Valin Posted July 30, 2014 Share Posted July 30, 2014 City Journal: Across New York State, underfunded pensions are clouding the future. Steven Malanga Summer 2014 Municipalities across New York State face myriad financial problems, ranging from flat economic growth and stagnating tax revenues to expensive state mandates. It’s not surprising, then, that dozens of cities, counties, and towns, especially in upstate New York, have embraced a program allowing them to postpone billions of dollars of contributions into the state’s pension system. Unfortunately, the future cost may prove tough to repay. In the last fiscal year, 139 New York municipalities deferred $472 million in retirement-system payments, while the state government skipped another $937 million, according to state comptroller data. Since New York introduced what is euphemistically known as the “contribution-stabilization program” three years ago, governments have put off $3.3 billion in payments—apparently unconcerned that pension underfunding helped propel cities such as Stockton, California, and Detroit into bankruptcy. (Snip) Link to comment Share on other sites More sharing options...
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