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$35 million would not have even come close! That's saying that a 1% increase in the state contribution for a couple of years is all it required. Or, if you had put the entire burden on the employee side, it would have meant increasing the pension deduction from 9% to 9.25% for seven years. Is it even plausible that if the problem were that easy to solve, that everyone would have fought so hard over it? That's nuts!
Even if one kept the 8.25% assumed return figure like the union wanted, projecting the gains on that extra $35M out 10 or 20 years doesn't even come close to filling in the out-year gap.
If that's what Nee told you, he was wrong -- the math is pretty clear when you look at the pension balance sheet.
That was not the only thing that needed to be done. She presented a 9 billion dollar shortfall that all of a sudden was shortened to 5.4 billion within 2 years of not paying colas. What should that tell you? 1.That 35 million even at a bit over 7% would amount to 70 million in 7 years. 2. What the pension fund needed most was a "kick start" that this infusion would begin. 3. If a hybrid plan was not developed and instead a plan that would allow workers to put in as much as 11% of their wages (at their own discretion) into the same pension fund, colas could have been given out at 7 years instead of 18. Raimondo's plan took away the full development of a rescued pension plan and seeded 401K's instead. 4. Her actuarial figures were taken just after the stock market crashed in 2009. 5. No contingencies calculating for an extended reamortization period with a reduced life expectancy . 7. No examples or "bars" demonstrating when and how the pension coffers were funded at 70%. This was not a pension problem, this was an overspending problem.
If pensions were capped at $75-80,000 in colas, that would relieve the pension of paying continuous cola build and not have to cope with the 150,000 to 200,000 dollar pensions currently on the books.
Do not forget, she used 88 years old as the survival age based on nothing more than the hypothetical extension of human longevity and not the average longevity of Rhode Islanders.
Almost everyone in the legislature bit hook , line and sinker at her presentation.
This plan never developed but for one reason: no one wanted to take money from anything else that wasteful spending was developed for but it was perfectly all right to pilfer the pension money when spending was desired elsewhere. Even the suggested infusion of $232 million dollars from the state was negated by her.
It is never the "sheeple" who fight for anything. They simply acquiesce as that has been the modus operandi of this state. That to me is the part that is "nuts"
What I also find quite interesting is George Nee's support of her. Being president of the AFL-CIO, his main goal was to protect the pensions and colas of his municipal workers. No skin on their end. Mission accomplished. "Raimondo for President!"
The state pensions have been protected. Just not in the manner preferred by the unions. Unfortunately, there is no Gina Raimondo in Providence's future.
The state pensions have been protected. Just not in the manner preferred by the unions. Unfortunately, there is no Gina Raimondo in Providence's future.
Good. Maybe someone else has the cojones to instead play with figures, look square in the eye of the corruption,favoritism and abuse and say "sorry, this crap is not going to continue" Ha! Raimondo protects what is in her own self interest otherwise M.e.r.s would have also been included in the pension fix but she did need some union backing didn't she. To me, she is just another political maggot that has received misplaced accolades from others who also have an axe to grind.
Tell me when the state pension fund was protected. It's considered part of the "general fund" by many. How did Bruce Sundlun rifle 325 million dollars from it to cover the RISDIC fiasco? Leaving that money in there to compound interest for the 25 years since it was stolen would have amounted to over 3 billion dollars today. Also, all surplus money the state gets from the likes of lawsuits, secondary grants and any other residual revenue sources was supposed to go into the pension fund to help shore it up. That 's not happening either. What great protection.
It doesn't matter what I post here. People bent on being on her side will only selectively believe what suits their cause. She is an utter charlatan to myself and others who are aware of back ground information. Obama was supposed to be the great difference maker also. How'd that work out for ya?
That's WAY above poverty. Poverty level for one person is 11.670. I can't imagine living on that, that's for sure. But 28,000 is far, far above the poverty line. It's the poverty line for a family of 5.
If I owned my house free and clear, which I will as a retired person, it wouldn't be a problem to live on 28,000. That would more than cover heat, electric and groceries. And that's only not even counting my husband's income. It's certainly better than what I'm going to get from social security.
It's ironic, considering that you consider too many people are on public assistance, yet consider the median salary to be poverty. I would have expected you to err in the opposite direction and believe the poverty level is lower.
Anyway, the point isn't whether or not you consider $28,000 to be enough money for you to live on. The points is that $28,000 is a fairly average salary and plenty of people in RI are living on it. It's well over minimum wage, and plenty of people are making minimum wage.
I seem to recall you're against raising minimum wage, believing it sufficient, no?
Median salary is misleading, so is the federally defined "poverty line". The point is that 28,000 (and don't forget that gets taxed as well) just barely covers basic necessities. Even if one owns their home outright (which fewer and fewer retirees are now); when you pile on property tax, car tax, auto maintenance and insurance, health care costs, home repairs, gifts for the grandkids, yes that is one paycheck away from a disaster. And God forbid one wants a vacation or new car or or anything. Remember that those in a municipal pension plan typically do not receive social security nor receive matching on a 401K type plan.
My point is, that I just don't think it's overgenerous to those who sacrificed the higher salary they would have earned in the private sector. Those earing the $28,000 pension are typically not coat holders and other political hacks. They are those teaching our children, protecting life and property and keeping our streets safe. What's bankrupting us are those at the higher end, and the double and triple dippers.
And I fail to understand your other assertions, such as how it's "ironic" that I think too many are on the dole. That in fact makes my point stronger, in that if one with a couple of kids takes full advantage of all benefits available; then they can earn FAR more than the RI median salary OR the pensions of those who'd dedicated their lives to serving the public (as opposed to the world "owing them something"). Do you think that's OK?
And I never said the minimum wage was "sufficient" for raising a family or any real subsistence (at least at 40 hours per week). What I probably said was, that those jobs were never intended for a full working adult. They are for students, mothers, 2nd jobs, disabled people, and other temporary situations. Those jobs just aren't careers, or if they are then the person put himself in that situation. The rest of us shouldn't have to pay that cost in higher price of goods, fewer opportunities for kids, and more small businesses going under.
> protecting life and property and keeping our streets safe
We do spend too much money on our fire and police services here, especially fire. RI overall spends something like 2.5x per capita what most states do -- highest in the nation, and many of the other high per-capita states are Western states with small populations but major forest and wildfire problems. RI doesn't do particularly better than the average state on things like deaths from house fires either. Cranston, for example, spends 4x as much as a typical city of its size on its fire dept, or looked at another way, Cranston spends almost 100% more on its fire dept than its police dept. Most cities in the US spend more on police than on fire, and from what I've seen in the news, it sure seems like Cranston needs more cops more than additional fire stations. More broadly Cranston and all the other towns have less to spend on roads, infrastructure, economic development, parks, and so on because they so dramatically overemphasize police and fire.
> protecting life and property and keeping our streets safe
We do spend too much money on our fire and police services here, especially fire. RI overall spends something like 2.5x per capita what most states do -- highest in the nation, and many of the other high per-capita states are Western states with small populations but major forest and wildfire problems. RI doesn't do particularly better than the average state on things like deaths from house fires either. Cranston, for example, spends 4x as much as a typical city of its size on its fire dept, or looked at another way, Cranston spends almost 100% more on its fire dept than its police dept. Most cities in the US spend more on police than on fire, and from what I've seen in the news, it sure seems like Cranston needs more cops more than additional fire stations. More broadly Cranston and all the other towns have less to spend on roads, infrastructure, economic development, parks, and so on because they so dramatically overemphasize police and fire.
This is just one reason why we need small community as well as large reform in this state. It's often been pointed out on this forum about the waste involved with running 39 fiefdoms. Police and fire are notorious for going out on early disability costing permanent money.
Ted Nesi just said this about Fung's platform. "In Fung’s case, the discussion surrounded his proposed $200 million in tax cuts – which no longer actually total $200 million due to recent changes made by the General Assembly, though he continues to use the $200 million number. Even if you knock the headline figure down to $150 million, the plan would balloon next year’s budget deficit to $323 million under current estimates – a huge gap to close." Interesting.
Ted Nesi just said this about Fung's platform. "In Fung’s case, the discussion surrounded his proposed $200 million in tax cuts – which no longer actually total $200 million due to recent changes made by the General Assembly, though he continues to use the $200 million number. Even if you knock the headline figure down to $150 million, the plan would balloon next year’s budget deficit to $323 million under current estimates – a huge gap to close." Interesting.
Fung's campaign is not being run well imo. What is not being said is: over how long a period are these cuts taking place? 2. Where are you eliminating waste to garner reduced taxes? 3. If waste is being eliminated that helped create the shortfall, will this not help pay for the shortfall eventually?
The 800 lb gorilla in the room not being talked about is the infusion of illegal aliens in this state. It seemed the 120 or so "children" being absorbed by Chaffee recently was simply glossed over by the media. How much is this costing us to be a "sanctuary" state?
It certainly would have been cheaper to put these people on a plane and fly them back to Honduras or wherever as the Nebraska governor did who was not so friendly with Obama.
Raimondi not only accepts these people with open arms, she wants to give them drivers licensees....nice . Abetting criminal activity.
The liberal agenda does not care about the welfare of US citizens, only future votes...
Exactly right!!! Let's throw everything that made this country great into the sewers. As long as we keep getting votes "what difference does it make"
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