Joisey Poifect?

28 October 2010 By Martin Hutchinson

Against many odds and strong opposition Chris Christie balanced this year s budget. He even killed an overpriced, if worthy, tunnel project. But pension cuts and budget obstacles still loom. His budgetary governance model shows promise, but needs further testing.

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New Jersey Governor Chris Christie pulled state funding Oct. 27 from the $8.7 billion ARC tunnel project between New Jersey and Manhattan, the largest U.S. public works project under construction. New Jersey's share of the cost would have been $2.7 billion, plus cost overruns that could have taken the project's cost up to $14 billion, according to Christie administration estimates.

The Holland Tunnel, a fourlane road tunnel from New York to New Jersey opened by President Calvin Coolidge on Nov. 13, 1927, had a construction cost of $48 million, equivalent to $606 million in 2010 dollars.

Under Governor Christie, New Jersey closed a budget gap of $10.7 billion in its 201011 finances, achieved in part by not making a $3.1 billion payment to the state pension fund. The pension fund is estimated to have an actuarial deficit of $174 billion according to an American Enterprise Institute study.

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