The taxpayers of Wicomico County will soon be assessed additional property taxes and/or other taxes to makeup for the huge losses incurred in the school teachers pension fund.Although the teachers pension was almost 100% funded as late as 2000 - the pension fund valuation dropped into the 50% funded range as a result of poor investing. Even Maryland's bonding rating agency - Fitch - issued a bad report citing that Maryland had better take action or else risk losing its pristine rating. Well - Maryland officials have taken action and soon will pass-on these costs down to the Counties. How will this stack-up for Wicomico? Well take a look at the table below:
Projected Teacher Pension Cost - (in millions) - Wicomico County
2013 - $3.80 million
2014 - $4.32 million
2015 - $4.89 million
2016 - $5.53 million
2017 - $6.22 million
2018 - $6.98 million
2019 - $7.82 million
2020 - $8.73 million
2021 - $9.74 million
2022 - $10.83 million
New Posts to fall below.
49 comments:
I wish you would quit calling it a bailout. It is not a bailout. The state is going to make the counties pay for the portion of the penguins that the state has alway paid. The money lost in the fund is either gone or will recover with the stock market. No one is being bailed out.
That is about the cost of Bennett Middle.
I would like the county to subsidize my retirement as well. It's only fair
We need to make sure the entire country knows about this before the elections in 2016.
5:39 It is a bailout. My 401k is down 60% because of the market also. Are the taxpayers of Wicomico County going to reinburse me?
Honor existing obligations but put everyone on a 401k like the rest of the working world. I am tired of the public trough.
Here comes all the whining. If you think the Bd of Ed employees have it so great, they why don't you all apply? There's good and bad no matter where you work. What a bunch of whiny fools! Get over it.
5:39 when you asking the taxpayer to fund it. it's a bailout! idiot!
5:39 Why won't you acknowledge that it is what it is. The US government did the same with GM. They gave the stockholders a secondary position and, instead, allowed the union to have priority over the stockholders.
Same analogy can be applied with the schoolteachers pension fund. Do you think for one moment that the State wanted to be saddled with the ball and chain fund which is short by about 14 billion dollars?
It is definately a bailout in my honest estimation.
I heard on Reddish's radio show with Rick Pollitt - that even Rick is concerned about the long term ramifications for Wicomico County.
And for Rick to be worried - is really something to be worried about.
Reference 5:39 Posting
I wish you would quit calling it a cost shift. It is not a cost shift but a taxpayers bailout.
I really wish someone would file criminal charges against the custodians for investing in risky assets.
I believe 5:39 would be better served going over to the other media, The Daily Times, where the cool aid staff refers to it as cost shift. As for myself, I also believe the action called taxpayers bailout is on-point, at least from my perspective.
I agree with those that feel this is not a bailout. It is simply, (from the State) "we spent the money on things that were more important to US. YOU put the missing money (already collected from taxpayers) into the pension fund. At the blink of an eye, they could do the same thing with highway funds for the County. The County has NO say on what the State agrees to fund teachers for during their negotiations with the Union and they could grant them a 20 raise in their pensions next year and stick it to the County. Oh, you say, Baltimore City can't afford this. Well, maybe they take a larger portion of your slot revenue allocation and give it to the City. THAT is a bail out.
Keep your terms straight.
In case 6:58 hasn't noticed - the State did take our local highway fuel tax revenues and stuck it to us here on the easternshore. How about the sales tax collections that we collect here locally. Where does that money go - most of it goes across the bay to fund things like the Maryland Stadium Authority - for which we derive no benefit.
So my advise to you - think before you speak.
Good Lord, people! Hasn't anyone here have any horse sense? If it was once funded by the State (your state taxes) but now it's to be funded by local government (your local taxes)does anyone think for one minute that your state tax will go DOWN? Naww, it's just more money for O'Malley's "General Fun". You are now being double taxed for the same thing! GET IT? I need to move to another state....
Thank you, 6:28! I am a retired teacher who does have a decent pension, but I also contributed to it all those years I worked. The way I look at it, it's a nice benefit for all the time I spent in front of the classroom earning a pittance of a salary compared to my earning potential in the privatge sector.Teachers' salaries and their pensions are supposed to be paid by the taxpayers. The retirement fund did receive accolades for the way it was handled until the economy went south, along with our own investments. Paying your teachers while they are working and providing for their retirement income is a taxpayer responsibility, like it or not. The proposal by the governor is not a bailout like the GM bailout; GM is a private enterprise.
7:51 Retired Teacher
GM used to be private enterprise - until the government got into the act, now it is Government Motors. The US government still owns controlling interest in the outfit through its ownership of a majority of stock. That is why I refuse to buy a GM product ever again. Why don't you call the state's teacher fund for what it is, indeed, it is a government bailout, pure & simple.
The executive who was in charge of the state employees & teachers pension fund should be held accountable for the losses - not the taxpayers. Why all of this is now being brushed under the carpet is beyond me.
I would like the tax payers to pay me my full salary while I retire as well.
"Paying your teachers while they are working and providing for their retirement income is a taxpayer responsibility, like it or not."
The problem is that the taxpayers have ALREADY paid for the pensions in the form of State tax collections. Asking for it again via County taxation should not be a taxpayer responsibility unless the State plans to give us refunds (I doubt). I support cutting teacher pensions if they become County responsibilities. Why not?
teachers, why is it my responsibility to pay for your pension? you don't pay for mine.
i understand we pay your salary; but pension; no i don't see that.
your bennies have always been much better than 90% of the private sector. again; why do i have to pay for your pension?
please don't come back and tell me your salary was so much lower than the private sector. this dog won't hunt. i've never believed that and i dare say many others don't believe it as well.
ricky, stevie and the rest of the liberal spenders are going to have to go on a spending (money) diet. this time they better get it right. enough of their bad decesion making when it comes to MY money. they spend money like it's water and they can't seem to turn it off. now is the time...
i hope i stepped on someones toes with this comment because i intended to.
The state taxpayers have always funded a portion of the teachers pensions. It is my belief that this was done to keep an even playing field when it comes to the teachers pensions for the whole state. The percentage of pay hat a teacher earns is consistent across the state. The state now wants to shift that burden to the counties. It is not to reimburse or "bailout" the fundfor the mismanagement and the money that was lost in the down market. It will now be the counties paying what the state used to pay. They will shift it to the counties a little bit at a time, year by year until the county is paying the full amount the state use to pay. It is not a bailout ! If people wish to be mad, be mad at the governor, not the teachers or the Board of Ed. In the future, you will see poorer counties decide to not give the same pension or percentage of pay to the teachers as the more affluent counties. Good teachers will move to the counties who pay better and have better pensions. The rest of them will teach in the counties that can't afford the best of the lot.
You all have no idea what the terms of the retirement are. Atleast one person thinks they get 100 percent pension. WRONG. It is NOT a bail out. The fund is intact. The state is just going to make the counties pay a portion rather than them foot the whole thing. Before many of you comment, why not find out some facts firt. Most of you only show your inbred eastern shore thought process.
I teach in a private school, and we have to fund our own retirement, while making $15-20,000 less per year than public school teachers. The taxpayers should not have to pay for your salaries AND your retirement. You make much more money than we do, so budget accordingly and deal with it.
6:40 --
The Rickster is worried because he will have to give up his staff, including Strausberger, and start doing his job himself. And also his "public information officer" (make that reelection campaign manager).
All:
If you think taxpayers overpay the teachers in Maryland, take a look at what we pay the judges, who also have a much better pension deal -- and they could get a huge raise this year, too.
11:02, your ignorance is showing. touchy, touchy. i think most of us know what we're saying here.
the bottom line is this: we have a situation where the union has negotiated the "teachers package" way beyond what the private sector has and many of us weren't really paying attention until the obama economic collaspe. unfortunately the end product doesn't equate with all the monies poured into this failing system, but that's for another day.
if you don't like the inbreds here on the shore, please leave and go live with the "city folk". this is your choice my friend. oh, and don't let the door hit you in the rear.
last time I checked most public school teachers are making between 40 and 60K a year for part time work. yeah I said it part time work. 9 months of work then add in all the vacations christmas spring break in service days etc. And you want me to pay for your pension too? get real it ain't happening. You chose the job precisely because you knew you would get a decent salary and all the time off. fund your own pension like the rest of us! and if you don't like it then find another job! oh that's right then you would actually have to produce something and be held accountable! what a terrible thought !
I love the lie calling it a "cost shift"! If that would be true, then why the 10 year phasing? If it were true, the shift would happen in one day, the state would lower my taxes the same dollar amount the county would raise them, so in aggregate, my taxes paid out this year would remain the same.
No, The "shift" is the smoke and mirrors used to "shift" the state tax I pay now for that into the "General Fun", and charge me an extra tax through the county to fund what I was already funding through the state.
In the private sector, this is called "extortion & theft". O'Malley calls it a "cost shift".
That's how it's different.
To 6:55
I wholeheartedly agree. It is extortion and thief. I do not know why all of the above people are posting and stating that it is a cost shift. Bottom line - the State officials squandered their money and now they are coming to us ordinary taxpaying folks to bail them out.
Liberal medias especially - The Daily Times - try to tone the languague down by defining it a cost shift - instead of theft. They believe by using such phrases that can passify the naive public into actually believing the lie.
Really - the State's Attorney's office & US Federal Attorney General's office should be investigating this heavily.
Last but not least - the taxpayers should be calling for the ouster of all those elected officials who condone this action.
Listen, the State puts together a budget by comparing all it's financial commitments to expected State Revenue (taxes and fees). If they are short, they raise taxes or add another fee. Sometimes, they forget where they spent money such as the Highway fund or teacher pension fund and they ask the counties to help them out a little. Anybody can forget.
The new school construction projects that the State is giving their buddies in the large construction companies will a lot of jobs to our illegal population. It may even increase the population. That is good because we will then need to hire more Spanish speaking teachers and social services workers to take care of their families. That create jobs. Yippee!
By the look of the projections - it looks as though the County just inherited the State's biggest fiscal problem to date. Now the County has a spending problem instead of the State - (kicking the can down the road).
All of the public officials assocated with this budget distraction - (bailout, shift, theft, should be ousted).
Privatize the school system at least we will know our children are getting a proper education.
We need a parents union.
Teachers think that they dont make good money. How many people out there make 40K and that's (Starting pay) on the low side and has all summer off. If it is so bad go into the private sector. But talk to people in the private sector before you do it. What they need is to get rid of the bad teachers.
6:31 am
You are stupid. Have you not read on this blog many times that teachers do fund their own pensions? They contribute 7% of their pay every paycheck towards their pension. Which is probably more than most people in the private sector put in their 401K. I bet you also gladly take the employer match on your 401k don't you. Your anger and blame needs to go directly to the Governor and Legislature of this over-taxed state. In some states, yes teachers' pensions are 100% paid for, but not here in MD. Teachers also pay for the benefits they receive as well, nothing is for free. If you want us to work 12 months, that is fine, pay me for the extra time and I'll gladly work it. However, be prepared to pay me an extra 10-15 thousand dollars a year, which will also make the amount of my pension increase as well. Oh, and don't forget to pay me know for my vacations and holidays now, which we currently do not get paid for. I receive no pay for holidays or the summer off and currently work a second job in the evenings and all summer to provide for my family and hopefully send my kids to college. The teachers, BOE, the Union, and the county are all against this move by the Governor. So, point all you misguided anger toward Annapolis.
10:49 am
I don't read many teachers on here complaining about their job. Most are happy in their job and happy to have a job. If you have a college degree or even a master's like teachers do, then you make much more than 40,000 a year. I can also point out many who don't have degrees who make much more than teachers. I know a police officer locally who makes close to $100,000 dollars a year, plumbers and electricians make more than teachers, and on and on and on. Oh, police and firefighters have a better state pension than teachers.
I do agree as a teacher, that they need to weed out the bad teachers. It is currently very difficult to get rid of the bad teachers and many principals don't have the stomach to make it happen. A bad teacher can set a student back 2 years in their educational growth. The good teachers need to continue to be rewarded for their hard work under difficult circumstances.
Dear Private School Teacher,
I would love to teach under the conditions that you in everyday. With supportive parents, children eager to learn who have amazing background knowledge, small class sizes, and an administration that doesn't put up with any foolishness. You get paid much less because you don't have to put up with all the BS that a public school does every single day. If you want the money and awesome benefits, come on over to the public schools.
Wicomico's school system needs to be dismantled from the top down.
Things seem to be discumbobulated from the top down. From affairs, firings, promotions, embezzelments, incest, steroids, I have never witnessed such a mess. And now a taxpayers bailout for a pension shortfall. This is totally unacceptable from my point of view.
bailout for a pension shortfall? Where have you been?
There was no shortfall. Maryland officials reallocated the taxes they collected to fund the pension to the amount they needed to issue their buddies a contract to build some schools. There is no commercial business for these large contractors so a handout from O'Malley is the only opportunity remaining. I'm sure it will help with campaign contributions down the road. The same goes for the gay marriage baloney he was pushing. It's all for campaign money.
O'Malley isn't really spending money, he's giving it away for political favors.
i sure hope EVERYONE understands what 2:16pm said. it's right on.
I believe both parties - (democrats & republicans) - will agree that the Schoolteachers pension bailout as being none other than another tax increase to Maryland citizens. I was looking at another House Bill this morning - HB-1332 - whereby a legislator seeks to eliminate the ENTIRE Investment Division of the State Retirement Agency INCLUDING the Chief Investment Officer -(CIO). It was also sponsored last year.
Virtually all local jurisdictions across Maryland are running scared. Even if the legislature agrees to gradually implement the plan - it will prove to be economically disastrous for almost every Maryland subdivision.
I noticed that Delegate Norm Conway spoke about a phased-in transfer in yesterday's DT article - but even that will spell disaster for virtually all jurisdictions, particularly, Montgomery & Prince Georges.
I would say that our Governor, House Speaker, and Senate President - (O'Malley, Busch, Miller) - have made a lot of enemies over the proposed cost transition proposal, particularly among our state's residents.
Teachers should be piss tested like we do for welfare recipients.
7:41. Maybe you should be the first to give a specimen.
What many of you fail to realize is that part of the reason for the shift to local funding of pensions is to hold those higher paying counties on the western shore more accountable for a disproportionate pension cost. When counties on the western shore have salaries 10-20 percent higher than the rest of the state then they should also be on the hook for the increased pension costs. Part of the reason whey teachers salaries are perceived as high is because there really aren't enough "good" teachers to go around. It's hilarious how some on this blog complain about poor teachers in a county with the 2nd lowest salary scale in the state. What do you expect?
How many months in a year do teachers actually work. Most employees work the entire year and can only get one weeks vacation during the summer. Wicomico County shouldn't have to pay this. But, what can one do in a corrupted state.
Hey 10:56
Pay me KNOW for vacations and holidays! This is a teacher-need I say more...
Sorry 12:00 am, I thought we were on a blog here, not submitting a master's thesis. Simple typing error that could and does happen to everyone. I'll be sure to submit my posts to peer review before hitting send next time. Or as 8:12 pm said, you basically get what you pay for here in Wicomico. Yes, even teachers (gasp)make mistakes. Send your grammatically correct letters to Annapolis were your true anger should be directed.
11:03
you know Fire Fighters, Police Officers,Electricians and Plumbers that make 100K. You had me doubting you with the Fire Fighter and Police Officers but you lost me with the plumbers and Electricians. You just lost your credit ability. May be the chief of police and the Fire Chief the owners of a plumbing and Electrical business. When comparing wages do a lateral comparison not the top pay that like comparing the superintendent pay. I hear on a daily Basis that I don't make enough money to put up with this. Let Teachers teach get rid of the bad teachers and the bad kids. If a student doesn't want to be there get rid of them. Master plus thirty is just a pay raise there are a lot of bad teachers with masters.
To 8:49 comment - basically you get what you pay for.
My Response:
ought - ought = naught
When you have nothing to begin with - you have nothing to end with. Our economy has been decimated by Annapolis politics.
Until our state courages business growth - our economy will continue to suffer.
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