Harry J. Wilson, a Republican running for state comptroller, argues that rosy numbers released annually by Albany are an illusion.
Experts say that Republican and Democratic lawmakers contributed to the problem by refusing for years to put state money into pension funds as they should have.
Federal regulators accused New Jersey of securities fraud for claiming it was funding public workers’ pensions when it was not.
The state had been accused of failing to inform bond investors that it was underfunding its largest pension plans.
Hank Morris, who had advised a former state comptroller, still faces many counts related to what prosecutors said was a scheme to defraud the state pension fund.
The state is trying to recoup pension fund losses that occurred when the bank took over Merrill Lynch at the beginning of the financial crisis.
The New York attorney general released a preliminary report based on overtime and pensions for workers in 50 government agencies.
Republicans have often railed against public employees’ pay and benefits, but now friends of labor are joining in.
Critics denounced the plan to borrow nearly $6 billion from a pension fund to make payments to the same fund as a shell game and an effort to avoid making difficult decisions.