The NY Teachers Union sees the real fiscal cliff ahead in their pension plans as reported here. A bulletin from the New York State Teachers Retirement System suggests that taxpayers and students are in for a nasty one-two punch. Schools, the retirement system recently announced, will have to fork over as much as 16.5 percent of their payrolls next year — a whopping 40 percent jump — tokeep the pension fund sound. Of course, this is only a small step to 54.2% of payroll required as reported earlier, but they can’t totally shock the NY taxpayers.
The Mighty Cuomo’s 2% tax cap on local and school taxes was just a delusion for the gullible in NY, as the clever Cuomo had exempted from the 2% cap, tax increases due to pension contribution increases. This year, for example, Gov. Cuomo signed a wholly inadequate pension reform that won’t provide meaningful relief for years. So far, only the NY Teachers Union sees the cliff ahead. Wait till all the other NY Government Unions see the cliffs and need their fixes too.
Will Helicopter Ben, aka the Pay Master for Barack’s bank cronies, be dropping money into the teachers pensions and then the other NY government employees pensions? The Teachers Union, this time, only demands 16% of payroll, or a 40% increase in pension contributions, but really 54.2% of payroll is required, instead of the present 11% of payroll or a 393% increase.
Helicopter Ben, Helicopter Ben, Helicopter Ben, the desperate but beloved NY teachers are crying out. But, wait NY teachers, Cuomo had passed up a Obama/Hurricane Sandy photo-op, while the craven Christie took his place for the photo-op Christie knew when to kow-tow, grovel and kiss-up, because his pension cash needs are even worse than Cuomo’s. Must the Mighty Cuomo borrow the money, which could never be paid back. Are there enough suckers left to buy Cuomo’s bonds without a significant increase in interest rates? Did Fat Christie triumph over Prince Charming? Will Obama dispatch Helicopter Ben for NY and NJ equally?
This was just the NY Teacher Unions waking up, but similar State and local pension disasters are festering all over the country.
For your enjoyment: the NEA’s own pension plans