12:00 am
November 1, 2013
In my column Wednesday, I take a deeper look at the pension lawsuit before the state Supreme Court. Emily wrote about the hearings, which involve union challenges to the Legislature’s repeal of gain-sharing and the Uniform Cost of Living Adjustment. The implications are serious.
If the court rules for the public employee groups contesting the legislation, the increased burden to taxpayers amounts to billions of dollars over the next 25 years.
The state budget would be immediately impacted. According to the state actuary, undoing the reforms would cost the state $766 million in the 2015-2017 budget cycle. Local governments would see costs climb $570 million.
My conclusion:
Gain-sharing and the UCOLA were costly mistakes. Now they’ve been corrected. In the future, legislators should avoid similar enhancements. No political or fiscal good comes from them. And the court should allow the Legislature’s correction to stand.
The WFSE disagrees, with me and with the state’s major editorial boards. The Court has not announced when it will issue a decision. The sooner the better.
Categories: Budget , Categories , Current Affairs , Education.