Public pensions drive up costs

By The Associated Press

Wednesday, July 19, 2006 9:43 AM EDT

ALBANY, N.Y. - Lawmakers want to give unionized public employees - who already get some of the best benefits in the country - more sweeteners to pensions that are helping fuel New York's high taxes, according to a study released Tuesday.
State lawmakers this year passed at least 36 bills to expand pension benefits for public workers. If they are all signed into law, local and state government costs would be driven up by at least $189 million this year, according to the Empire Center for New York State Policy.

Many of the bills were approved during the flurry of votes in the closing days of the six-month legislative session that ended in late June.

“These benefits add taxpayer costs at a time when we need to do everything we can to cut taxes,” said Robert Ward of the Public Policy Institute, the research arm of the Business Council of New York State.

“Everyone in Albany says we have to cut taxes, but actions like these make it all the less likely that will happen,” Ward said.

The fiscal watchdog group found the added expenses include about $84 million in one-time costs and $105 million in recurring annual costs. As of July 12, Republican Gov. George Pataki had signed at least one of the bills.

Under one bill, the state would pay a one-time cost of $70 million to offer new retirement options to correction officers and security personnel at mental hospitals.

Another bill would allow some public employees who are 55 years old to retire with full benefits if they've put in 25 years of service. Full benefits are now available only to those with 30 years of service.

Republican candidate for governor John Faso said that unlike prior early retirement proposals, the bill doesn't require abolition of the retiring worker's job.

“Generally these types of bills are used with the ultimate goal of reducing the state and local workforce and saving taxpayer dollars, but this appears to be nothing but a sweetener for the special interests,” said Faso, a former Assembly minority leader.

Neither Pataki, Republican Senate Majority Leader Joseph Bruno nor Democratic Assembly Speaker Sheldon Silver responded to requests for comment.

The Legislature and Pataki this year increased the state budget to $113.4 billion, up from about $106 billion in 2005-06. That's an increase in spending this election year unseen in 33 years.

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