Few local governments are signing up for a dubious program of paying pension costs...a program that allows towns, cities, villages, counties and even the state itself to pay current year obligations over ten years at an interest rate of 5%.
This is such a wicked case of kicking the can down the road and at a pretty high rate of interest.
Pension obligations are rising sharply as the system had been predicated on ridiculous assumptions on the investment growth of the fund. The 2008 stock market dump is showing up now in the rates charged participants on behalf of employees.
The Paterson administration offered up a typical Albany answer.
Local governments are wise to avoid this scheme to prop up a system in need of serious reform.
Local government leery of pension borrowing plan theithacajournal.com The Ithaca Journal