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Fitch says New Jersey pension contribution cuts are "troubling"
May 21, 2014 / 8:05 PM / 3 years ago

Fitch says New Jersey pension contribution cuts are "troubling"

May 21 (Reuters) - New Jersey Governor Chris Christie’s plan to slash payments into the state’s public pension system is a form of deficit financing and a reversion to past troubling practices, Fitch Ratings said on Wednesday.

After April revenues came in far short of expectations, leaving the state with an $875 million shortfall with six weeks left in this fiscal year, Christie said on Tuesday that he would cut New Jersey’s pension contributions by nearly 60 percent, or $2.3 billion, over this and next fiscal year.

“This once again displays an inability to deliver a recurring solution to the state’s budgetary imbalance and further delays action to align the state’s revenues and expenditures,” Fitch analysts said. (Reporting by Hilary Russ)

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