Monday, February 25, 2013

CBC To DiNapoli: Reject Pension Smoothing

     Pension smoothing has some new enemies with a citizens budget watchdog group urging rejection of Governor Cuomo's plan on the basis it will undermine future solvency of the plan that covers all state workers and employees of local governments.
     The Cuomo plan has its supporters including the NYS Conference of Mayors.
     Meanwhile, a group of county executives from around the state are urging the Governor to be more assertive in pursuing mandate relief for local governments.
      Sounds like a little posturing for 2014 may be happening.
CBC To DiNapoli: Reject Pension Smoothing

5 comments:

Mike Flynn 'Middle Class Mike' said...

The bottom line Mr. DiNapoli is that your prescription is tough medicine for Cities:

If you and others support the view that Pension funds would be in jeopardy without a guarantee to make up for lower contribution rates. Gov. Cuomo contends that it depends on how you plug in the numbers, as to how the long term funding viability of Pension funds will be effected over the next 25 years. Well if you’re right Mr. DiNapoli and Governor's wrong on the numbers, Cities like Syracuse are going to have to make long overdue decisions to cut costs? The Governor is still willing to send in advisors to any City in NYS to provide economic advice, but in the end the Mayors have to bite the bullet and find ways to cut City budgets.

It's no coincidence that currently facing the need for budget cutting in NYS Cities, Dean Skelos and the Republicans are now looking to rescue Cities in trouble with Mandate relief legislation. This is a thinly disguised attempt to get Albany to pick up pieces of local budget costs problems. The reality is Republicans talk a good game, but are reluctant to make the Cities economically accountable. Governor Cuomo needs to stick to his position that Cities can get economic advice from Albany, NY, but that any City bailouts have ended for NYS Mayors, who lack the backbone to make the tough budget cutting decisions.

It's easy for you Mr. DiNapoli to say Pension Smoothing is an accounting gimmick that would leave pension funds exposed, but in the end it's likely the last window of opportunity that a City like Syracuse, NY had to get their house in order. Mayor Miner like other Mayors will now want mandate relief on their terms; along with other revenue relief from Albany, NY. Governor Cuomo has suggested that it's not Albany, NY's job to bail Cities out, but instead he'll encourage those Cities with shrinking tax bases, to make the necessary decisions to achieve a balanced budget and the foundation for future growth in the coming years. Sticking to his position on this may be the most important thing he accomplishes as Governor of NYS.

Mike Flynn 'Middle Class Mike'

Anonymous said...

It's a weak DEM that [Cuomo]has to fear...as [Cuomo]is even weaker.
Making sense to ya yet Mikey?

Anonymous said...

"To make the necessary decisions" blah blah blah. In other words, Mikey advocates that our cities borrow, lie, and steal from the kids just like the state and federal government are doing to make things SMOOOOOTH. Time to wash the brown coat.

Anonymous said...

Pension smoothing is pension raiding.

Cuomo has a long history of handling money like MC Hammer.

Cuomo was instrumental in our financial meltdown. As director of HUD he forced banks to ignore the long proven methods of evaluating home loans.

As AG Cuomo never gave settlement money back to victims, instead he raided the settlement money like he want to do to our pensions funds.

Even his fellow democrats are having trouble holding their noses and pretended Cuomo doesn't stink.

Mike Flynn 'Middle Class Mike' said...

Anon 11:23

Try reading my comment again, no where do I suggest that, in fact I suggest the opposite, manage your budget and stopping looking for a bailout from Albany, NY is my suggestion to Mayors. In this Republican Senate District, it's time to stop looking foto the Governor for a hand out; and practice what you preach.

Mike Flynn 'Middle Class Mike'