TRENTON — New Jersey lawmakers tonight voted to enact a sweeping plan to cut public worker benefits after a long day of high-pitched political drama in the streets of Trenton and behind closed doors.

Union members chanted outside the Statehouse and in the Assembly balcony, and dissident Democrats tried to stall with amendments and technicalities. Although they successfully convinced top lawmakers to remove a controversial provision restricting public workers’ access to out-of-state medical care, they failed to halt a historic defeat for New Jersey’s powerful unions and a political victory for Republican Gov. Chris Christie.

"Together, we’re showing New Jersey is serious about providing long-term fiscal stability for our children and grandchildren," Christie said in a statement released after the vote. "We are putting the people first and daring to touch the third rail of politics in order to bring reform to an unsustainable system."

Christie and Republicans banded together with Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Sheila Oliver (D-Essex) to advance the bill despite opposition from the majority of Democrats who control the Legislature.

More than 8,500 protesters, the most this year, poured into Trenton this morning with signs, speeches and their trademark inflatable rat. But most had dispersed by the time Democrats emerged from their hours-long caucus meetings where they debated the bill’s details and a separate budget proposal. The Assembly convened for a vote at about 6:15 p.m., more than five hours late, and lawmakers delivered speech after speech on the bill for nearly three hours.

MORE FROM TRENTON:



• N.J. Democrats announce new budget, including millionaires' tax, increased aid for schools, seniors

• N.J. Assembly rejects plan to transfer NJN management to N.Y.-based WNET

• Protestors create spectacle at N.J. Statehouse throughout pension, benefits overhaul vote

• NJ unions rally in Trenton, Assembly votes on pension and health benefit overhaul - live coverage

"We cannot afford to put off these needed reforms for another year," said Assemblyman Lou Greenwald (D-Camden), a sponsor. "Kicking the can down the road and doing nothing will only require more sacrifice from taxpayers and public workers in the future."

The bill passed the Assembly 46-32 and will be sent to Christie’s desk for his signature. Fourteen Democrats voted for the bill, while 32 opposed it. After the vote, protesters in the balcony shouted "Shame on you!"

Unions have blasted the bill for ending their ability to collectively bargain their medical benefits. Health care plans for 500,000 public workers would be set by a new state panel comprised of union workers and state managers, rather than at the negotiating table. A sunset provision would allow unions to resume collective bargaining after increased health care contributions are phased in over four years.

In addition, police officers, firefighters, teachers and rank-and-file public workers would all pay more for their pensions and health benefits.

Supporters of the bill say the state needs to cut costs because the pension and health systems are underfunded by more than $120 billion total. The Christie administration estimated the bill would save $3 billion in health benefits over the next 10 years and $120 billion in pension costs over 30 years. Much of the pension savings are from the controversial elimination of the cost-of-living adjustments for retirees, which unions have threatened to challenge in court.

Sweeney, who has urged cuts to public worker benefits, said the legislation would help save the state’s retirement system.

"Nobody is talking about how we protected 800,000 people’s pensions," he said today. "I don’t apologize for that."

Over the years, lawmakers and local leaders from both parties have offered increased benefits to public employees, often in exchange for political support. But even as benefits improved, the state and municipalities failed to meet its financial obligations. Since 2004, the state has not made $15.11 billion in required payments to the pension funds, while the municipalities have skipped $1.9 billion. Public employees, meanwhile, have fully paid their required contributions.

As a result, the state has a $54 billion shortfall in its pension system, among the highest in the nation. New Jersey’s health benefit system is in even worse shape than the pension fund and is the most poorly funded in the nation at $66.8 billion in the hole, according to the Pew Center on the States.

By Chris Megerian and Jarrett Renshaw/Statehouse Bureau

Christopher Baxter, Megan DeMarco, Matt Friedman and Ginger Gibson and Salvador Rizzo contributed to this report.

Previous Coverage:

• N.J. public workers to stage large protest over pension and health insurance reform

• Effort to cut N.J. public worker benefits advances despite 'revolutionary' opposition

• Health and pension overhaul clears N.J. Assembly Budget Committee

• N.J. Senate approves pension, health care reform bill