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Sunday, January 26, 2014

PENDING ECONOMIC DISASTER - SCHOOL TEACHER PENSION SHIFT - O'MALLEY RAIDING FUND

Hello Joe, Recently I made some comments on this coming election being about issues. I believe there is an issue out there that is being brushed aside in hopes that somehow it will just magically go away. It won't.  As important as the issue is, the people involved are just as important because this is an election year. It's important to know what your representatives have been voting on that directly impacts you.

TEACHER PENSION LIABILITY NOW BEING SHIFTED OVER TO THE COUNTY'S BALANCE SHEET - NEW FEDERAL DISCLOSURE RULES TO TAKE EFFECT - GASB NOW TO REQUIRE A CLEARER PICTURE :

Teachers, have your union reps been keeping you informed on how your representatives have been voting on bills and budgets and how it's going to affect you? Has anyone taken notice of some major large city bankruptcies that is leaving teachers with a retirement value of $.16 on the dollar? Did you know that even now with your retirement costs up to 7% that your retirement fund is only 65% funded and that your governor is still proposing to take another 100 million dollars out to go into the general fund to be used for: (Okay, test question: what is our county road taxes, Chesapeake Bay Fund, sales tax and whatever other funds he can get hold of going towards? Answer: the Governor's Legacy Project The Four County Western Shore Rapid Rail System ).

Yes, your hard earned dollars and your union dues are being used to elect him, regardless of what you think of him, are backing this project that will give him the biggest number of voters for his presidential bid! Teachers, I would be really ticked if my union dues were being spent supporting someone who doesn't support me and on top of that is endangering my retirement fund. As important as that issue is what about your local representatives who have supported the Governor in this policy?  Does this concern you yet?  Has your union reps emphasized as to how these local officials are voting in Annapolis, while you are working, is affecting you and your families? Here's something I would like one of you readers to verify. Over the last few State Budgets, passed by our local representatives, the Teacher's Pension Fund has been severely underfunded to the point that the Governor was warned about it by the major credit rating agencies. Now from what I can find it seems that Delegate Conway, Delegate Cane and Senator Mathias voted in favor of these budgets. So to me if they voted in favor of the budgets they were okay with underfunding your retirement. Well, when everyone thought the Governor couldn't get any more funds from the Teacher's Pension  a bill (originally HB863 and SB836 that turned into HB1801 and SB1301 during a first 2012 Special Session) that passed about 50% of the costs back to Wicomico taxpayers along with what was being taken from the general fund to pay for the Rapid Rail that should have been going  to the Teacher's Retirement Fund. (Sometimes these bills get really difficult to follow so if anyone can show me where I went off track please jump right in).

HOW THEY VOTED:

Guess who voted in favor of that bill (click here) SB1301/HB1801? Delegates Conway, Cane and Senator Mathias. Now we all know there is no way this County is going to be able to fund the amounts of money this is going to require. Heck, wait until you see the new taxes and fees the County Executive will be proposing because they misread information right in front of them. I know he will be asking for new taxes because of the questions he was asking at the legislative Breakfast and now with what just hit the County Council today. Teachers, taxpayers why should any of you want to vote for these incumbents?

I believe Mr. Pollitt, Delegate Conway, Delegate Cane and Senator Mathias have been around long enough and should have a nice retirement.

John Palmer, Delmar Maryland.

58 comments:

Anonymous said...

John I believe your comment is right on the money. My wife is a retired Wicomico Co. teacher and when this bill was passed last year I said, bend over, here it comes. Thank goodness she elected to stay in the old retirement plan when the pension plan came out. Back then we had to borrow money to do it but its worth it now.

Teacher in Wico. County said...

Once again, John Palmer is consciously LYING to make a PR point. Just as he lied about the revenue cap being a "tax cap" when he ran VOICE, he's lying about the use of teacher association dues being used for political purposes.

NOT ONE DOLLAR of WCEA dues are used for political activities. All funds used for that purpose are raised through a PAC when members have to donate to voluntarily.

Stop lying AGAIN, John Palmer.

Anonymous said...

John Palmer is exactly right. The teacher pensions and their other very generous retirement benefits (which are paid for out of local school budgets) are not sustainable over the long term especially in an area like ours that has experienced so much economic downturn.

As the costs continue to rise and more teachers retire, significant dollars will be needed to pay for these benefits, and they will have to come from the county tax base and the local school budgets. That means less classroom money for kids and higher local taxes for all.

The teachers union is guilty of never ending advocacy for added benefits with no ideas as to how they can/will be funded over the long-term. Too many state and local democrats are influenced by the teachers' union voting block and their substantial re-election contributions.

Anonymous said...

To 11:03 - You must be an educational union official.

You know a backlash is coming because we have seen the teachers demonstrating in Annapolis just last week over the pension cuts.

It is not a lie - everyone knows that the counties are going to be weaned off from any state subsidy - just like was done with the school teachers social security portion that was previously paid by the State. And you know it is the gospel truth.

The teachers have been set-up and your elected officials were complicit in the whole debacle. Now that election time has come around it is time to shine a spot light on their actions.

Anonymous said...

Hey Teacher -- I guess this means the affiliation your Union has with-- NEA comes free of charge--

why do the activism minded use lies of omission and sell them as the truth?

This is the key problem in Education. The vapid use of idioms and partial truths to advance a desired outcome instead of taking blame for failure..

Anonymous said...

'Your sins will find you out.' With today's technology, it is hard to hide anymore. The politicians used to be able to hide behind mountains of paperwork that helped to shield them from their actions.

Not anymore. Their vote for the pension shift tells the truth - click onto it and you'll see.

Anonymous said...

Yep, you can tell an election is coming around. Time to give an accounting.

Anonymous said...

I am in the teachers union because of the way the administration is taking away from our kids. I did not vote for anyone that Mr. Palmer is talking about, and neither did my union rep.

Anonymous said...

"Has anyone taken notice of some major large city bankruptcies that is leaving teachers with a retirement value of $.16 on the dollar?"

No they haven't taken notice because they are in denial of this very real fact. They as well as other government employees would rather ignore and pretend like it's not happening and not do anything then be proactive now. The democrat tax and spend policy has failed.

Anonymous said...

11:03 wicomico COunty Teacher,

Share your WCEA budget income and expenses with us. Enlighten us!

Prove that "NOT ONE DOLLAR of WCEA dues are used for political activities." The staff, the lawyers,the MSEA payments, the liability insurance, the printed & media materials for political advocacy (Couched as educational materials), the travel to Annapolis? . . .none of that is for political activity? I don't think so!

Look at your own MSEA facebook page. YOUR cover page has a picture of & quote by Lt. Gov Anthony Brown AND then underneath it says, "Endorsed by MSEA members as Maryland's next governor." Don't insult me by saying this is not a political activity or that FB is free.

Your PAC may be the only entity making DIRECT POLITICAL CONTRIBUTIONS, but don't dare say, "Not one dollar of WCEA dues are used for political activity!" That is a blatant misrepresentation of facts, and you know it.

Show us your detailed budget. C'mon!

Anonymous said...

One would think that our elected officials would be smart enough to know that all of their previous work would not be remembered. Well I'm like an elephant and I don't forget.

Signed
TAXPAYER

Anonymous said...

Response to 11:12 Posting

I agree with you, this scenario is unsustainable. Not in Wicomico County. I've seen the exponential increase numbers that the cost of the schoolteachers pension is going to cost. If I'm not mistaken the liability will double in just a few years. And O'Malley is already raiding the fund at the State level.

It is unsustainable.

Anonymous said...

These events are going to come around on these officials just like a boomerang. You can run but not hide forever. In my estimation they have been reckless in their behavior. Now it time to pay the piper.

Anonymous said...

So all of this comes back on these officials - and what happens to them - they get voted out of office. What happens to us - screwed for years if not life. Maybe they should be sued for malfeasance and have a debt to repay.

Anonymous said...

11:28 - Thank you for your honesty. I believe there are a ton of wonderful teachers who do not agree with their union's positions, but who also do not have a clear understanding of the big picture when it comes to the financial part. It may appear the "administration is taking away from kids," and yes, that is true to a great extent. The real problem is, however, that when it comes to the local school board budget, "fixed costs" are funded first. And fixed costs include salaries, payroll taxes, health, retiree benefits, etc. So, yes, money is being taken from kids to pay for the benefits that so many teachers and retirees enjoy. As pension and other salary and benefit costs go up, they must be funded, so money come from the kids. Those costs are growing exponentially, like others have said. The income side of the school budgets are not increasing near as rapidly, so the money has to come from the classroom.

Anonymous said...

Here's another good point, why do teachers in Wicomico County support their union that does NOTHING to help them. Too many times kids get out of control and the school board and the union do NOTHING to protect the teachers and the students. I work in the school system and see every day. If a teacher attempts to make a complaint they get threaten to be fired, so where is the so called Union to help the teacher other than just take their money and kiss the a** of those in Annapolis?????

Anonymous said...

Well that's very interesting what you claim Teacher in WicCo because according to the state of MD's own campaign reporting site the MD State Teachers Association did contribute sizable amounts to politicians in the name of their PAC AS WELL AS I repeat AS WELL AS their actual Business/Group/Organization. I will be more than happy (and actually take great pleasure) in itemizing these contributions not made by the PAC for you if you wish.

Anonymous said...

Thanks for posting this and explaining this Joe. The wording of the bill is below and it is hard for many voters to be aware of the effects of certain bills when the lingo reads as follows:

"Altering or repealing specified required appropriations; altering the distribution of specified revenues; altering or repealing specified funding requirements; altering the authorized use of specified funds; authorizing the transfer of specified funds; etc."

Anonymous said...

"Show us your detailed budget. C'mon!"

Hell will freeze over first with these people. Honesty is a foreign concept.
What's really concerning though is this "teacher." Maybe it's me and I missed it, but where in John Palmer's letter does it mention the WCEA? Perfect example of why dogs are smarter than what MD is graduating from the public schools. Look no further than what is "teaching" them! Darn teachers can't even read and comprehend then go on some paranoid tirade totally irrelevant to the point being made.

Anonymous said...

I noticed that McDermott voted "nay." Perhaps Joe is right and Mathias should enjoy his retirement and let McDermott take over. Mathias seems to be becoming more selfish as he ages and has accomplished very little over the past 3 years to helping our area's residents. He had his chance. Was a good try it's time Jim to go.

Anonymous said...

Hmmm Yeah.....where does Palmer even mention the WCEA? I only see union. WCEA is an affiliate of the MSEA, who makes political contributions both as a PAC and an entity. A quick look at the state site shows a $6000 contribution to the Demo State Central Committee, they in turn make contributions to candidates with the money they receive.
Expand your horizons Teacher. There's what "they" want you to believe and then there's the real world.

Anonymous said...

!2:13 - I'm on your side with published comments already. Save me the trouble of research and publish those contributions for all to see. I hope you can cut and paste it so the teachers who pay those dues can be enlightened. Hopefully Wico Teacher at 11:03 doesnt' understand simply because he/she is spending every waking hour teaching, tutoring, helping, coaching, advising, and enlightening our kids in the classroom.

Anonymous said...

Numbers don't lie.Way too many people are retiring these days.It's understandable that deterrents are being put in place.Seventy something isn't too old for a teacher anyway.

John Palmer 3 said...

Dear teacher , What a shame that a "educator " can only resort to name calling rather than stating facts, which you have shown none. , I am the oldest son of retired Master Chief Pal er , while we do not see eye to eye on many things he is honest to a fault and if you would ever listen to the Facts and not to the union brainwashing that you live by ,the truth would be clear. It's a shame that teachers like you are responsible for children's education because you don't teach you indoctrinate ! Sad .

Anonymous said...

Well I am the working poor, I hope Ricky and Obama has some extra money, because, if I bare one more new tax, on my single parent check, I will need the government to start giving me money!!!! preferably from Ricky and OMalley and Obama's personal pockets

Anonymous said...

Once again, politician, thinking only of themselves, again!!!! politician becoming more narcissist every single day

Anonymous said...

"◦Between 1990 and 2010, 93 percent of donations made by National Education Association political action committees and individual officers went to Democrats, according to OpenSecrets.org. According to the NEA’s own “Status of the American Public School Teacher 2005-2006,” (latest available data produced March 2010) only 41 percent of public school teachers are Democrats. A Wall Street Journal editorial revealed that the National Education Association — the nation’s largest teachers union — “is spending the mandatory dues paid by members who are told their money will be used to gain better wages, benefits and working conditions. According to the latest filing, member dues accounted for $295 million of the NEA’s $341 million in total receipts last year. But the union spent $25 million of that on ‘political activities and lobbying’ and another $65.5 million on ‘contributions, gifts and grants’ that seemed designed to further those hyper-liberal political goals.”
◦The Journal added that the NEA’s financial disclosure forms “expose the union as a honey pot for left-wing political causes that have nothing to do with teachers, much less students.”"

Anonymous said...

Your all clueless..TAKE THE MONEY OUT OF THE BOARD OF ED place it in a SCHOOL VOUCHER FUND...

Anonymous said...

I totally agree with the author of this article.

Conway, Cane, and Mathias have been there to long. Our founding fathers were often worried about lifetime career politicians and this is a classic example of the incumbents abuse. They simply have lost touch with reality. The State officials know very well that funding these pensions is unsustainable, particularly, at the local level. There are simply not enough resources to fund these expenses. I do not know exactly where to go from here as so much damage has already been done.

Anonymous said...

We are in a severe depression. You and I know it, my neighbors all know it. Know matter how you sugar coat it the fact remains that our local economy is in shambles. Our State economy is also in shambles. For that matter our whole nation has been operating on borrowed money and it is getting worse each and every day.

Anonymous said...

Just curious, when talking about all the votes in Annapolis, why just the picture of Pollitt? Seems to be more of a state issue than a local one.

JoeAlbero said...

anonymous 1:49, Good honest comment, thank you. Now, why do people keep voting for more PAIN then. Sure makes you wonder just how much Americans can actually trust ELECTRONIC BALLOTS.

Anonymous said...

Yep let the Teachers keep voting dumbacrat. We all know who elected Ohblaablaa. This county is in a for a shock if Rick Pollitt is re-elected. I had a ton of faith in this guy. Rick do the right thing dont even run.

Anonymous said...

I am a teacher in Wicomico County and I am a Tea Party Conservative. I am in the union because I need the liability insurance and the minimal protection the union can give me against the administration and parents. I am a firm believer that we should re elect no one. I know that some of our local money goes to MSEA which does have a political agenda and I am not supportive of that. Unfortunately us teachers need whatever protection we can get. If we don't get sued by a parent we will get fired for trying to discipline the kids too harshly. The teachers in this county are not the problem. But if the people of this county continue to disrespect the profession as much as they do, you will end up a lot worse than you think you have it now.

Anonymous said...

2:27, this is what many citizens of this country Don't respect about you and the majority of teachers that chose to remain in this Evil union.

Just imagine if you had taken the time to get others in your chosen field to say enough is enough and opt out of these unions. Then what could they do. But no, you had to allow yourself to be intimidated to the point of enabling these ruthless, underhanded, corrupt unions to continue their dastardly deeds.

Grow a spine and do what's right for our children, our county, state and nation. Speak the truth from the housetops and maybe you will see some real improvement.

Anonymous said...

The culture in the classroom is a direct reflection on the educated and entrepreneurs leaving the county or not coming back to the county upon graduation. What we are left with are those who are ignorant, think the system owes them, are too self-centered to raise their children, would rather party and get high than attend a PTA meeting, think their kids are their friends instead of being their parent....and the list goes on. Root cause - bad policies by elected officials have driven those with education and values out of our county or into private schools. Low paying jobs, nothing to look forward to or aspire to - this downward spiral will continue without a major intervention that the current administrations - city and county - are incapable of doing as they are at the core of the problem.

Anonymous said...

Oh all of these comments are so funny. Does anyone posting have anything good to say about this county, the teachers, or this state? You all are so quick to place blame on everyone and anyone. Get involved and make a positive difference. Bet you can't do that.

Anonymous said...

...an interesting note...while the candidate packets have been sent out and the deadline has yet to arrive...this same union has already donated thousands to Mathias, and Conway as proof of who they already support...no matter what!!! Conservatives need not apply!


Anonymous said...

3:05 you better run and hide or the "evil union" will get you. We all know the goal of the union is to destroy our way of life by stealing the youth one at a time. You sure do give the union a lot of credit.
3:21 you are very correct in your statement about why we suck as a community.
3:23 if we all felt like you about what's going on around here we might actually be able to make things better.

Anonymous said...

3:23-Why get involved?Things are going perfectly in my opinion.I wouldn't want to mess that up.

Anonymous said...

O'Malley isn't the first to,raid the funds. They've been raping the teacher's pension fund for years. And this is why they shifted the payments to the counties. Dirty trick IMO... After they charge teachers 2% more than other employees in the general fund. The unions should have shouted from the rooftops against this, and the superintendent's as well. It's not fair to pay into a system that's not going to be there when you need it... And DON'T even get me started on social insecurity. There will be no net for Gen X or beyond.

Anonymous said...

1:49 myself as a small business owner agree and have said this for the last 4 years.What I dont like is how the connected people keep getting grants and loans for stupid projects that wont make it.

Anonymous said...

John Palmer should run for county executive.

Anonymous said...

The bottom line is that the taxpayers are being set-up for yet another round of tax increases. Our income tax rate increase(recently implemented)wasn't enough - and so now we are going to get either another property tax rate increase and/or new taxes of some sort.

Either way, it is a bad day for Wicomico County residents.

Anonymous said...

@11:28 AM -

It's said that you are member of the teacher's union to support the kids. The unions have never, and will never represent the kids. By the design of the establishment of the union, they are supposed to represent YOU. And they do a piss poor job of it, IMO.

Anonymous said...

I just don't know why the citizens can't use vouchers. That way they could pick out their own school - (public or private). It is obvious that the current system is broken and it is getting worse not better.

And it is also a shame that the taxpayers are being bound to collective barganning agreements whereby they have no input.

Anonymous said...

I have not read any coverage on these events on WBOC, WMDT, or The Daily Times.

Anonymous said...

There are not very many job opportunities here in Wicomico. Simply not enough jobs and certainly not enough wealth to justify another round of tax increases.

Anonymous said...

All I know is that more than 50% of my tax money goes to the BOE. The loose change left over is grabbled over by law enforcement, public works, roads, water, sewer, and waste water treatment. I'm sure I left a thousand other departments out of this list. Fire Dept...

The money we pay them is being hijacked by Omalley and the unions, and stealing from the classroom is rampant.

Vouchers would stop this crap.

Anonymous said...

Democrats will always vote the party line. Rile 'em up all you want, deluge them with facts that should make them think, try any common sense tactic you will...they will always vote the party line.

Anonymous said...

vote out ALL incumbants

Anonymous said...

3:42, run and hide? not hardly. I'm not intimated by too much. my point, again, is simple. the teachers have always been intimidated into joining the lying, corrupt unions for insurance reasons. REALLY??? how stupid is that.

you have to admit, our government schools are an abject failure and have been in this free fall for years. the emperor is naked and you just don't want to see or admit to it. the blind continues to lead the blind.

as our country and Wicomico county burns our children suffer with poor skills and an abysmal future at best. this is a fact.

those of us who pulled out of the government system when we saw the writing on the wall tried to tell the powers that be at the time, that their system was going to fail, but they didn't want our input. we had no choice but to take our children out because we don't get to do a "redo".

this crap has been going on far too long and nothing is going to change as long as we have people like you taking up for the fiasco.

Anonymous said...

5;14 seriously? since wboc wmdt and the daily disappointment haven't weighed in ought to be reason enough for you to know how screwed the public is!

Anonymous said...


The teacher commenting at 2:27 is quite accurate from what I’ve seen and heard from teacher friends. The initial post tied a number of issues together. Let’s review:

The state under OweMalley’s malfeasance has robbed Peter to pay Paul for numerous programs on a regular basis while scattering mandates and money like crazy. Businessman would be in jail.

Pension administration and investment selection has gone to cronies and their results have fallen short of assumptions. A few years back teachers were required by a new law to increase their pension contributions from 5 to 7% of pay to help close the shortfall; the state also contributes which is where siphoning the state’s contribution in the proposed budget comes in. The stock market has been very active in the past year; if that pattern holds the siphoned funds will not earn anything this year or in any year going forward while the obligations continue to accrue. Eventually there will not be enough to pay the benefits some time down the road.

Teachers also contribute to Social Security so their upfront payroll takes a mandatory hit; not carrying water for them, just explaining.

At the same time the contribution was raised, the vesting period to qualify for a pension was doubled from 5 to 10 years. If they leave before then they get only the money they contributed and what it earned; the state keeps its contribution and has no further obligation. The doubled vesting period was also changed as a way of making up for the lousy results since the retained funds from non-vested terminations go back into the general pool to partially offset the state’s failure to make contributions.

After the above wiggles and schemes OweMalley was still short of cash so the plan to shift teacher pension costs to counties was hatched; that would reduce the state’s obligations and make his numbers look better. Woe to county executives except they could squeeze the Dems into line ala Ricky.

Teachers, and some other employees, work for or are funded by the county but are in a state retirement plan. Pros and cons to this. If the state had been fully funding the pensions, less of a problem. Likewise if the investment advisors had been selected for strong proven results rather than political ties. So Ricky and his peers are gonna need bake sales, car washes and whatever else they can get away with to start shouldering pension obligations – pronto. Good for OweMalley; bad for everyone else.

There was one smidge of equity in putting some pension burden on counties. Pay rates are set locally and have a major influence on what the eventual obligations of the pension system will be. Having to face the long term consequences of agreements when they are negotiated should be a reality check.

Most teachers I know are or lean conservative. They are face to face every day with the problems caused by failed social engineering. They’d choose less centralized planning from state and feds rather than more. Their jobs have genuine challenges on many levels, as he noted. Most don’t have the time or zeal to seek out union leadership roles so those jobs go by default to those fired up by the union theme. Most would drop union membership and happily pocket the dues except for the couple of actual benefits they receive. Support for national or state level Dem agendas is low.

Regular citizens are having to do with less, often much, much less. Very few feel upper level county or city managers and administrators are squeezing pennies the way regular citizens have learned to. They need to seriously get with the belt tightening.

Anonymous said...

Thought is was all about the kids? Thought you got into for the love of teaching? health Insurance, working 9 months with multiple holidays, sick days, personal days, discounts at many local stores,and pay that is on average 25% higher than the local private sector job. Oh, and this thing call tenure? All of this and you complain about a pension, are you serious? Perhaps while you have been teaching the daily indoctrination to the kids, you have now believe it?

Anonymous said...

This area needs to understand that O'Malley = Mathias = Conway

They've had an 8 year run to make liberalism work and AGAIN proven that it doesn't!

If you want jobs to come back to the area you'll vote for Mike McDermott and Carl Anderton. It's just that simple.

Anonymous said...

Can't feel bad for the teachers. They sucked the tax payers dry for as many years as they could, then when the money runs out, they call foul. Kinda like going to school for 11 years, and finding out in your graduation year, you don't have the basic skills of reading, math, and basic logic to take care of yourself. Thank you teachers, oh, I forgot, it's all about the children!

Anonymous said...

Perhaps no one will go into teaching in the next few years. Sounds like folks will do just fine without them.