New Jersey Governor Phil Murphy (D) signed a record $46.4 billion budget with a biggest-ever pension payment, marking the first time in more than a quarter-century that the state will make the required minimum contribution to its underfunded retirement system, Bloomberg News reported. The spending plan for the fiscal year that starts on July 1 is 24% higher the first one he signed in 2018. It uses an influx of tax revenue to cover free in-state public college tuition for low-income students, rebates for families with at least one child, $750 million in rental and utility assistance and other initiatives that will appeal to low- and middle-income voters in the November election for governor and all 120 legislative seats. New Jersey’s record-high $6.9 billion pension payment, $500 million more than recommended in actuarial reports, is a noteworthy step for a state whose credit rating is second-worst among U.S. state governments, behind Illinois, because of its massive debt to the retirement system. New Jersey hasn’t made a full payment since 1996.
