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New Jersey Public Worker Pension Plan Amendment (2016)
| New Jersey Public Worker Pension Plan Amendment | |
|---|---|
 | |
| Election date November 8, 2016 | |
| Topic Pension | |
| Status Not on the ballot | |
| Type Constitutional amendment | Origin State legislature |
| Not on Ballot |
|---|
 |
| This measure was not put on an election ballot |
The Public Worker Pension Plan Amendment was not on the November 8, 2016, ballot in New Jersey as a legislatively referred constitutional amendment.
The New Jersey legislature did not vote on the potential measure by the August 8, 2016, deadline.[1]
Overview
What would the measure do?
The amendment would have outlined a new public pension payment plan that would have required the state to pay toward pensions four times per year, rather than annually. Starting in the 2018 fiscal year, the state would have had to contribute $2.4 billion, then that amount would have been raised to $5.5 billion by 2020.[2][3]
Why the new plan?
New Jersey's public-sector pension system was $40 billion in debt and two large pension funds for state teachers and workers could run dry in 2027 and 2024, respectively. Full payments have not been made by the state for nearly 20 years. Opponents are concerned increasing payments would put further strain on an already tight state budget. New Jersey ranked 47th in the nation in its preparation and readiness for a possible economic downturn, according to a January 2016 study from the Mercatus Center at George Mason University in Virginia.[4][5]
Text of measure
Ballot text
The ballot text was as follows:[6]
| “ | Do you approve amending the Constitution to require the State to make its payment to the pension systems for public employees each year and to establish in the Constitution the rights of public employees vested in these pension systems to receive earned pension benefits?
The State would have until July 1, 2021 to start making each year’s pension payment in full. Until then, the State would make a partial, but increasing, payment each year. The payment would be made on a quarterly basis.[7] |
” |
Interpretive statement
An interpretive statement of the measure was as follows:[6]
| “ | This amendment to the Constitution concerns the State’s payment to the pension systems for public employees and the pension benefits of those employees.
Current law, adopted in 2011, required the State to make its pension payment each year. The New Jersey Supreme Court ruled that the State could not be compelled to make the payment because of certain provisions in the Constitution. This amendment is a response to that ruling. This amendment would require the State to make its pension payment each year as a constitutional obligation. The obligation would be enforceable in the State courts. Payment of the full amount would start July 1, 2021. Until then, partial, but increasing, payments would be made each year. Quarterly payments would be made on the first day of August, November, February, and May of each year. This amendment requires the annual State budget law to include the pension payment. Current law provides a non-forfeitable right to receive a pension benefit for vested public employees who were employed before May 21, 2010. This amendment would incorporate that right into the Constitution. This amendment would establish the right of vested public employees hired after May 21, 2010 to receive earned pension benefits after ten years of service. These rights would be enforceable in the State courts. This amendment does not increase any pension benefit.[7] |
” |
Full text
The full text of the measure can be found here.
Support
Supporters
The bill was sponsored by Sen. Stephen Sweeney (D-3), Sen. Shirley Turner (D-15), Sen. Linda Greenstein (D-14), Assemblyman Vincent Prieto (D-32), Assemblywoman Angelica Jimenez (D-32), Assemblyman Wayne DeAngelo (D-14), Assemblyman Benjie Wimberly (D-35), Assemblyman Paul Moriarty (D-4), and Assemblyman Bob Andrzejczak (D-1).[6]
Organizations
- New Jersey Communications Workers of America[8]
Arguments in favor
Sen. Stephen Sweeney (D-3) said,[9]
| “ | This is a smart and fiscally responsible way to manage state finances and the pension system. It will save the taxpayers money and help bring more fiscal stability. This is about living up to promises and agreements but it is also the best way to serve all taxpayers.[7] | ” |
Sen. Raymond Lesniak (D-20) argued:[10]
| “ | We have been avoiding these difficult decisions for way too long and in the process have jeopardized the viability of the public employees' pension fund. The one thing that should be sacred, that our government should make sacred. ... This is what they rely on after a career of work. It's what they look forward to. It's what they've earned and what they deserve.[7] | ” |
Sen. Linda Greenstein (D-14) stated:[9]
| “ | We have a legal and ethical responsibility to meet our pension requirements. Public employees are living up to their responsibilities by making their contributions, the state should be meeting its responsibilities as well.[7] | ” |
Sen. Shirley Turner (D-15) said,[9]
| “ | The governor has already certified that he can make the 2018 pension payment that would be required by the constitutional amendment out of existing revenues without any tax increase of any kind.[7] | ” |
Steve Leadley, a writer from Cape May Court House, wrote in a column in the Courier-Post:[11]
| “ | Some have criticized the amendment solution by stating that if it passed, taxes would increase. Actually, the proposed amendment will save taxpayers billions by ensuring that the payments will be made quarterly. This will not only help stabilize the pension system but also aid in repairing our state’s credit rating, which continues to get downgraded by the ballooning pension liability.[7] | ” |
Seth Hahn, political director for the New Jersey Communications Workers of America, said,[8]
| “ | If we can afford yet another round of tax cuts for the wealthiest among us, then we can afford to pay every last dime in benefits promised to workers who every day do their jobs for this state.[7] | ” |
Opposition
Opponents
- Gov. Chris Christie (R)
Arguments against
Gov. Christie argued:[12]
| “ | Public (plan) pensioners would be a special class of citizens whose retirement is protected above all other public concerns. ... All of those issues—education, health care, crime, our environment, support for the poor, protection for our children—would be subject to elimination to pay for the pensions of 800,000 current and former public employees.[7] | ” |
Tom Bracken, CEO of the New Jersey Chamber of Commerce, said,[13]
| “ | This is an issue that could mean economic Armageddon for this state.[7] | ” |
Media editorials
Support
Ballotpedia has not found media editorials supporting the measure. If you are aware of an editorial, please email it to editor@ballotpedia.org.
Opposition
The Daily Record said,[14]
| “ | We can’t begin to support the Democratic plan until we start hearing from them real numbers about how they expect to pay the full freight. A millionaire’s tax and quarterly payments only gets them so far. How will they find the rest of the money? What will New Jerseyans have to sacrifice? Generalities and wishful thinking about a stronger economy. We need more than best-case scenarios; we need to know fallback possibilities if things don’t go as Democrats hope.[7] | ” |
Asbury Park Press published an article, saying,[15]
| “ | We understand the value and the need to deliver on those pension payments; any shortage in that area only increases the long-range burden. But this proposal goes much too far in eliminating future budget flexibility. Does anyone rationally have that much confidence our economy will steadily grow in the years ahead? Optimism is one thing, but lawmakers cannot make decisions based on blind, desperate hope.
So what happens when those revenues fall, the pension payments are made, and we’re stuck with an enormous budget hole? “Oops, sorry,” our leaders will say. “Our revenues haven’t grown the way we expected, and that’s somebody else’s fault. But voters wanted this.” No they don’t. Polls have shown New Jerseyans support the pension guarantees, but not at the expense of school funding, or transportation funding, or tax increases. Unfortunately, many voters don’t understand the guarantee could very well lead to any or all of those consequences. Supporters want to keep it that way, so all we hear out of them is that we’ll be just fine given reasonable, expected economic growth. That explanation, however, isn’t remotely good enough. We need to hear more about less rosy outlooks — and not just from critics of the plan. If champions of the amendment say they don’t want to deal in hypotheticals, then they shouldn’t be talking about projected revenue growth either. Economic projections are always hypothetical — and can be quickly blown out of the water by countless events.[7] |
” |
Path to the ballot
- See also: Amending the New Jersey Constitution
Proposed constitutional amendments have two ways of achieving ballot access in New Jersey. The New Jersey Legislature could either qualify it with supermajority approval of 60 percent in one legislative session or with simple majorities in two successive sessions.
The New Jersey Senate approved the amendment by a 23-to-16 vote on January 11, 2016, and the New Jersey General Assembly approved it by a 43-to-27 vote on the same day. Since the amendment did not pass with supermajority approval, it would have to receive another simple majority approval in the following consecutive legislative session, which began January 12, 2016.[2] On June 27, 2016, the General Assembly approved the amendment 50-to-25.[16] If the Senate would have approved the amendment, the measure would have appeared on the November 8, 2016, ballot. The New Jersey legislature did not vote on the potential measure by the August 8, 2016, deadline.[1]
Senate vote
January 11, 2016
| New Jersey SCR 184 Senate Vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
 Yes | 23 | 59% | ||
| No | 16 | 41% | ||
General Assembly vote
January 11, 2016
| New Jersey SCR 184 General Assembly Vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 43 | 61% | ||
| No | 27 | 39% | ||
General Assembly vote
June 27, 2016
| New Jersey SCR 184 General Assembly Vote | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 50 | 66.67% | ||
| No | 25 | 33.33% | ||
Related measures
| Labor and unions measures on the ballot in 2016 | |
|---|---|
| State | Measures |
| South Dakota | South Dakota Right for Organizations to Charge Fees for Services, Initiated Measure 23  |
State profile
| Demographic data for New Jersey | ||
|---|---|---|
| New Jersey | U.S. | |
| Total population: | 8,935,421 | 316,515,021 |
| Land area (sq mi): | 7,354 | 3,531,905 |
| Race and ethnicity** | ||
| White: | 68.3% | 73.6% |
| Black/African American: | 13.5% | 12.6% |
| Asian: | 9% | 5.1% |
| Native American: | 0.2% | 0.8% |
| Pacific Islander: | 0% | 0.2% |
| Two or more: | 2.5% | 3% |
| Hispanic/Latino: | 19% | 17.1% |
| Education | ||
| High school graduation rate: | 88.6% | 86.7% |
| College graduation rate: | 36.8% | 29.8% |
| Income | ||
| Median household income: | $72,093 | $53,889 |
| Persons below poverty level: | 12.7% | 11.3% |
| Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in New Jersey. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. | ||
Presidential voting pattern
- See also: Presidential voting trends in New Jersey
New Jersey voted for the Democratic candidate in all seven presidential elections between 2000 and 2024.
Pivot Counties (2016)
Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, two are located in New Jersey, accounting for 0.97 percent of the total pivot counties.[17]
Pivot Counties (2020)
In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. New Jersey had one Retained Pivot County and one Boomerang Pivot County, accounting for 0.55 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.
More New Jersey coverage on Ballotpedia
- Elections in New Jersey
- United States congressional delegations from New Jersey
- Public policy in New Jersey
- Endorsers in New Jersey
- New Jersey fact checks
- More...
See also
- New Jersey 2016 ballot measures
- 2016 ballot measures
- New Jersey Legislature
- List of New Jersey ballot measures
External links
Footnotes
- ↑ 1.0 1.1 Wall Street Journal, "N.J. Pension Overhaul Won’t Appear on November Ballot," August 8, 2016
- ↑ 2.0 2.1 Pensions & Investments, "N.J. Legislature passes first hurdle for constitutional amendment on pension contributions," January 12, 2016
- ↑ New Jersey Herald, "Redistricting amendment stalls but pensions, more go forward," January 11, 2016
- ↑ Philly.com, "Despite warnings, N.J. Senate, Assembly back pension measure," January 11, 2016
- ↑ Asbury Park Press, "Christie: Expand addiction help, reject pension question," January 12, 2016
- ↑ 6.0 6.1 6.2 New Jersey Legislature, "SCR 184," accessed January 13, 2016
- ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 8.0 8.1 Burlington County Times, "NJ pension amendment debated during public hearing," June 20, 2016
- ↑ 9.0 9.1 9.2 NJToday.net, "Constitutional pension fix on the November 2016 ballot," January 11, 2016
- ↑ NJ.com, "N.J. Legislature clears public worker pension ballot question," January 11, 2016
- ↑ Courier-Post, "Rabble rouser: Amendment will fix pension mess," April 6, 2016
- ↑ Pensions & Investments, "Gov. Christie derides plan for New Jersey constitutional amendment on pension contributions," January 12, 2016
- ↑ Burlington County Times, "NJ pension amendment debated during public hearing," June 20, 2016
- ↑ Daily Record, "EDITORIAL: Pension amendment a potential disaster," January 15, 2016
- ↑ MyCentralJersey.com, "EDITORIAL: Pension plan guarantees trouble," June 28, 2016
- ↑ Pensions & Investments, "New Jersey amendment guaranteeing pension contributions moves closer to ballot," June 28, 2016
- ↑ The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.
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