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NJ's Largest Teachers Union Supports Sweeney's Proposal To Push For Federal Loans To Help State Pension Plans

By David Madden

TRENTON, NJ (CBS) -- A proposal from New Jersey State Senate President Steve Sweeney to solicit federal loans to help states deal with underfunded pension plans will soon make the rounds with legislators from across the country. New Jersey's largest teachers union believes it should get serious consideration.

Sweeney has insisted his proposed trillion dollar fund for troubled states to tap into is not a bailout. That money gets paid back, with minimal interest, to Uncle Sam.

New Jersey Education Association President Wendell Steinhauer, who admittedly has a large stake in how New Jersey's $51 billion shortfall is addressed, likes Sweeney's idea.

"I think the Senate President is thinking out of the box here. As a math teacher, I listened to his numbers and, just roughly, they work out for me."

Whether they work out for other states, and particularly for the feds, is another thing.

Steinhauer admits it'll be a tough sell in DC, but then again, legislators in other troubled states might feel pressure from back home to address the issue.

 

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