Bigger pension hit could drive up city taxes 10 percent

May

The anticipated increase in taxpayer subsidies to the state pension system will mean an average property-tax increase of 10 percent or more by 2011 in most cities, the head of the state Conference of Mayor said today.

“The bigger the city, the more public-safety expenses, the higher those percentages will be,’’ said conference executive director Peter Baynes.

Comptroller Tom DiNapoli announced earlier today that an increase in pension contributions from taxpayers by almost 50 percent may be needed starting in 2011 because of record investment losses by the pension fund’s investments last year.

Baynes said the Legislature should adopt a proposal by Gov. Paterson to raise the minimum retirement age for public workers and make them contribute to their pensions for their whole working careers. Now they don’t make contributions after 10 yers on the job.

This entry was posted on Friday, May 29th, 2009 at 1:38 pm by Jay Gallagher.
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One Response to “Bigger pension hit could drive up city taxes 10 percent”

Jeffrey B Harris June 1st, 2009 at 6:54 am
Thank you for reporting on this important topic.

I am completely perplexed by the governor’s automatic conclusion that New York State taxpayers must make up the pension fund shortfall. Does any rational human being think that would be FAIR ?? The New York State Constitution (Article V, paragraph 7) does not specify that taxes must be increased in order to meet the contractual obligations of state workers pensions. Why not reduce the size and scope of spending in Albany to make up the shortfall?? This reflexive response to lay the burden on taxpayers is all too familiar and needs to be stopped now.

I have lived, worked, and paid taxes in New York State nearly my entire life. I have contributed to my own IRAs and 401(K) plan over those years. My retirement savings is down by 60% in the last 2 years. The amount of money that I have invested for my retirement
through 2009 is exactly at the same level as what I had saved through 1997. I have lost 12 years worth of retirement savings during this economic downturn.

Why in God’s name should I (and people like me) have to pay for the loss of state workers pension funds?? What about my lost retirement?? Under Governor Paterson’s logic, shouldn’t someone pay for MY retirement fund losses???

The suggestion that New York State taxpayers must make up the pension shortfall is an insult to every citizen’s intelligence. Those who rely on state pension are going to have to live through the downturn just like the rest of the citizens of this state. They are going to do as I have done, and tighten the belt on spending, work a few years longer, and possibly take a second job.

Under NO CIRCUMSTANCES should any taxpayer be required to dip further
into their own income stream to not only make up for their own investment losses, but, also to rebuild the losses suffered by the NYS Pension Fund.

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