Court: Christie Didn't Break His Own Law When He Cut Pension Funding

Gov. Chris Christie didn’t break the law -- legislation that he signed himself -- when he cut $1.57 billion in funding from the pension system, the New Jersey Supreme Court ruled in a 5-2 decision on Tuesday.

The N.J. Supreme Court ruled that state law providing higher payments into the pension system for seven years violated the constitution by creating additional long-term debt, according to the Supreme Court’s decision.

The move comes as Christie is considering a run for the presidency, and he’s made his ability to help balance the state’s budget a hallmark of his campaign. He’s also balanced the budget by cutting billions from the pension fund that he -- just four years ago -- promised to replenish.

Christie, who signed the law in 2011, said in a statement that the decision “is an important victory not only for our taxpayers who simply cannot afford these unsustainably high costs.”

In light of Tuesday’s decision, Christie said, he urges all interested parties to “come back to the table and partner with me to finally solve this problem once and for all.”

“The court’s position is clear, as is mine, it is time to move forward and work together to find a tangible, long-term solution to make our pension system and public employee health benefit costs affordable and sustainable for generations to come,” he said.

Justice Jaynee LaVecchia, an appointee of former Gov. Christie Whitman who wrote for the majority, said the state Legislature and governor “were without authority to enact an enforceable and legally binding long-term financial agreement through this statute.”

“Our conclusion that no enforceable contract was created here because the ‘Debt Limitation Clause’ prohibited the legislature and governor from binding the state to an enforceable contract,” according to the decision.

Justice Barry T. Abin, an appointee of former Gov. James McGreevey, wrote in his dissenting opinion that that the decision “strikes down a law ... vaunted by the governor and legislature as the solution to the state’s pension crisis.

“The decision strikes down the promise made to hundreds of thousands of public workers by the political branches of government that deferred wages earned for years of service would be funded during their retirement,” he wrote. “The decision unfairly requires public workers to uphold their end of the law’s bargain -- increased weekly deductions from their paychecks to fund their future pensions -- while allowing the state to slip from its binding commitment to make commensurate contributions.”

New Jersey Education Association President Wendell Steinhauer also released a statement, saying the Supreme Court ruling is a “blow to the rule of law in New Jersey.”

“It is devastating to all public employees, retirees, taxpayers and families,” Steinhauer said. “The court’s ruling that Gov. Christie is not bound by the laws that he signs and enforces on others is, in my view, indefensible.”

“This ruling does nothing to resolve or reduce the state’s pension liabilities. In fact, it affirms our members’ non-forfeitable right to receive their pensions. But it also allows the current administration to push that obligation off onto future taxpayers, with interest,” Steinhauer added.

New Jersey State Policemen’s Benevolent Association President Patrick Colligan also released a statement, expressing disappointment in the court’s ruling.

“Our law enforcement officers are out there every day working for our communities and continuing to make the payments required to make sure members and their families have a stable pension fund for their retirement,” he said. “ Today’s Supreme Court ruling is disappointing because it fails to make Governor Christie keep his promise to hard-working law enforcement officers.