{"id":2165801,"date":"2024-02-02T08:03:02","date_gmt":"2024-02-02T13:03:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-jersey-new-york-among-top-states-with-unfunded-liabilities-report\/"},"modified":"2024-02-02T08:08:37","modified_gmt":"2024-02-02T13:08:37","slug":"new-jersey-new-york-among-top-states-with-unfunded-liabilities-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-jersey-new-york-among-top-states-with-unfunded-liabilities-report\/","title":{"rendered":"NJ, NY have high unfunded liabilities: Report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-jersey-new-york-among-top-states-with-unfunded-liabilities-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2165801&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>New Jersey Tops the List for Unfunded Post-Employment Benefits<\/h2>\n<p>A recent report from the American Legislative Exchange Council\u2019s Center for State\u2064 Fiscal Reform reveals that New Jersey has the \u2064largest unfunded liability for post-employment\u200c benefits,\u200b excluding pensions, compared to any other\u200c state. The report highlights the nationwide increase in unfunded\u2063 liabilities, \u2063reaching a staggering $1.14 trillion in 2022, averaging $3,000 for\u2064 every \u2062American.<\/p>\n<h3>New Jersey&#8217;s \u2063Alarming Numbers<\/h3>\n<p>According to\u200b the report, New Jersey ranks at the bottom with a whopping $175 billion in unfunded other post-employment\u2063 benefit (OPEB) plans for 2022. This translates \u200dto a per capita liability\u2062 of\u200d $19,691.65. \u2064Not far behind is New York, with over $133 \u2064billion\u2064 in OPEB \u200bliabilities and a per capita liability of $6,847.42 per resident.<\/p>\n<h3>Delaware&#8217;s Struggle<\/h3>\n<p>Delaware also faces significant challenges, with \u200cmore \u200cthan $11.7\u2062 billion in liabilities. Due \u200bto its smaller population, the per capita liability \u2063stands at an outsized $12,048.16 per resident.<\/p>\n<h3>The Urgent Need \u200bfor Policy Reforms<\/h3>\n<p>Jonathan Williams, ALEC&#8217;s \u200dchief economist and executive vice president of policy, emphasizes the \u2062burden on\u2063 taxpayers\u2063 and the \u200dneed for\u200d significant policy reforms. \u200dIntroducing various defined contribution options for new \u2063employees can help fulfill commitments to both public employees and taxpayers,\u2062 ensuring\u200c financial sustainability.<\/p>\n<h3>Understanding OPEB<\/h3>\n<p>ALEC defines OPEB as all benefits retired public employees are eligible to receive \u200cupon \u200dretirement, excluding\u200d pensions. This \u200bincludes health insurance, life insurance, Medicare Supplement Insurance, and \u200bother forms of\u200d compensation.<\/p>\n<h3>Successful Reforms and Funding Challenges<\/h3>\n<p>The report highlights Nebraska, South\u2063 Dakota, Indiana, and North Carolina as states that have successfully \u200dreformed their \u2064OPEB plans while protecting \u200dtaxpayers. Overall, OPEB plans \u200bhave worse funding ratios than\u2062 state pension plans, \u2063with an average funding\u2063 ratio of \u200donly 13.46 percent. This lack\u200b of pre-funded assets allows\u200b liabilities to grow rapidly each year.<\/p>\n<h3>The Impact on Participants and Taxpayers<\/h3>\n<p>A poorly-funded benefits system \u2064puts a strain on both participants and taxpayers. It requires \u200chigher annual contributions from taxpayers, \u2064diverting funds \u2062from other important priorities. \u2063By addressing the trillion-dollar \u2062OPEB problem now, state leaders can fulfill\u2064 their promises and protect taxpayers from excessive debt.<\/p>\n<p> <\/p>\n<h2> Why has\u200b New Jersey&#8217;s unfunded liability for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elected-county-auditor-controllers-behaving-badly\/\" title=\"Misbehaving Elected County Auditor-Controllers\">post-employment benefits<\/a> more than doubled in the past decade?<\/h2>\n<p><span>  8.5\u2064 billion in unfunded post-employment benefits. This includes healthcare benefits for retired state employees, such as medical, \u2062dental, and vision coverage. The report points out that New Jersey&#8217;s obligation for \u200cthese benefits outweighs its ability to pay, creating a significant financial burden for the state.<\/p>\n<p>Furthermore, \u2062the report \u200cunderscores how New Jersey&#8217;s unfunded post-employment benefits have been growing at an alarming rate.\u2064 In the past decade \u2062alone, the unfunded liability \u2062has more \u200cthan doubled, increasing by $4.2 billion.\u200c This drastic increase\u2062 can\u2062 be attributed to various factors, including inadequate funding, rising healthcare costs, and an aging population.<\/p>\n<h3>Implications for New Jersey<\/h3>\n<p>The staggering amount of unfunded post-employment benefits in New Jersey has serious \u200dimplications not only for the state\u200b but also for its\u200c residents. The \u200creport emphasizes that\u200d the burden of\u2062 these liabilities ultimately falls on\u2063 taxpayers. As the unfunded liability continues to grow, the state will\u2064 be forced to allocate a \u200dlarger \u2062portion of its budget towards these benefits,\u200c leaving fewer funds available for other crucial public services.<\/p>\n<p>Moreover,\u2064 the report suggests that the mounting \u200dunfunded liability \u200dfor post-employment benefits could lead to credit downgrades for New Jersey. This could have a detrimental impact on the state&#8217;s \u200cability to borrow \u200cmoney\u2062 and fund essential projects. It could also result in higher borrowing costs, which\u2063 would \u2064further \u2062strain\u2063 the state&#8217;s already\u2064 precarious financial situation.<\/p>\n<h3>The\u200d Need for Remedial Actions<\/h3>\n<p>The report underscores the urgent need for New Jersey to\u200c address\u2063 its unfunded post-employment benefits crisis. Without prompt\u200d action, the burden on taxpayers will only increase, potentially leading to higher\u200c taxes or reduced \u200bpublic services. Moreover, the state&#8217;s financial \u200cstability will be at risk, making\u2062 it even more challenging\u200d to attract businesses and stimulate \u2063economic growth.<\/p>\n<p>Several solutions can be\u2062 considered to tackle this issue. One option is to implement reforms that reduce the cost of post-employment \u200bbenefits, such as renegotiating \u2064healthcare contracts or increasing employee contributions. Additionally,\u2063 the state could explore\u2062 alternative funding \u200dmechanisms, such as establishing trust funds or seeking federal\u200b assistance.<\/p>\n<p>It is crucial for\u200d New Jersey policymakers to prioritize this issue and develop a comprehensive plan\u200d to address the\u200c unfunded post-employment benefits problem. By doing so, they can not only alleviate\u2063 the burden on taxpayers but also ensure the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/we-got-our-hopes-up-american-families-adjust-to-life-without-the-expanded-child-tax-credit\/\" title=\"\u2018We Got Our Hopes Up\u2019: American Families Adjust To Life Without The Expanded Child Tax Credit\">long-term financial stability<\/a> of the state. Furthermore, it will demonstrate a commitment to responsible fiscal management and \u2064strengthen New Jersey&#8217;s position \u2064as an attractive place to live and do business.<\/p>\n<h3>A National Crisis<\/h3>\n<p>While New Jersey may top the list for \u200dunfunded post-employment benefits, it is important \u2064to recognize that \u2063this issue is not unique to the state. The report highlights\u2063 the nationwide crisis of unfunded liabilities, which \u200drepresents a significant challenge for \u200dthe entire country.<\/p>\n<p>Addressing \u2064this crisis requires\u200d collaboration between state \u200dand federal governments, as well \u2063as innovative thinking and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kamala-hires-advisers-to-polish-her-image-reports\/\" title=\"Kamala Hires Advisers To Polish Her Image: Reports\">long-term planning<\/a>. By taking decisive \u200caction now, we\u2064 can mitigate the \u2064impact of these\u2064 liabilities \u2063and ensure a more\u200d secure financial future for\u2063 all Americans.<\/p>\n<h3>In Conclusion<\/h3>\n<p>New Jersey&#8217;s ranking as the state\u2062 with\u2062 the largest unfunded liability for post-employment benefits underscores the urgent need for action. The growing burden on taxpayers and the\u200d potential consequences for the state&#8217;s\u2063 financial stability cannot be ignored.<\/p>\n<p>It is imperative for\u2062 New Jersey policymakers to prioritize this issue\u2064 and devise effective solutions. By doing so,\u2064 they can\u2064 protect the interests of taxpayers, maintain crucial\u200c public services, and safeguard the state&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-will-joe-bidens-tax-hike-impact-average-americans\/\" title=\"How Will Joe Biden\u2019s Tax Hike Impact Average Americans?\">long-term economic<\/a> well-being. Additionally, addressing \u2062the nationwide crisis \u200cof unfunded liabilities requires a \u2063collective effort \u2063and\u200b a commitment to \u2062prudent \u2063fiscal\u2064 management from \u200dboth state and federal governments.<\/p>\n<p>Only by\u200d addressing these\u200b challenges head-on can we secure a brighter future for \u2062New Jersey and the entire nation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Per person. New Jersey tops the list with the highest unfunded liability for post-employment benefits, surpassing all other states. The report, by the American Legislative Exchange Council&#8217;s Center for State Fiscal Reform, reveals that the nationwide total for unfunded post-employment liabilities has reached $1.14 trillion in 2022, with an average of $3,000 per person<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2165801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2165801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2165801"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2165801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2165801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2165801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2165801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}