TRENTON – Sen. Steven Oroho, (R-24), Sparta sees some hope for New Jersey’s fiscal house slowly being brought into order based on data released today by the Office of Public Finance.
Although the report showed that as of June 30, 2010, there was $25.6 billion in outstanding debt in unfunded actuarial accrued liability for state-administered retirement systems, he said it would have been $12 billion worse if not for the reforms in the state’s pension and benefit systems that have been ongoing under this administration.
And he hopes this eventually will lead in the long term to a credit rating upgrade by the ratings agencies.
The report also shows that there was a net pension obligation of $10.8 billion, what actuaries said New Jersey should have paid into the system over past years, Oroho said.
And although the report still shows a heavy debt load, the rate of increase is slowing under pension/benefit reform, he said. He pointed to the state’s commitment to pay one-seventh of its obligation, which increases each year until it meets full funding obligations in 2019.