Baldacci: Don't politicize pension shortfall

Reader comment:

Don't politicize this? Baldacci is so foolish. These lame democrat policies created this issue through politics to begin with. School budget cuts are necessary next year as the amount of money needed is doubled.... how could any reasonable individual sign up for a 'pay you later' obligation without a reasonable way to pay for it. Layoff 1/3 the government workers is the only rational solution.

If i was part of the democratic juggernaut that has created this shortfall I'd want to "not politicize it too"

Clinton Comptroller blasts govt workers benefits
http://dailycaller.com/2010/07/30/clinton-comptroller-blasts-government-...

No wonder the Progressives don't want to make this an issue

It is THE issue. One of MANY. The Governor's plea is just a lame duck "forgive me" and he leaves the State of Maine in more REAL debt along with his Democratic controlled legislative cohorts that ran this bill up for their own benefit to be re-elected can deal with. If the Governor is saying do not make this an issue..That is the CLUE... IT IS AN ISSUE. And one that our Democratic, Union Controlled, Social Engineer Types absolutly do not want in front of voters this November.

And.. I am saying this as a pensioned off state worker. Whom may loose some income as reform takes place. (Granted.. Not the state of Maine.. but one that is a lot worse off)

Cut Maine's budget by 2% a year and allow no emergency/supplemental budget unless you have a super majority or greater than required for normal passage. If you cut the budget by 2% a year for the next 4 year term or untilthe economy recovers - set benchmarks for spending based on unemployment and welfare rolls for example. And make dept head ACCOUNTABLE to the people.

This has been big news all week. How come the LePage campaign is not talking about this?

The politically hot Maine potato, the emotional issue, is the Maine Public Employees Retirement System (MainePERS).

There are about 71,000 people covered by the state retirement system, and rising.

The Constitutional requirement to fully fund the Maine Public Employees Retirement System was passed under the previous governor in 1995. Angus King’s real ‘Legacy’ may be to cause the bankruptcy of the State of Maine.

The largest unknown impacting the budget has become the demand by the MainePERS to fully pay the unfunded actuarial liability (UAL) by July 2028. That liability is about $4.5 billion.

This problem was exacerbated by not funding the UAL during the King and first Baldacci administrations, and by the drop in the market.

It is now too late to ignore the problem.

According to the Executive Director Sandy Matheson, the estimate for 2012 is $448, $468 million for FY 2013 million (up from about $300 million).

The dynamics of the pension’s portfolio could cause the demand to be has high as about $900 million in any given year.

Though he probably thought himself “remarkably forward thinking” at the time, this massive uncertainty and budget hole, is the ‘Legacy’ of Angus King.

Well, until 2028, or he completes his newest ‘Legacy’--wind turbines--whichever comes first.

LePage would be a fool NOT to make this a political issue. He needs to tell the people that the people in power raided the system. This is going to be a mess.

The Legislature's budget committee heard a report last week with the troubling news that just meeting the constitutional requirement to pay back the money owed to the fund over the next two years will be more than $900 million. That's over and above the $90 million needed to pay benefits to retired state workers and teachers.

The next governor and Legislature will have to address a pension liability that must be paid.

The answer to this dilemma is to get the people who get the benefits to pay for them. This will not happen because if the taxpayer actually knew what these people would get paid they would not only be irritated they would revolt. It is what is causing the problem at the federal level with Social Security and Medicare, but will be exacerbated with health care.

Originally, the plan to pay off the UAL was 9 years earlier in 2019. Baldacci realized that if he stretched out the payments until 2028 - we could spend more now. The final payments, by the way, balloon significantly.