Gov. Martin O’Malley acted wisely in deciding to address fundamental issues in the state pension system before making any move to shift teacher pension costs to local governments.
This was an especially tough call in a year when the state is facing a $1.6 billion budget deficit and there is pressure from all sides to cut costs and raise revenues. But it was the right call.
In all likelihood, any comprehensive plan to address Maryland’s fiscal problems will include a provision to shift some portion of the cost of teacher pensions to local governments — possibly as early as next year. The state has shouldered this immense financial burden — now approaching $1 billion annually — for years, but the financial reality of post-recession America will probably force this to change.
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4 comments:
i don't know much about the state pension system, but I imagine that state employees paid a certain amount out of each paycheck TO THE STATE. But now, they want to "shift" some of the obligations to LOCAL governments, who will then br forced to raise LOCAL taxes. Is this some kind of shell game or what? WHERE did all that money go? And why aren't some people in prison for fiscal mismanagement, or some similiar charges? I'mm tellin' ya....all these state governments, along with the Fed's, are stirring up a hornets nest with their rush to tell millions of people (who held up THEIR side of the bargain) that they are gonna be cheated and lied to, and then stolen from, by the very people who shook their hand (figuratively) and signed a contract (literally). "Trust your government" people, where ARE you??? Looking for part time work, I imagine.....
There is more than one state pension system. The Maryland State Police and State Teachers unions each have their own while most state employees make up the rest. All except for the teachers pension system collect a percentage of the emplooyee's salary towards his/her retirement. The teachers contribute NOTHING......... how about making them contribute a portion themselves and not pass it along to the counties and Baltimore city?
Maybe when it is passed to the counties it should be renegotiated.
2:17, where did you get the idea that teachers do not contribute to the pension system? I am a retired teacher, and I paid 5% of my salary each month to the system. This choice means that any cost-of-living increases are capped at 5%. Those who contributed 7% are entitled to unlimited cost-of-living increases. The governor has proposed that all new hires automatically must pay the 7%. sa
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