Governor’s budget address regarding pension
Following is from the Governor’s budget address regarding pension;
A crucial reform that would provide the state with even more to invest in the future of our children is pension reform.
Three years ago, the commonwealth’s pension debt was a 42 billion dollar problem.
Today, it is a 50 billion dollar problem that continues to drive local property taxes up. This problem consumes more than 60 cents of every dollar of new revenue.
In fact, this year, we can expect to pay about $1.5 billion in pension costs for state and school district workers. In just a few short years, that number is expected to grow to more than $4 billion.
You heard that right, I said $4 billion – with a “B”.
When I was before this assembly last year, I proposed a comprehensive solution to our pension problem. My plan did not touch the benefits of retirees, nor did it touch the benefits that current employees have already earned. Debate ensued but no solution was agreed upon.
Since that time, some in this room have put forth their own pension reform plans. They see the need to do something; the importance of solving the problem.
I ask you to work with me in the coming months to find a solution. We must fix this. Those who say there is no pension problem are misinformed. They are in denial.
Billions in new debt to our state is the cost of doing nothing. The only question is whether we will do it now, when it’s still a manageable problem, or let others do it later, when it’s an all-out crisis.
So many good things that we achieve can be undone by uncontrolled debt and our increasing pension costs. The basic reform package in my budget this year will save this state and local school districts a combined $300 million.
Inaction is unwise in the extreme, and deeply unfair to our children, communities and schools.
Again, I urge, help your state. Help your school districts. Help your taxpayers. Enact public pension reform before the end of this session.
Robert Storm
Eastern Region Vice President
www.pscoa.org