October 15, 2011
Pension Preview
Here is a compilation of various media reports on the flurry of activity related to the pension reform legislation which followed from the leak of the basic outline to Katherine Gregg of the Projo. ( Summaries from David Klepper and Scott MacKay).
0. Ted Nesi had this to say after his review of the leaked material...
If you picked up The Providence Journal this morning and were surprised by what you read, you haven’t been paying attention.The whole issue of the "leak" is a distraction, manufactured by politicians who bizarrely think that getting to participate in backroom deals is an actual perk of their job. (More: Dee DeQuattro).
1. The plan is to be officially announced on Tuesday. (More: Bob Plain, Ian Donnis).
2. There will be a series of public hearings on the bill, so there shouldn't be a see-it-first-on Tuesday afternoon, vote on it Tuesday night situation. David Klepper reports the bill will be over 200 pages in length. No word as of yet if amendments will be introduced and, if they are, how they will be handled. (More: Ian Donnis).
3. The last major delay in drafting the proposal may be due to concerns about whether and/or how locally run pensions will be addressed. The Governor says he wants the local pensions in the bill. The Treasurer is not sure that contractually-negotiated local matters can be handled in the same way as legislatively mandated state pensions. Pension reform advocates say call the GT and the Senate President, and tell them to include the local issues. (More: GoLocal Staff, Paul Edward Parker, Ted Nesi, Ian Donnis).
4. National Education Association Executive Director Robert Walsh has said he doesn't like what's he's seen of the proposal. No word from Governor Chafee on whether he believes that Walsh's public disapproval puts the General Assembly in the position of trying to "end around" the democratic governing process, by trying to pass a law that would not necessarily be approved by a board appointed from the Governor's political allies. (More: Ian Donnis, AP/WJAR).
OK, I'm only 3/4 serious about that last one.
The GA will reluctantly go along with 90% of these.
Not because of Smith Hill, but because of Beacon Hill. Casinos in Massachusetts means $140 million a year out of the coffers of the GA. Temporary casinos will be up in 12-18 months.
The GA simply can't come up with an extra $300 million a year for the union pigs plus $140 million a year from lost gambling. The money is not there and no amount of re-amortization will put a dent in the problem.
Like the workers comp fix 20 years ago the GA will make the right decision for the wrong reason-necessity.
Make no mistake-unlike the last 3 fake "reforms" the GA reluctantly gave Carcieri, these reforms are real and substantial. Could be better but a good start.