NIAGARA FALLS —
If you work or have worked in the private sector, you know retirement income — even retiring itself — is not a sure thing.
As a result of the recession, many retirees have seen their pensions slashed considerably (or, in some cases, eliminated altogether) or their 401(k) accounts downsized by 25 to 35 percent. Baby Boomers who are still working have felt those same pains and many have suspended their plans to retire by five to 10 years, maybe more, sadly realizing they’ll have to work well into their 70s due to the economic uncertainty of what was to be their Golden Years.
In stark contrast to that harsh reality is an alternate universe known as New York. Here, in the Empire State, decades of injudicious political rule have granted government workers special privilege, a retirement that is guaranteed, no matter the economic conditions. Unlike retirees from the private sector, they receive a set post-labor income. They can actually retire and comfortably — some of them extravagantly — to enjoy the twilight of their lives.
In order to ensure that happens, others have to assume their risk, namely the taxpayers. In trying financial times like these when the return on the stock market just isn’t there, thus yielding lower returns for the state’s pension fund, our assumption of risk becomes even greater.
State Comptroller Thomas DiNapoli delivered such a sobering message recently when he told New Yorkers that the pension cost for state and local governments will escalate by 37 percent in 2012. That’s because municipalities will be forced to contribute to the state pension fund a value equal to 16.3 percent of total salary. Mind you, that 37 percent increase is based on a 2011 versus 2012 comparison.
Earlier this year the input rate was “only” 7.4 percent of payroll (it’s set to be 11.9 percent in early 2011), meaning that come 2012, taxpayers at the local level will dedicate more than twice what they had been for pensions just seven months ago.
Considering that labor is the No. 1 one expense for municipalities, DiNapoli’s new requirement will pose a significant budgetary hurdle for towns and cities across the state. Early calculations from DiNapoli’s office say that, in total, municipalities will be on the hook for $3.5 billion in pension funds for 2011 alone. That works out to be $200 from every man, woman and child living in New York.
Budget-conscious mayors and supervisors and tax-stung taxpayers thought 2010 was bad, but it will be a walk in the park compared to the coming years. Rochester officials believe pension mandates will bankrupt the city by 2015. Many other governing bodies speak the same (although behind closed doors) for they see that the economy is not set to grow quickly anytime soon and the federal government has overextended itself to the point that it will be unable to provide emergency funding to the states (it was the only thing that kept many afloat).
That means there are some truly creative and gut-wrenching choices to be made. Services will have to be cut and public workers will have to be let go, or so goes the logic. But, we aren’t talking about logical, reasonable people here. This is New York state, where logic is cast aside and things like gigantic guaranteed pensions are considered good government.
That said, it’s certain that cuts will be minimal and property owners will see disgustingly larger tax bills in 2011 and 2012 and possibly well beyond the decade’s half-way point if the economy continues to move along at a snail’s pace or falls into a double-dip recession. Considering that New York’s property taxes are already among the highest in the nation and in part responsible for our state’s long-running economic malaise and the mass exodus of residents from our borders, it’s frightening to think of what might be.
Bob Confer is a Gasport resident and vice president of Confer Plastics Inc. in North Tonawanda. E-mail him at bobconfer@juno.com.
Columns
Related Photos
-
Bob Confer
CONFER: New York’s pension crisis
- Columns
-
-
HAMILTON: Dandelions, parades, broken poles and people
There are still those remnants of the fading bouquets of floral tributes that still hang at that base of a tree on city hall’s lawn. It is near where, last year, from his shiny silvery cart, Melvin Johnson sold hot dogs and sausages to both city employees and passerbys while his tiny white dog excitingly yelped at anyone that came near.
- No Headline Provided
-
GLYNN: Gillibrand seeks help for prime bread-winners
A recent report shows that working mothers across the Empire State earn nearly 15 percent lower pay for the same work as men.
-
BRADBERRY: There really are spirits in the water
Over the centuries since it was “discovered” hundreds of millions of people have traveled from every corner of the world to visit Niagara Falls making it the most visited of the great waterfalls on the planet.
-
CONFER: The reality of rationed health care
The ongoing debate over Obamacare has brought to light the concept of rationed healthcare. Opponents of health care reform keenly point out that while the bill never explicitly calls out rationing, it features certain provisions that will lead the markets to adjust to strict federal demands and, therefore, dispense certain procedures in smaller amounts or not at all. Because of it being the first time that the subject has really come up in public circles, most people, especially on the right, believe that rationing is something new. It’s not. The free markets have been practicing that for quite some time. I should know; with a 4-inch long, 1-inch wide scar running south of my belly button – and a couple of related scars around my groin – I could be the poster child for rationed health care.
-
CITY DESK: A regrettable error
We owe Carol Sensabough an apology.
Several weeks ago, the long-time reader and Niagara Falls resident sent a letter to the editor explaining that she took offense to some of the things written by a syndicated columnist, Stephen Dick. -
HIGGS: Niagara Falls' own West Side story
Trusello’s Bakery was on Elmwood behind the family home at 840 19th St. The family, Richard, William (Billy) and Sam along with two sisters, lived in the house.
-
GLYNN: Falls, Ont., rolls out red carpet for Wallenda
Before Nik Wallenda even started practicing his high-wire routine in downtown Niagara Falls, state Sen.George D. Maziarz, R-Newfane, had noted the warm welcome the tightrope walker received across the river.
-
HAMILTON: Civic ‘ParticipAction’ can work too
Back in the 1970s, our Neighbors to the North ran a national campaign called ParticipAction to encourage Canadians to get off their butts and do things for the sakes of their bodies.
-
GLYNN: Graduates find they’re in staggering debt
Countless senior citizens often gripe about something, sometimes even with good reason. Perhaps they should consider themselves fortunate, compared with the younger generation.
- More Columns Headlines
-
Police: Man Arrested in Etan Patz Disappearance
Hurricane Forecast: 15 Named Storms Expected
NYC Protests: the Revolution Will Be Scripted
Chicago U.S. Attorney Fitzgerald Resigns
Neighbors of Etan Patz's Suspect: It's Shocking
Search Intensifies for Missing Louisiana Woman
Bloomberg: Man Implicates Self in Etan Patz Case
NYPD: Person Implicated in Etan Patz Death
Raw Video: Fire on Nuke-powered Sub in Maine
Illegal Burn Suspected in Nevada Fire
Obama: 'We've Got More Work to Do'
Astrologers Predict Outcome of Presidential Race
Gulf Fishermen Reel From Seafood Troubles
Stuntman Makes Skydive Without Parachute in UK
FAMU Bandmates: Victim Volunteered to Be Hazed
Raw Video: Bride Who Faked Cancer Released
Raw Video: Tornado Appears During Wedding
Raw Video: Passed Out Man Robbed
Inquiry Hears Wider Secret Service Misbehavior
HP to Cut 27,000 Jobs, Save Up to $3.5B
