Taking High Taxes and Underfunded Pensions to a Whole New Level
The budget disgrace
of Mike Napolitano.
A case for recall.
Not only did Cranston Mayor Michael Napolitano propose a FY 2008 budget that asked for a maximum tax-increase while offering no funding increase to the school system, but according to a Cranston Herald letter-to-the-editor from former City Finance Director Jerome Baron, the proposed budget also underfunds Cranston’s pension system…
The city’s pension for this year ending June 30, 2007, is properly funded at $21,723,021. The actuarially required amount for next year goes down by over $900,000 and continues to go down every year. Despite the huge Napolitano tax increase, the mayor is “under-funding” the pension budget by $1.7 million above and beyond the legitimate savings of more than $900,000. This is a giant step backward toward the ill-advised funding method of pay-as-you-go, under which instead of decreasing each year, the pension contribution will increase each year until 2024 when it will total over $26 million instead of the $19 million that would have been required if the responsible policies of the last four years had continued. The taxpayer will pay an additional $7 million in that one year alone, and get absolutely NOTHING in return.So if Cranston is underfunding its school system AND its pension system, where’s all the money going?
And if anyone from the state GOP is reading this, I’d like to propose this message campaign for the 2008 election season: “Mayor Michael Napolitano: The leadership you get when you pull the straight party Democratic lever.”