N.J. Outlook Fails to Improve as Pension Hit Looms: Muni Credit

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Governor Chris Christie, who says rising pension and debt payments threaten to crowd out spending on services such as public safety, risks a ratings cut as New Jersey debates how to tackle unfunded retirement liabilities.

Christie in a Feb. 3 radio interview said he will “work with actuaries to make the appropriate payment” on pensions for next fiscal year, though he said the state can’t afford both the $2.4 billion bill and funding for health care, education and public safety. As the second-term Republican prepares to introduce his next spending plan on Feb. 25, he must contend with revenue that is trailing targets.