"...a group that has such a long and distinguished record in identifying and addressing crucial issues affecting the governments of the city and state of New York." Federal Reserve Chairman Ben S. Bernanke
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.
Choices about public spending should be made using good data about the outcomes of investment, and citizens should be able to obtain this information easily in order to hold their lawmakers accountable. CBC's 2006 report "Giving Taxpayers More Bang for the Buck” analyzed the types of data provided in the MMR on agency operations and identified some serious shortcomings. The Mayor's office has made considerable improvement since this report was released, but more needs to be done.
The $1.6 billion in budget cuts announced by Mayor Bloomberg last month are the most recent example of the consequences of the national recession for local governments. New York provides a troubling example of how the inability to contain costs associated with a large municipal workforce imposes a greater burden on the most vulnerable populations, notably low-income children.
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