July 08, 2009
The pension bomb goes boom
A hastily hatched solution to the shrinking state pension fund "would effectively authorize billions of dollars in new state and local borrowing over the next decade," according to E.J. McMahon, director of the Empire Center.
The bill would allow government employers to amortize part of future pension obligations with loan payments stretching out to 2026, he writes today in NYFiscalWatch.com. The bill passed the Assembly on June 22, its last full day of session. It also passed the Senate June 30, but the legality of that vote has been contested.
The New York Times today reports local government pension costs could triple over the next year. Not mentioned is the impact on state government costs.
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