From a Q and A with Education Commissioner Bret Schundler at a Senate Hearing, courtesy of New Jersey Newsroom:

The thing holding up action [on collective bargaining, health benefit cost-sharing, and pension reform legislation] is fear. New Jersey’s public sector unions are powerful. The teachers union alone has dues income greater than the budgets of New Jersey’s Democratic and Republican parties combined. Public employee unions oppose the Governor’s proposals because the reforms would bring public sector compensation growth more in line with private sector compensation growth, instead of allowing it to rise 2 or 3 times as fast.