Passing the pension time bomb in New York State

Employer contributions to the New York State Teachers’ Retirement System (NYSTRS) were 6.19 percent of covered payroll  in 2010, but are expected to hit 8.62 percent next fall and 11.11 percent in 2012.  While NYSTRS has not projected its pension rates beyond next year, our recent Empire Center report on “New York’s Exploding Pension Costs” estimated that the contribution could hit 16 percent of payroll in 2014, and 25 percent by 2016.

This problem is not going away any time soon.  In terms of "unfunded mandates" that are propelling unsustainable tax increases for New Yorkers, pensions are huge.

The Torch

Average school budget increase in New York expected to be at or below 1.4%

The Journal News offers a snapshot of what New York State public schools are planning for their 2011-12 budgets.

• districts plan layoffs, salary freezes, program cuts or increases in tax levies — or some combination
• districts are working very hard to hold down the tax increases
• About 300 of New York's school districts have reported so far that they plan to eliminate a total of nearly 16,000 jobs
• In some school systems, unions have agreed to freeze salaries and make concessions "to help preserve programs and reduce the number of pink slips,"
• the average spending hike for the 2011-12 budgets will be at or below this year's 1.4 percent
• Gov. Andrew Cuomo has been urging schools to use their reserve accounts
• the people of this state are saying, 'I need a cap on my property tax because you're taxing me out of my home.'"
• school districts are saying they understand the fiscal realities

For the first time ever, my family is discussing in real terms our options for moving from New York in order to escape the high taxes.  My husband grew up here and we moved back to this town 24 years ago, but we believe taxes have been growing at an unsustainable rate.

You can read the entire article after the jump.

Update on health care costs paid by employees

Updated information to my February 21 post.

PERCENTAGE OF HEALTH INSURANCE PREMIUM COSTS PAID BY EMPLOYEES

Employer category	Percent of premium paid by employee for individual coverage	Percent of premium paid by employee for family coverage
Local school	6.5%	6.5%
Wisconsin public schools	6.3%	6.3%
New York State	10%	25%
Private sector average 2008 *	16%	27%
Private sector average 2010 **	19%	36%

Wisconsin Governor Walker:

However, the difficult reality is that healthcare costs and pension costs have risen dramatically and that has created a benefit system that is simply unsustainable. Government benefits have grown while so many others in the private sector have seen their benefits adjusted in order to protect jobs.

* Kaiser Family Foundation 2008 Survey
**  Kaiser Family Foundation 2010 Survey

Related:
http://www.politifact.com/truth-o-meter/statements/2011/feb/21/george-will/george-will-says-wisconsin-governors-benefits-prop/

Found at Instapundit