Q. What did the governor actually do and what didn’t he do? A. Gov. Chris Christie said "a state of fiscal emergency exists," but he did not officially declare a "state of emergency," which would allow him to breach contracts and assume the type of extraordinary power usually reserved for natural or man-made disasters like hurricanes or terror attacks....for full Q&A, click here on

FAQs on N.J.'s state of fiscal emergency declaration by Gov. Christie

By Statehouse Bureau Staff

February 11, 2010, 6:38PM

Q. What did the governor actually do and what didn’t he do?
A. Gov. Chris Christie said "a state of fiscal emergency exists," but he did not officially declare a "state of emergency," which would allow him to breach contracts and assume the type of extraordinary power usually reserved for natural or man-made disasters like hurricanes or terror attacks.

Q. What are the legalities?
A. Christie invoked a state law that allows him and the state treasurer to "impound" money already appropriated by the Legislature to keep the budget balanced.

Q. Is there a question about his authority to do what he did?
A. Yes. Democrats contend his power to impound state funds is limited and that the governor is trying to circumvent the budget process. The governor’s order is expected to be appealed to state courts.

Q: Who are the winners?
A. Christie, for starters. The governor is comfortable making decisions that may be unpopular, and he is not afraid of taking on giant unions like the New Jersey Education Association and the Communications Workers of America. Also on the winning side are Republican legislators who view this as the first step toward their goals. New Jersey residents would be winners if Christie’s cuts work without generating higher property taxes.

Q. Who are the losers?
A. Public employee labor unions; municipal and school board officials; commuters; and environmental organizations. Christie could be as well if his plan backfires into higher property taxes and an unworkable relationship with the Legislature, which is controlled by Democrats. Property tax payers also could find themselves on the losing side.

Q. Did Christie touch pensions?
A. Not directly. Christie withheld a planned $100 million payment to the pension fund. Although $100 million seems like a large sum, it represents 4 percent of the recommended annual payment to keep the fund healthy, according to Moody’s Investors Service. Christie also said he wanted an even stronger package of pension-reform bills than those in the Legislature. Democratic and Republican lawmakers have been working on changes that would require current and future employees to contribute at least 1.5 percent to health care costs and make pension benefits for future hires less generous.

Q: Does this lay the groundwork for shifting the pain to the local level — school districts, municipalities — and the worse budget to come next year?
A: Christie is betting the way to cut expenses is to eliminate state mandates and let municipalities make the tough choices. Polling data show there’s a segment of the population that wants spending cut, but when put into practice that can backfire if, for example, residents who don’t want their schools regionalized have to consider that option. Pushing decisions onto local districts may not solve the problem, and how they will respond to the budget cuts will vary from town to town and district to district.

Sources: Staff reports; New Jersey Chapter Sierra Club; New Jersey Environmental Federation; Brigid Harrison, political science professor at Montclair State University