As 2012 begins and the New York State Legislature begins a new session, its first priority should be reform of the financing and benefits of pensions for state and local employees. Such reforms are urgently needed because (1) the relatively high cost of the current system places New York at a competitive disadvantage, and (2) these costs have been growing and are projected to continue growing, making a bad situation worse.
The CBC today released a policy brief titled “The First Priority in the New Year – Pension Reform.” It compiles the latest financial data on the rising cost of pension obligations of government entities in New York State, including New York City, other localities and the MTA, and, in doing so, underscores the case for comprehensive pension reform to alleviate financial burdens statewide.
Labor costs are one of the "big 3" categories of spending, along with school aid and Medicaid, that drive the size of the State budget. Yet Governor Paterson's Executive Budget included an unspecified plan for achieving savings from organized labor - a target of $250 million is included in the financial plan along with a menu of possible options for the labor unions to consider.
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