New York state, facing an $8.8 billion budget gap, at least has their fiscal crunch framed properly:
“There’s the tradeoff: supergenerous benefits for a well-paid public workforce that also enjoys pensions most people can only dream of, versus school programs, public safety and a functioning transit system.”
There is no guarantee that state will make the right call under union pressure, but at least New York isn’t doing a New Jersey:
“Gov. Jon S. Corzine is set to announce today that he will let counties and municipalities temporarily defer 50 percent of the payment due next April into the public employee pension system.”
What a great idea: lending money to governments who have frittered away what they had and expect them to get their act straight and repay the loans in future years.
Kentucky is, of course, ahead of the curve on that one.
Meanwhile, we should be watching with great interest any success New York has in dealing with unions.
Kentucky could save $130 million much-needed dollars by ending our prevailing wage practices on public construction projects.