New Jersey * Delaware
New York Pennsylvania
This represents NJ’s combined state and local funded ratio as of 6/30/2010
Source: NJ’s aggregate funded ratio as of 6/30/2010. Other states’ data from the Public Fund Survey– DE State Employees as of 6/30/09; CT State Employees Retirement System (ERS) as of 6/30/09; NY State & Local ERS as of 3/31/10; & PA State ERS as of 12/31/09. U.S. represents the aggregate average of the 127 state and local plans in the survey.
Skyrocketing medical costs are a burden on states. Medicaid expenses are growing because of high unemployment, and the end of temporary federal support for the Medicaid program will leave huge holes in many state medical care budgets.
Just as important for state and local budgets, costs are rising for employee and retiree medical benefits. The expense of meeting promises of support for health care is proving to be much larger than anticipated when the promises were first made because medical costs as a whole have risen so much, and because people are living longer and consuming more health care dollars. As the nation ages, this demand will grow at an even faster pace. Thus, the total medical bill for the nation and the states continues to rise steeply. State taxpayers across the nation are on the hook for a huge portion of the bills. To be sure, states across the nation are dealing with hard times and facing hard choices. New Jersey will not be alone in the need to take bold and controversial steps to address the problems brought on by the recession and lingering financial imbalances.