ANNAPOLIS -- Maryland counties would begin paying 50 percent of all teacher pension costs -- now paid for entirely by the state -- to the tune of $500 million in fiscal 2012 under a proposal the state's pension commission is reviewing this week.
The Washington suburbs, which house Maryland's largest school systems, would pick up 35 percent of the tab, according to figures provided by Maryland's Department of Legislative Services. Montgomery County would owe $99 million and Prince George's county would owe $71 million.
The rising cost of teacher pensions has been a scourge on the state's ailing pension system for years. The cost of teacher pensions has soared by 159 percent in the last eight years, while state revenues have grown by 39 percent.
In Maryland, local boards of education have the power to promise more expensive benefits, while the state is required to pick up the tab.
"Counties can decide to go for broke without taking any responsibility," commission member Barbara Hoffman said Monday.
Only Maryland and two other states, Texas and Kansas, pay for 100 percent of teacher pension costs.
Read more at the Washington Examiner
The Washington suburbs, which house Maryland's largest school systems, would pick up 35 percent of the tab, according to figures provided by Maryland's Department of Legislative Services. Montgomery County would owe $99 million and Prince George's county would owe $71 million.
The rising cost of teacher pensions has been a scourge on the state's ailing pension system for years. The cost of teacher pensions has soared by 159 percent in the last eight years, while state revenues have grown by 39 percent.
In Maryland, local boards of education have the power to promise more expensive benefits, while the state is required to pick up the tab.
"Counties can decide to go for broke without taking any responsibility," commission member Barbara Hoffman said Monday.
Only Maryland and two other states, Texas and Kansas, pay for 100 percent of teacher pension costs.
Read more at the Washington Examiner
1 comment:
What are you going to do Rick?
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