The NY Times is reporting on an analysis by the NYS Comptroller's office that shows pension cost will triple - that is 3x - triple with a T, in the next few years.
“It’s alarming, eye-popping and unthinkable,” said Stephen J. Acquario, executive director of the New York State Association of Counties. “To manage that liability in the face of this deep decline in government revenues is going to be a challenge,” he said. “Where is this money going to come from?”Pension contribution rates are predicted to increase from 7.4 to 30.3 percent of payroll cost. Brace for impact!
“It is staggering,” said Peter Baynes, executive director of the New York Conference of Mayors. “The only way they’re going to deal with it is through property taxes and reductions in the work force.”The impact will be even greater for a city like Watertown due to a large percentage of staff being uniformed fire and police where pension cost are considerably higher.
And on the state level, well, there was unprecedented tax increases last year coupled with a huge increase in spending, they will have an even deeper hole. They will need to fill the fiscal bridge to nowhere gap left by the stimulus spending binge!
Read more: The pension bomb goes boom