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StumbleRobbing future to pay present: Retiree benefits
$17.5 million cut to funding previously committed to state employee programs to cost taxpayers dearly
Friday, April 11, 2008 | 2 a.m.
Among the victims of Nevada’s latest round of budget cuts will be the future generations who pay state employees’ retirement benefits.
The cuts announced Wednesday include $17.5 million the Legislature and Gov. Jim Gibbons had committed to reduce the state’s future bill for retiree health costs.
The budget reduction will increase the long-term bill for the state’s plan by far more than the $17.5 million saved in the short term, officials said, though by how much more is unclear.
The most recent estimate for the state’s unfunded liability for the program is $3.3 billion. But that estimate came after the state had committed to setting aside and investing $53 million to help defray future costs.
A new liability figure won’t be calculated until near the end of May, said Jon Hager, chief financial officer for the state’s Public Employee Benefit Program.
But the result of this week’s budget cut could be dramatic. In 2006, before the Legislature set aside the money to pay down future costs, the state’s unfunded liability was estimated at $4.1 billion. The $53 million commitment, however, reduced the state’s liability by $800 million.
State Sen. Bob Beers, R-Las Vegas, has a blunt explanation for the cut.
“Our grandchildren don’t vote,” Beers said.
The additional budget cuts announced Wednesday by Gibbons and legislative leaders rely heavily on deferring one-time budget expenses to deal with a $900 million-plus shortfall.
A spokesman for Gibbons said the decision to pull back some of the prefunding for retirees’ benefits was made to ease cuts in more immediate services.
“Obviously we have to balance long-term needs with immediate needs,” said Ben Kieckhefer, the governor’s spokesman. “We hope to go back to find additional funding when it’s economically feasible. Right now that $17.5 million really is needed to fill this current gap in the budget.”
Health benefits for retired government workers have become a national problem as people live longer and health care costs skyrocket. New accounting rules for governments require public agencies to report future costs, causing concern that Wall Street will downgrade credit ratings and make borrowing money more expensive.
But Kieckhefer said Gibbons’ office is confident the money already set aside will be sufficient to preserve the state’s credit rating.
State governments nationwide have pledged at least $2.73 trillion in pension, health care and other retirement benefits for employees, according to a study conducted by the Pew Charitable Trusts’ Center on the States.
“In the best of all possible worlds,” states should be setting aside money to invest to meet the future costs, said Richard Greene, the study’s co-author.
“We don’t live in the best of all possible worlds,” Greene said. “Frequently, rational decisions have to be made in any given year to take care of short-term needs versus defraying long-term liabilities.”
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Ive always thought SS would be dried up by t he time I got around to needing it, now I have no doubt.
JJ
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THEY ARE SELLING ALL YOUR WATER RIGHTS THIS WEEK.
And it is only costing the federal government $247,300,000.00 in free grant money just passed for 2008 water polution control act.
The State of Nevada (State) hereby submits its Intended Use Plan (IUP) as part of its annual application
for a Capitalization Grant under Title VI of the Water Quality Act of 1987.
This IUP serves as the planning document for managing the FY 2008 allocation of grant funds for the
State Revolving Fund (SRF).
The State received one Capitalization Grant in 2007 in the amount of $4,242,300 of which $4,072,608 will be for
loans. The 2008 Capitalization Grant, in the amount of $5,207,300 of which $4,999,008 will be available for
loans. The 2008 grant is expected in August 2007. Additional funds for loans will consist of match bonds, which
are general obligation bonds, as well as carry forward funds and leveraged bonds as needed. The 2007 and 2008
match bonds will be derived from the Series 2003H Water Pollution Control Revolving Fund Leveraged Bonds.
The FY 2008 project priority list includes approximately $247,300,000 in proposed projects.
Washoe County
CS32-0102
Washoe County
CS32-0701
Washoe County
CS32-0702
Washoe County
CS32-0411
Washoe County
CS32-0413
Washoe County
CS32-0111
8.1.1 The State will enter into binding commitments equal to at least 120% of each
quarterly grant payment within one year after receipt of the payment;
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Anyone here remember a couple of years ago when the Governor had Hundreds of Millions to send back to all registered car owners in this state?
What happen to common sense and budgeting? That money should have been put in the Rainy Day Fund for times like this.
This is nothing new, good times, bad times. Have to plan for those bad times instead of trying to buy off people and make them happy by sending them a couple hundred dollars to blow.
In just over ONE YEAR this idiot in the Governors Mansion has wreaked havoc on this great state.
He has so many friends on the payroll that need to go. So many little pet projects for people. This guy can't think for himself. Get him a can of pudding and put him in the corner. Let's get someone in that can govern.
Republican State Senator Bob Beers said it bluntly "Our grandchildren don't vote" - which proves my point that such radical, right-wing, neo-con, nut-case, selfish sociopaths are simply incapable of compassion - and they are cowards!
Instead of doing the right thing and have the courage to be candid about our generation carrying our fair share of the burden - these lying leaders would rather put our children and grandchildren in debt than raise a single cent of tax - that makes them COWARDS!
Guys like Gibbons and Beers ARE the problem! They run on "no new taxes" pledges and appeal to the selfish and feed the greed of the wealthy - then do all they can to undermine government and cause it to fail - which makes them TRAITORS!
Of course, no matter how bad things get for the rest of the vast majority of the population - Gibbons and Beers children and grandchildren will be fine as they'll inherit vast fortunes of wealth to maintain their upper-class status and be able to continue their predatory practices on the long suffereing middle-class and poor.
The Republican philosophy of "a trickle-down economy" under Reagan since 1980 has been nothing short of a sham, a shell game and a political ponzi scheme based on BULL! It's now been 28 years, nearly 3 decades of decadence, how long are we going to allow these lying, cheating, thieves to get away with playing with platitudes and pandering before we declare the Republican Party leaders for what they are - economic terrorists and enemies of the state of Nevada and the people?
COWARDS - TRAITORS - PREDATORS!
I say we VTBO (Vote The Bums Out)!
HEY JOHNATHON, KISS MY REPUBLICAN ASS!
VOTE REPUBLICAN, WE CAN'T ALL BE ON WELFARE!
OOPS, JOHNATHON THINKS WE CAN. MUST BE AN OVERPAID GOVERNMENT EMPLOYEE.
DESPITE THIS HUGE PROBLEM OF OVERPAID PUBLIC EMPLOYEES, LAS VEGAS AND CLARK COUNTY HAVE HIRED 4100 NEW OVERPAID GOVERNMENT EMPLOYEES.
FROM A PREVIOUS SUN ARTICLE:
William Robinson, an economics professor at UNLV, said he does not understand how governments can continue to offer plum pension plans without incurring the public's wrath.
"If you work for the government and you start at 21 and retire at 51 with about an 80 percent pension, it's hard to justify that," he said.
"I wonder whether the state in the long term needs to be in the pension business."