a lot of these teachers quit in early 50s. 55 with full pension. 60 is nonsense. you have open competition, accountability. it takes care of your solution is putting more teachers into the pension fund which are breaking the states. i don t think it will increase the pension liability. five fewer years of credited service. next week they have to decide whether they want to give $10,000 to get teachers out. david: don t we always say that government needs to learn from the practices of private business and private business does buy-outs all the time. yes. and you are right. look, the school districts are used to unlimited budgets. in wisconsin they are spending their spending per pupil has doubled. test scores went down. they must have limited
unfunded pension liability which connecticut has and that s an new which has fired people up all over the country, the lavish pension by state union workers. your budget does not address that. guest: it does, actually. i am sorry you didn t know that, but part of our budget proposal is to engage in a process by which we recover some of those monies that would otherwise have to go to fund those kinds of pensions. my predecessor who happened to have been a republican, negotiated a deal two years ago which really only delayed what really needed to transpire. in essence, she won an agreement from the unions that said the state wouldn t deposit its share of the money into the fund for two years. i m looking for something that is quite frankly, extreme in comparison. what we need to do is have real discussions about our relationship. stuart: but you have a significant tax increase that s
spread around. do you think that the taxpayers of cut will be happy the increased revenue goes to pay the pensions? you have an unfunded pension liability of $50 billion in connecticut. are they going do be happy about this? guest: and you are missing the point. in our proposal, we are asking for $1 billion worth of in essence, give backs. we are having discussions about that so i think, and, again, look at what we are doing, $800 million worth of budget cuts, $1 billion worth of give backs, and, yes, we are proposing to raise some taxes across the board so that the, there is a legal of shared sacrifice. will people be happy about it? absolutely not. not no one is happy about the cuts. no one is happy about the give back, and no one is happy about the taxes. but, i think the people ultimately of connecticut want a
unwillingness to join shared sacrifice. chris: so what do you do? let s take a look. at the financial situation that you face in new jersey. have you unfunded pension liabilities, state workers, supposedly a $54 billion. some say it s triple that. new jersey ranks number 48 among states and business tax climates. we just saw illinois raise personal income taxes by 67% to raise corporate taxes by 45%. you re not going do that. how do you get out of the crunch? the terrible debt you re in? last year we cut spend big 9% in a year cutting every department of state government. we were, before i became governor, 50th engineer business tax. now 48th. and i m not taking out an ad but make prog gres. and unfunded pension liability there is a proposal saying raise retirement age, and
50th we re now 48 but we re making progress in the right direction. pension liability, i said this, raise the retirement age and eliminate colas for future employees, reduce them by 9%, an increased employee contribution. those are real hard reforms. it will take that $54 billion and in 30 years it will cut in it half. gregg: he says illinois businesses, come here on to new jersey. brenda butner, anchor of bulls and bears. all right. as everybody knows illinois is home to and everybody should know intimately the laffer curve. let s put it up on the screen. a familiar scene, ferris wasn t in class but based on it to explain the laffer curve.