxes again while simultaneously closing the huge deficit left by her predecessor.

This is what her supporters call the Whitman miracle, the fiscal accomplishment that has sent her stock soaring among New Jersey’s voters and transformed her on the national scene from a political unknown into one of the Republican Party’s newest stars.

But the key to the Whitman miracle lies neither in her political philosophy nor in her spending cuts, but rather in the fine print of her budget. Contained there is a series of arcane fiscal changes that some experts say amount to this: Christine Todd Whitman has balanced New Jersey’s books and paid for her tax cut by quietly diverting more than $1 billion from the state’s pension fund.

Whitman calls what she did a “reform” of the pension system that puts it on a more “sound actuarial footing.” Others are less charitable. The one thing that even the actuarial consultants hired by the Whitman administration agree on, however, is that the chief effect of the changes will be to shift billions of dollars in pension obligations onto New Jersey taxpayers 15 to 20 years from now.”


“At best, this represents a gamble that the state’s economy in the early part of the next century will be stronger than it is today and better able to shoulder pension responsibilities. At worst, according to fiscal experts, Whitman’s move represents politics at its most cynical.

In recent years financially strapped governments around the country — including Washington, D.C., and New York state — have raided their pension funds for cash, gambling that when the bills come due their local economies will be in a better position to pay them.

“The New Jersey pension system was highly rated in terms of its fiscal integrity,” said [Henry] Raimondo of the Eagleton Institute. “Now that’s compromised. She has effectively slowed down” the amount of “money going into the system, and in around 2010 the liability to New Jersey taxpayers is going to grow dramatically.”

Foser concluded his post by adding:
“Let’s review: A Republican governor of New Jersey reduced payments to the state pension system so she could cut taxes. Critics warned doing so would cause significant budget shortfalls in 2010. 2010 rolled around, and — surprise! — so did budget shortfalls. And now those shortfalls are used by New Jersey’s current Republican governor (along with many in the media) to justify cutting pensions (while again cutting taxes.)

Basically, conservatives have staged an end-run around having a public debate over cutting pensions in order to pay for tax cuts. Rather than making the argument that tax cuts are more important than pensions, they just went ahead and cut taxes, raiding the pension system in the process, then waited 15 years for predictable — and predicted — deficits, which they now point to as evidence that the pension system is unsustainably generous. And they’ve done it with the help of countless news organizations that fall for this shell game.”

You really need to read the full post, it’s fascinating how history has once again repeated itself.
You can read it >>> here

3 Comments

Filed under 60 Minutes, Bill Clinton, Bill O'Reilly, budget deficit, Gov. Christie Whitman, Media Matters, New Jersey, pension deficit, Republican Governors, state pension system, tax cuts

3 responses to “>Doesn’t Anyone Remember Christine Whitman?

  1. >Florio was the first to tinker with the NJ pension funds. Too bad that information is overlooked by the lefties.

  2. >Whitman is the one who used the pension funds (failed to make required contributions) to balance her budgets.THIS IS NOT A PARTISAN ISSUE, It's a failure on both sides of the isle. Don't point fingers because THAT DOES NOT SOLVE THE PROBLEMS.And Christie's big mouth and no action won't fix anything either.LEFTIES OR RIGHTIES….they have all been WRONG !!!!!WHAT A JOKE THE BLAME GAME IS…Anon 11:58 a.m. and what a rear end you constantly try to be !!

  3. >My question in all of this pension discussion is did either Florio or Whitman take just the portion that the state provided,or did they include the payments made by employees also? Governor Christie was a member of Morris County freeholders when this happened. His comment about "getting in the delorean and going back in time" is pretty cavalier when he was an elected official at the time.Also, why should any man or woman who have to wear a protective vest have to conceed to giving up anything? Every day active members of PFRS kiss their spouse and family members good by, and that family member has to wonder for 8 hours if they will be welcoming them home or planning a funeral. These State Employees should never have to conceed to anything.But,hisotically, politicians know how to push the buttons of the general public by accusing state workers of being overpaid for underperformance. The politicians can rile up the hard working general public into a frenzy by saying their world would be better if "x" changes are made. Attacking state workers pay is normally the "x" they use. However, the civil service test is open to everyone, it does not discrimate on any level, so in reality, every citizen in the state of New Jersey has the potential to become a state employee based on a test score.How about the Governor, Assembly, and Senate start cutting some of their aids, secretaries, close down redundant posititions in Trenton. How about they post the pay of career Trenton employees with that of Police,Fire, Rescue and Corrections Officers who when 911 is dialed show up to aid you. I am sick of all state employees being considered as lazy and over paid.

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