Sunday, October 11, 2009
Pension fund contributions burden local governments (10-11-09 Freeman)
According to this article published in the Sunday Freeman, "City of Kingston officials say payments to the state pension system are expected to climb next year by $900,000 from the current $2.2 million." All projections indicate that the City of Kingston budget, which is very bad this year, will be even worse next year. If you think about it, asking city and county candidates to pledge "no increase in taxes" is a very MILD request compared to the LOOMING TSUNAMI of contractual raises, steeply rising pension obligations, drop in sales tax revenue, drop in tax collections, and drop in mortgage receipts. Drastic budget cutting is called for, not an increase in "already too-high" taxes. The Firefighters' union is proposing to forgo this year's raises and exercise stipends for a savings of $250K. This is a start. However,if the unions don't budge more, to the tune of $1Million for each union, inevitable MUNICIPAL BANKRUPTCY will be knocking at our door.