Pension costs to tax local governments Budgets likely to exceed state cap Sunday, August 28, 2011 By Michael Lamendola (Contact) Gazette Reporter
Retirement system costs for local governments in 2012-13 will exceed the state’s newly imposed 2 percent property tax cap, meaning some property owners could see tax increases of 4 percent to 5 percent next year, according to officials.
By the numbers According to the state comptroller’s office, the following are employer contribution rates toward the retirement systems: - 2007 — 11 percent for ERS, and 17 percent for PFRS, for a total of $2.7 billion. - 2008 — 10 percent for ERS and 17 percent for PFRS, for a total of $2.6 billion. - 2009 — 9 percent for ERS and 16 percent for PFRS, for a total of $2.5 billion. - 2010 — 7 percent for ERS and 15 percent for PFRS, for a total of $2.3 billion. - 2011 — 12 percent for ERS and 18 percent for PFRS, for a total of $3.6 billion. - 2012 — 16 percent for ERS and 22 percent for PFRS, for a total of $4.9 billion. - 2013 — 18.9 percent for ERS and 25.8 percent for PFRS, for a total of $5.5 billion. “Municipalities will be able to raise the property tax levy beyond 2 percent without an override because some pension costs are exempt,” said Peter Baynes, executive director of the New York State Conference of Mayors and Municipal Officials. “We have reached the conclusion that pension bills for cities will rise the most, and their exclusions will be the most, and we estimate the actual cap will be between 4 percent and 5 percent.” Baynes said municipalities will be hard pressed to adopt budgets without having to override their tax caps. “But that is not going to happen. What is happening is that municipalities are reducing services. The challenge for local government is to balance the need for essential services with the public’s desire for lower taxes,” he said....................>>>>..........................>>>>................http://www.dailygazette.com/news/2011/aug/28/0828_pension/
How did they come up with a 2% tax cap EXCEPT for pensions????
Quoted Text
“Municipalities will be able to raise the property tax levy beyond 2 percent without an override because some pension costs are exempt,” said Peter Baynes, executive director of the New York State Conference of Mayors and Municipal Officials. “We have reached the conclusion that pension bills for cities will rise the most, and their exclusions will be the most, and we estimate the actual cap will be between 4 percent and 5 percent.”
What a bunch of bullcrap!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
now a large amount of the unemployed are from the government arena.....guess what? maybe they should have thought of that when they were all talking to the unions and making FUTURE promises of which they F'EN knew nothing about---BECAUSE THEY DIDN'T CARE....
now they are suing the banks for bad practices of which THE ELECTED KNEW ALL ALONG AND ALLOWED....why? to collect taxes for their so called constituency and their guaranteed pensions, while at the same time skimming.......
oh, it's a machine alright....with ALOT of grease and cogs.....the only problem is THEY ARE BAD MECHANICS....
SHOW ME THE CAFR
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Funding The System’s funding objective is to meet long-term benefit promises through employer contributions that remain level as a percentage of member payroll. Annual employer contributions are determined on an actuarial basis and actual employer contributions are the greater of a minimum contribution of 4.5 percent of member payroll or the actuarial contribution. The System remains well-funded, and a detailed discussion of its funding is provided in the actuarial section of this report. Investments Like all investors, the Fund has seen the value of its assets decline as a result of the downturn in the global financial markets. However, while the Fund’s value has declined, our well-diversified portfolio has helped protect assets better than most public retirement pension funds. Significantly, the Fund has outperformed most of our peers during the ongoing economic downturn and, most importantly, at no time have benefits been in jeopardy. In the past year, the Fund returned (26.3 percent.
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
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