Tuesday, January 13, 2009

Think you have it bad? Try living in New Jersey!


Think New Jersey and you think of the Sopranos, ingrained government corruption, or the wonderful aromas wafting off the northern end of the NJ Turnpike.

Our Governor Jon Corzine, in what I can only assume is an effort to show that not all Democrats are hooking up with other men for anonymous sex in Turnpike rest stops decided he would instead hook up with the woman who happens to be the head of the Communications Workers of America local that represents the overwhelming majority of state workers.
Now while the New York Times and legions of leftards will insist the economy has been in a recession since January 2001 the economic downturn did not begin until November 2007. And no one should dispute that by June 2008 when foreclosures, oil prices and grain futures were peaking we were facing the beginning of a period of dire economic straights.
The governor himself was under fire by people from all sides of the political spectrum for his plans to cut spending and raises fees (taxes) to try to offset the state's mounting deficit of debt load, out of control spending and devaluating pension plan funds... which were reflecting the declines in the market and the situation was exacerbated by being underfunded in the first place.
In the midst of this firestorm of criticism that Corzine found himself in he managed to reach an agreement with his girlfriend for state worker contracts. In the heart of this economic correction, which by July 2008 economists redefined the word recession so it could be applied, Corzine agreed to give state workers annual contract raises averaging 3.25 percent annually, or 13% over that 4 year period.
And if giving away 13% over four years at the beginning of an period of economic uncertainty that saw the company where he was formerly Chairman and CEO go from being the last investment bank in America to a traditional bank holding company wasn't bad enough he wasn't through lining the pockets of the union.
You see these contract raises occur on July 1st of each year, the beginning of the state budget year, and are independent of the annual January 1st raises for that same time period of 4% each for every worker who is not already at the maximum salary for their range.
So a state worker who is in the bottom 50% of their pay range will get, automatically, seven raises in the course of this 4 year contract.

July 2008: 3%
January 2009: 4%
July 2009: 3.25%
January 2010: 4%
July 2010: 3.25%
January 2011: 4%
July 2011: 3.5%
So the bulk of state workers will see their pay raise by 25% in the next 48 months.
While Jon Corzine had the audacity to blame the state's fiscal woes on his predecessors Christie Whitman and James McGreevey he was in bed (literally) with the union on driving the state even further into debt. Guaranteeing 25% raises while the country was in the midst of economic uncertainty should be a criminal act... at the very least impeachable.

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