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This is not really a news flash but it appears the problem will be worse than expected and made worse by the size of the teacher and police salaries that are retiring. I cannot believe that they still allow inclusion of overtime in pensions.
Maybe I shouldn't worry since the "new" leadership of Cuomo, Skelos and Silver will take care of this.
"New York State taxpayers' contributions to the Teachers Retirement Fund could quadruple by 2016, perhaps rising to as high as $4.5 billion statewide, according to a new report released Tuesday by the Empire Center for New York State Policy, a conservative think tank"
"John Cardillo, a spokesman for the Teachers Retirement System, cautioned against projections beyond 2012. "Going out any further . . . is difficult," he said. "You can't predict the future."
Good ideas here. I'm glad both realize pensions are unsustainable in their current form.
Quote:
Maragos and Levy both suggested relying only on base salary, instead of overtime and additional compensation, to keep pensions lower.
The Empire Center said the state should consider wage freezes and other moves, while also shifting to a defined contribution plan similar to most 401(k) accounts, or hybrid plans that contain features of both.
Keep taxes from going up stratospherically higher than they already are?
They should immediately end the padding of retirements by teachers and cops..and this is coming from someone who stands to benefit a ton from my wife teaching night school or taking on a bunch of clubs in her last 3 years of work. It's nonsense what is going on. Burned out 30 year teachers are the last people who should be teaching night school and running clubs anyway.
Keep taxes from going up stratospherically higher than they already are?
They should immediately end the padding of retirements by teachers and cops..and this is coming from someone who stands to benefit a ton from my wife teaching night school or taking on a bunch of clubs in her last 3 years of work. It's nonsense what is going on. Burned out 30 year teachers are the last people who should be teaching night school and running clubs anyway.
I don't see what the logic was in negotiations that would allow an increase in pension above the base salary, that is just not allowed in most companies and the federal government for that matter. The local police, teachers, MTA , villages, towns, counties and Port Authority I just don't see how they will be able to pay for these increases when they come through the next few years.
Cuomo has his work cut out for him. I know its expensive to live in this area but when you have school superintendents and Port Authority Police making more than the governors in most of the stattes they may have gone to far.
By the way can NIFA take over NY State along with Nassau?
I don't see what the logic was in negotiations that would allow an increase in pension above the base salary, that is just not allowed in most companies and the federal government for that matter. The local police, teachers, MTA , villages, towns, counties and Port Authority I just don't see how they will be able to pay for these increases when they come through the next few years.
Cuomo has his work cut out for him. I know its expensive to live in this area but when you have school superintendents and Port Authority Police making more than the governors in most of the stattes they may have gone to far.
By the way can NIFA take over NY State along with Nassau?
Gov Patterson had a very candid and interesting take on this subject when he was on WFAN the other day. A politician being that honest was quite refreshing and, I think, illustrates the fact that everyone knows what the problems are they just are bogged down by red tape in order to stop it. He said, and I'm paraphrasing, that all of the large states in the US have dealt with the municipal pension and financing issues in different ways. New York taxed and taxed and taxed, California borrowed and taxed, Illinois just borrowed and assumed it would go away, yet all of the states have failed and will have problems with their pension plan in the next decade. He went on to say that the federal government will need to bail out these states.
The problem is that democratic systems are great for small change, but we are at the point where we need some serious wholesale changes. I think NY is pretty much out of tax options. We already pay the highest property taxes, state income taxes, energy taxes, gas taxes, and sales taxes. NY is out of taxing options. I was on a conference call the other day that talked about the fact that if the Bush tax cuts expire there will be people in NYC that will have a marginal tax rate over 50%. Capitalism won't work very well if you work more for the government then you do yourself.
Gov Patterson had a very candid and interesting take on this subject when he was on WFAN the other day. A politician being that honest was quite refreshing and, I think, illustrates the fact that everyone knows what the problems are they just are bogged down by red tape in order to stop it. He said, and I'm paraphrasing, that all of the large states in the US have dealt with the municipal pension and financing issues in different ways. New York taxed and taxed and taxed, California borrowed and taxed, Illinois just borrowed and assumed it would go away, yet all of the states have failed and will have problems with their pension plan in the next decade. He went on to say that the federal government will need to bail out these states.
The problem is that democratic systems are great for small change, but we are at the point where we need some serious wholesale changes. I think NY is pretty much out of tax options. We already pay the highest property taxes, state income taxes, energy taxes, gas taxes, and sales taxes. NY is out of taxing options. I was on a conference call the other day that talked about the fact that if the Bush tax cuts expire there will be people in NYC that will have a marginal tax rate over 50%. Capitalism won't work very well if you work more for the government then you do yourself.
I agree with your 1st paragraph - kicking the can is kicking the can... You can't put off the inevitable forever and they've already been doing it way too long. Just like we see the EU countries going bankrupt, the same will begin to happen at the state level here (the biggies you list being first).
Your 2nd paragraph is typical propaganda... The rich don't pay taxes, it only looks that way until they dig into the countless tax code loopholes.
Gov Patterson had a very candid and interesting take on this subject when he was on WFAN the other day. A politician being that honest was quite refreshing and, I think, illustrates the fact that everyone knows what the problems are they just are bogged down by red tape in order to stop it. He said, and I'm paraphrasing, that all of the large states in the US have dealt with the municipal pension and financing issues in different ways. New York taxed and taxed and taxed, California borrowed and taxed, Illinois just borrowed and assumed it would go away, yet all of the states have failed and will have problems with their pension plan in the next decade. He went on to say that the federal government will need to bail out these states.
The problem is that democratic systems are great for small change, but we are at the point where we need some serious wholesale changes. I think NY is pretty much out of tax options. We already pay the highest property taxes, state income taxes, energy taxes, gas taxes, and sales taxes. NY is out of taxing options. I was on a conference call the other day that talked about the fact that if the Bush tax cuts expire there will be people in NYC that will have a marginal tax rate over 50%. Capitalism won't work very well if you work more for the government then you do yourself.
It's obvious what needs to be done..immediately cut all overtime and extracurricular padding of pensions. The problem is that the unions behind these pensions don't care if the state goes bankrupt and you get taxed off your keister..they want to get paid and arbitration keeps saying they should get paid more because the next municipality over got paid more, and so on goes the snowball.
Then they find enough sycophants who agree "because with the stuff they put up with, I think they deserve it."
When you see people getting paid out 400K in sick time in addition to 90K per year in pension starting at the age of 50, something is dreadfully wrong.
It's very important that the federal govt bail out NY State so some guy who took his pension and fled to Florida doesn't have to work a part time job. I'm thinking that isn't going to fly in Congress.
Gov Patterson had a very candid and interesting take on this subject when he was on WFAN the other day. A politician being that honest was quite refreshing and, I think, illustrates the fact that everyone knows what the problems are they just are bogged down by red tape in order to stop it. He said, and I'm paraphrasing, that all of the large states in the US have dealt with the municipal pension and financing issues in different ways. New York taxed and taxed and taxed, California borrowed and taxed, Illinois just borrowed and assumed it would go away, yet all of the states have failed and will have problems with their pension plan in the next decade. He went on to say that the federal government will need to bail out these states.
The problem is that democratic systems are great for small change, but we are at the point where we need some serious wholesale changes. I think NY is pretty much out of tax options. We already pay the highest property taxes, state income taxes, energy taxes, gas taxes, and sales taxes. NY is out of taxing options. I was on a conference call the other day that talked about the fact that if the Bush tax cuts expire there will be people in NYC that will have a marginal tax rate over 50%. Capitalism won't work very well if you work more for the government then you do yourself.
Dream on! I'm not using my tax dollars to bail out municipal workers sorry a$$'s. Open up the contracts and renegoiate or claim bankruptcy and let the bankruptcy judge give you pennies on the dollar.
It's obvious what needs to be done..immediately cut all overtime and extracurricular padding of pensions. The problem is that the unions behind these pensions don't care if the state goes bankrupt and you get taxed off your keister..they want to get paid and arbitration keeps saying they should get paid more because the next municipality over got paid more, and so on goes the snowball.
Then they find enough sycophants who agree "because with the stuff they put up with, I think they deserve it."
When you see people getting paid out 400K in sick time in addition to 90K per year in pension starting at the age of 50, something is dreadfully wrong.
It's very important that the federal govt bail out NY State so some guy who took his pension and fled to Florida doesn't have to work a part time job. I'm thinking that isn't going to fly in Congress.
Not only won't it fly, but it won't even begin leave the gate. The Southern States are going to have the last laugh on this and stick it to the Union. If the U.S. doesn't have the money and needs to borrow it, these low rates today will become in excess of 10% tomorrow, it ain't happening. Enough with these guaranteed raises, guaranteed free healthcare, guaranteed that.....the municipal workers are like the UAW was in the early '00s, Dumb, Deaf and Ignorant. They are in for one heck of a Wakeup Call. Try suing the state, when your bankrupt the only one you answer to is the judge.
Hey Joe, I hear ole man Potter is paying 50 cents on the dollar, CASH! I got mine, I'm going there too. 50 Cents is better than some worthless shares. They'll be lucky if they see that much.
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