New Jersey Gov. Chris Christie, delivering his state of the state address in the midst of a scandal over his subordinates' efforts to punish a political opponent, called for reform of the state's pension system and reduced debt service payments.
Christie made proposals for improving K-12 education, preventing crime, and rehabilitating drug users and other parts of society, but said near the end of the speech that the state could not afford all of his plans immediately.
Large pension and debt service costs are the problem, he said in the address Tuesday afternoon. For fiscal year 2015, the increase in pension and debt service costs could amount to as much as nearly $1 billion. New Jersey's approved budget is about $33 billion.
Christie said it was time for a conversation about further pension system changes and the state's debt service costs. Christie said he would oppose raising taxes to support state government's spending needs and desires.
"If we do not choose to reduce our soaring pension and debt service costs, we will miss the opportunity to improve the lives of every New Jersey citizen, not just a select few," Christie said.
Christie responded to the scandal that erupted this week as it was revealed that direct subordinates created a traffic jam in Fort Lee, N.J., after the mayor declined to endorse the governor in his reelection campaign. "Mistakes clearly were made," Christie said. "I'm the governor. I'm ultimately responsible for all that goes on under my watch."
Christie said he would not allow the problems to delay the state government's work to improve people's lives.
New Jersey's general obligation debt is rated Aa3 by Moody's Investors Service, AA-minus by Fitch Ratings, and AA-minus by Standard & Poor's. Moody's and S&P have negative outlooks on their ratings. Fitch has a stable outlook.
