Sweeney Discusses Importance of Confronting Fiscal Fault Lines Before They Become Worse

Stresses Need for Fiscal Reforms at ‘Path to Progress’ at Rowan University Policy Forum

Glassboro – Speaking at a policy forum last night, Senate President Steve Sweeney talked about the need to confront the state’s mounting fiscal problems and warned that New Jersey won’t be able to make critical investments in education, transportation, higher education and social services unless it enacts major structural reforms to address the looming budget crisis fueled by runaway pension and benefit costs.

At the public forum, held at Rowan University in Glassboro, Senator Sweeney warned that New Jersey is facing a dire fiscal crisis and laid out a series of solutions developed by the bipartisan Economic and Fiscal Policy Workgroup of economists, academics and fiscal policy experts to address the problem.

The session was hosted by Dr. Ali Houshmand, the President of Rowan University, and Ben Dworkin, the Director of the Rowan Institute for Public Policy & Citizenship Office.

“We have to be willing to confront the reality of the fiscal problems we face and realize the need for structural reforms,” said Senator Sweeney (D-Gloucester/Salem/Cumberland). “If we don’t fix the built-in problems we will be facing a multi-billion-dollar deficit in the years ahead. That will cripple our ability to invest in future priorities and address current needs, such as expanding preschool, investing in our universities, fully funding state aid to local school districts, or providing social services.”

“We need to make our state more affordable – not less affordable – for our hard-working middle-class families, for new college graduates and millennials deciding where they are going to live, and for senior citizens trying to decide whether they can afford to stay,” the Senate President said.

“We welcome the open discussion on these issues that are so important to the state’s future, including the role of higher education,” said. Dr.  Houshmand. “Rowan University is proud to participate in a public forum of relevance and consequence.”

Many of the recommendations in the group’s Path to Progress report could make New Jersey both more competitive and more affordable.

“There exists the potential for savings with initiatives, such as K-12 regionalization, increased use of shared services at both the county and municipal level, and shifting the cost of Extraordinary Special Education from the local to the state level,” said Senator Sweeney. “If there are recommendations that can lead to real property tax reform to ease the burden on New Jerseyans, it is a discussion that must take place.”

Senator Sweeney said the new hybrid pension system recommended by the Economic and Fiscal Policy Workgroup is not a new idea; 12 states, including Pennsylvania, Rhode Island and Ohio, have already adopted hybrid systems. The plan would fully preserve the existing pension system for teachers and state, county and municipal employees with five years of service.