Our State Legislators wrung their hands during the entire legislative session fraught with concern about the $19 billion unfunded liability in the state pension system. Some, including former Governor Robert Ehrlich, advocated scraping the entire system and going with a 401(k).
Governor Martin O’Malley supports reform but has no idea of his own, that or no testicular fortitude to say what his idea is, and simply decided to wait for the commission’s proposal. His past solution to this vexing problem? Use federal stimulus dollars to the tune of $350 million and kick the can down the road all the while whistling and hoping no one noticed that nothing actually was accomplished. The problem is that we are now down the road and there aren’t any federal dollars stimulating us.
Even George Roche, a commission member, noticed that we need “to fund the liabilities much more aggressively.” He even wonders why the State doesn’t pay its annual pension dues in full, or even overfund them to solve this problem.
The only conclusion that The Guild can derive is that the underfunding of the pension is a lie. An absolute lie foisted on the State Workers by their elected leaders. The Guild realizes that these are strong words. And might even get a few panties in a bunch, but what else can one conclude when two thirds (that’s more than half for those in the inner city) of the additional revenue “needed” to save the pension is going to the State’s General Fund?
Michael Golden, a spokesman for the Maryland State Retirement and Pension System, noted that the additional 2% confiscated from the State Employees will generate about $185 million. With the pension needing only one third (that’s less than half for those in the inner city) of that amount why did the Legislature impose a 2% increase?
Strangely enough none of the reporting newspapers mentioned the disingenuousness concerning the rerouting of “needed” funds. Then again neither did AFSCME. I guess when it comes down to brass tacks they really don’t give a fat rat’s ass about the State Employee.
