Come November, without explaining the seriousness of the issue, the New Jersey Legislature will put a proposed constitutional amendment on the ballot that would provide consistent state payments each year to the $79 billion New Jersey Pension Fund. The best advice is to sell your home and get out now. If this goes through, property taxes will explode as they did in Illinois and the value of your home will drop. Sell and rent, but do not own unless you live in a state like Florida or Texas.
Seven states have specific clauses in their constitutions that protect public employee pensions: Alaska, Arizona, Hawaii, Illinois, Louisiana, Michigan, and New York. We have already seen Illinois on the brink of bankruptcy. Illinois will be completely devastated. There is no hope whatsoever, for changing the Constitution at this point in the game would only apply prospectively. That means these states will see an explosion in taxes over the next four years and they may simply be forced into bankruptcy if they are unable to meet bond payments for pensions come first.