Over the past decade, no group of state or local taxpayers in the country has absorbed -- i.e., actually paid -- a bigger increase in annual pension costs than New Yorkers. Tax-supported contributions to the Big Apple's municipal pension funds have risen by over 1,000 percent, from $615 million in fiscal 2000 to $6.6 billion in fiscal 2010. Pension contributions for fiscal 2011 are estimated at $7 billion, and for fiscal 2012 they are projected to rise to $8.4 billion, or more than 20 percent of projected city tax revenues.
While stock market losses played a big role in the trend, a new report from City Comptroller John Liu's office confirms that roughly half of New York's enormous run-up in pension costs was self-inflicted -- and thus avoidable.
Unfortunately, Liu (a strong political ally of municipal labor unions) seems unable or unwilling to draw the obvious conclusion from the facts he's just laid out. After detailing how city taxpayers were soaked for roughly $15 billion in added pension benefits and higher fees over the past decade, the comptroller concludes: "New Yorkers should be proud that in spite of tough economic times the City has appropriately funded its pension liabilities and, with normal investment returns, the pension funds should become stronger in the years to come."
Why does this not make us feel better?
While stock market losses played a big role in the trend, a new report from City Comptroller John Liu's office confirms that roughly half of New York's enormous run-up in pension costs was self-inflicted -- and thus avoidable.
Unfortunately, Liu (a strong political ally of municipal labor unions) seems unable or unwilling to draw the obvious conclusion from the facts he's just laid out. After detailing how city taxpayers were soaked for roughly $15 billion in added pension benefits and higher fees over the past decade, the comptroller concludes: "New Yorkers should be proud that in spite of tough economic times the City has appropriately funded its pension liabilities and, with normal investment returns, the pension funds should become stronger in the years to come."
Why does this not make us feel better?
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