However, Wicomico might not be entirely out of the woods as the unemployment rate spiked at the end of February to 9.7% from its previous December figure of 8.3%. In fact, its net change from year to year - (02/11 to 02/12) - was the highest among all Maryland jurisdictions. Moreover, the budget did not include ramifications for a proposed Schoolteacher Pension shift where projections show that the State general fund expenditures on pensions for both State employees and teachers will grow at twice the annual rate of general fund revenues between fiscal 2012 and 2015. While general fund revenues are expected to grow 4.9% annually during that time, pension costs are projected to grow 9.9% annually. These trends make the current structure of State pension benefits unsustainable.
Total State expenditures for employee and teacher pensions is projected to be $1.54 billion in fiscal 2012, of which $975.6 million is projected to be for teachers, community college faculty, and librarians employed by local governments. Of the total figure, about 84% is projected to be paid from State general funds, with the remainder evenly divided between special and federal funds.
The State further subsidized the teacher retirement benefits with Federal Stimulus money to the tune of $329 million dollars - however - it is unclear how much economic stimulus is provided by retiree spending, especially, with Wicomico's unemployment rate skyrocketing to its recent high of 9.7%. The $329 million basically provides temporary relief from the ill effects of state lawmakers neglecting to make a difficult financial decision in 2006 - and it is unlikely that the covering of fiscal irresponsibility will help get the economy moving again.
What is clear is that boosting the pension of currently retired teachers does nothing to improve Maryland schools.
13 comments:
Sounds as though our taxes are going up in Wicomico. Great - just when I was notified that my hours are getting cut - now I'm notified that I'm going to be paying more in taxes.
Sometimes I just can't win for losing.
NOW will you all open your eyes and ears and pay attention?
Or do they need to tax your dead dog of 10 years before you decide to say this is getting out of hand?
I mean give me a f'ing break... What does it take for you all to realize your screwed as long as you live in maryland and as long as you have idiots who don't want to balance a budget and keep spending?
Can you see NOW where this has gotten us? anything? yet? no?
Death and taxes - seem like the only two constants in life. In my field I wish that I had a pension. If anyone suggests an entitlement, they are terminated.
Now - not only am I working without a pension, but I'm paying to pay for someone elses. Things are very unbalanced in this equation.
I enjoy paying for the pensions of teachers. They are not only overpaid they are lacking in the finer things like pensions and benefits.
Joe:
Why does it take 3 persons to "unveil" the budget -- can't Pollitt handle that by himself?
One of these days we are going to wake-up to a whole US economic system collapse. We are feeding other nations, sending thousands upon thousands of troops abroad, and in our own backyard we have massive unemployment among our own people.
I say get out of all of these entanglements and bring our troops home. The sooner the better. When are these other nations going to realize that they have to fend for themselves.
To 4:55
Bring the troops home, I don't think that would be a very bright idea. The article says that the unemployment rate here in Wicomico is already 9.7% What do you think it would be if we bring all of these troops home. it might invoke another war - a civil war - for lack of jobs.
The budget presented last night could be a smoke screen for yet another supplemental budget. And that is the budget that really worries me.
Bringing troops home now would eliminate continued deaths. I sure hope the lack of jobs would not constitute a reason for soldiers to stay in war country. Good grief.
4:55,I think that's the plan in Washington.Let the economy collapse and put everyone on government handouts,unionize all the large corporations.
The cost of having our troops over ther vs. having them home would more than cover the cost of a domestic job, DUH!
That's when the rest of this nations corporations pull their money out and move out of country 8:07
To 7:30 I agree. Best way to kill a country is through socialization. Eventually - they will consume themselves as the assets are devoured. Even though the short term may appear to the the answer - long term - it will suffocate innovation and eventually devour a country's economy. You are seeing it first hand right now in the US.
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