You cant borrow your way out of debt - pensions being mortaged !

[4248]

ALBANY – New Yorkers are living longer, which is good news for the state’s 19.7 million residents. For Gov. Andrew M. Cuomo, it’s triggering a budget headache.


The fiscal strain emerged in September, when State Comptroller Thomas DiNapoli factored in longer life expectancies for retirees in the third-largest U.S. public plan, as actuaries estimated that pensioners would be around at least an extra two years. The longer lives raised the $176.8 billion fund’s liability, boosting the 2016 pension bill to $355 million more than Cuomo had projected.


The added cost has Cuomo tapping a program allowing the state and its municipalities to borrow part of their annual pension bill from the fund with interest. Since 2011, Cuomo has used the tool to defer about $3.2 billion in payments. While he’d planned to exit the program in 2016, the budget he introduced last month includes borrowing $395 million for that year.


“Amortization takes volatility out of the state’s pension contribution costs and helps us maintain stability,” Morris Peters, a spokesman for Cuomo’s budget division, said via email.


Since Cuomo took office in 2011, he’s closed more than $12 billion in budget gaps, capped annual spending growth at 2 percent and won the state’s first four consecutive on-time budgets since 1977. The moves spurred Standard & Poor’s to award the state a AA+ mark in July, its highest since 1972. Yet the company also said the pension borrowing is swelling the state’s unfunded retirement liability.


Most municipalities are dealing with similar fiscal strains. U.S. state and local retirement plans are short at least $1.3 trillion because of investment losses triggered by the recession that ended in 2009 and insufficient contributions, according to Federal Reserve data.

Read the entire article - its your future pension - or will it be ?
http://www.buffalonews.com/news-wire...n-iou-20150215

[mikenold]

ALBANY – New Yorkers are living longer, which is good news for the state’s 19.7 million residents. For Gov. Andrew M. Cuomo, it’s triggering a budget headache.


The fiscal strain emerged in September, when State Comptroller Thomas DiNapoli factored in longer life expectancies for retirees in the third-largest U.S. public plan, as actuaries estimated that pensioners would be around at least an extra two years. The longer lives raised the $176.8 billion fund’s liability, boosting the 2016 pension bill to $355 million more than Cuomo had projected.


The added cost has Cuomo tapping a program allowing the state and its municipalities to borrow part of their annual pension bill from the fund with interest. Since 2011, Cuomo has used the tool to defer about $3.2 billion in payments. While he’d planned to exit the program in 2016, the budget he introduced last month includes borrowing $395 million for that year.


“Amortization takes volatility out of the state’s pension contribution costs and helps us maintain stability,” Morris Peters, a spokesman for Cuomo’s budget division, said via email.


Since Cuomo took office in 2011, he’s closed more than $12 billion in budget gaps, capped annual spending growth at 2 percent and won the state’s first four consecutive on-time budgets since 1977. The moves spurred Standard & Poor’s to award the state a AA+ mark in July, its highest since 1972. Yet the company also said the pension borrowing is swelling the state’s unfunded retirement liability.


Most municipalities are dealing with similar fiscal strains. U.S. state and local retirement plans are short at least $1.3 trillion because of investment losses triggered by the recession that ended in 2009 and insufficient contributions, according to Federal Reserve data.

Read the entire article - its your future pension - or will it be ?
http://www.buffalonews.com/news-wire...n-iou-20150215

If I am not mistaken these pensions are guaranteed by the NYS taxpayers! State pensions are also not subject to NYS income tax.

[4248]

If I am not mistaken these pensions are guaranteed by the NYS taxpayers! State pensions are also not subject to NYS income tax.

Money to support this fund is paid from taxes paid - meaning tax payer funded. So if your saying the State is guaranteeing tax payers will pay - your correct. But if tax payers cant afford to pay - then what ?

If the State/or local Governments defaults on the repayment of these "Loans/Deferred Payments" - then what happens ?

Its a gimmick to allow the State to borrow money against the fund - this to present a better view of the reality of inability to keep up with needed increases.


The article/report also states: "The fourth-most-populous state had 87.3 percent of assets to meet obligations, down from 105.9 percent in 2008, data compiled by Bloomberg show.

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Hey Mike, hows that Kentucky Fried Chicken thing going. From all reports they actually increased the amount of fumes by removing some of there discharge stack/chimmeny. I thought you and Joey were going to try and help out the Veteran who lives downwind ? Looks like KFC is thumbing their nose at you guys !

Oh - I forgot - you don't believe you need to get involved because your guys dropped the code that would have enforced air quality.

You haven't once brought up a resolution to help the taxpaying home owners and agree they should "Vote with his feet"

Also you didn't address your support of patronage hiring - and actually voted to give pension credit enabling time to a person who didn't actually work the amount of time required to be eligible for same. :confused:

I guess if you and fellow Board Members believe a Party guys intentions were there - you should just vote to give him hours so he can collect pension credits and some day collect a tax funded check.

How's that "Village Renewal thing Going" - Torn down any vacant homes lately without using tax dollars ?

How many vacant home owners have you chased down and dragged into court lately ? I mean not counting the live in taxpaying home owners who fell on hard times.

Are you gonna ad/answer all that in your campaign material ?