Sound Politics: State public pension quagmire

May 01, 2006

State public pension quagmire

The AP's David Ammons devoted this weekend's column to the state's mutli-billion dollar public pension deficit: "State walks quietly into pension morass".

As Washington's graying work force begins to retire, the projected payout for the Public Employees' Retirement System 1 exceeds the system's ability by at least $4 billion.

At least Mrs. Gregoire¹ is honest about where this is headed:

“Virtually every state is grappling with this,” she said, adding that some states are so mired in unfunded pension obligations that they'd have to file for bankruptcy if they were a private company.

And at least Senate Democrat "Budget" chief Margarita Prentice is honest that her caucus will not protect the taxpayers from the unions' demand to retain their rapacious "gain-sharing" windfall:

Prentice said it's very hard for legislators, particularly Democrats, to cross the labor unions. It's hard to even put it on the table for discussion, even though it's clear that the pension liability will be in direct conflict with salary and benefits and appropriations for state services that unions strongly support, she said.

¹ Raise your hand if you think Mrs. Gregoire isn't going to raise taxes to help pay for this.

Posted by Stefan Sharkansky at May 01, 2006 08:52 AM | Email This

Comments

1. The unions first destroyed the U.S. automakers, then the U.S. education system, and then the U.S. airlines. Next they are going to bankrupt the states.

I'm all for fair wages, but the government unions are out of control and unfortunately, no politician on either side of the isle is going to attempt to fix this problem until it's too late.

Posted by: johnny on May 1, 2006 09:36 AM

2. "IT's hard to cross the labor unions..."

Yah, when they fund your election campaign, this is what happens!

Posted by: Misty on May 1, 2006 10:51 AM

3. They funded the campaigns and counted the votes.
If I wasn't going to have to be taxed to line the pockets of union reps, I would be rolling on the floor laughing, but sadly, It is just one more cut in the death of a thousand cuts.

Posted by: Jason Woodruff on May 1, 2006 11:06 AM

4. Think about it Unions are special interests that control the Democrats. Look at how the Governor said she would fire anyone not joining the Union. Look the people mean nothing. The unions are running the show.

Posted by: David Anfinrud on May 1, 2006 11:21 AM

5. Ahhh,

It only took a couple months, but here we are, full circle on the topics here at SP.

I took the name Rossi Too the first time this pension mess came up then...for perhaps if Dino Rossi hadn't made it a unanimous vote when he was in the Senate we might not have this crisis today.

Funny, Rossi and Mary Lane are very quiet about Rossi's voting record on this. I guess when you contribute to the problem, it's best left unsaid.

Yeah, it's easy to blame the Democrats for all the woes in this state...but the research indicates that the Republicans (and sore loser Rossi) had just as much to do with the pension crisis as the D's.

As for blaming the unions...why? Employees were hired with the promise of a pension. All the unions are doing is protecting that promise.

If you took a job with the promise of a benefit, what would you do if that benefit just up and disappeared?

Posted by: rossi too on May 1, 2006 11:30 AM

6. It was head chimp Chopp who tried the blame game on Rossi earlier this year.

Thurston Pundits- Tuesday March 14 blogging on the Zero's capital chat with head chimp Chopp.

"Chopp in the Zero's capital chat "The skipping of payments was started by Dino Rossi several years ago and we need to get caught up, but if you look at it we're doing quite well compared to other states and private companies, but we need to do better."

Frank has a highly selective memory since the Democrat controlled legislature voted to defer payments last session against an outcry by the Republican minority. "

Ah- but funny how Gregoire's budget surplus evaporated and the pension gap has not. DOOOOP!

Gregoire runs her budget much akin to someone with 50k in credit card debt owning a super sized TV with all the cable channels, a cell phone running 24/7, and a brand new car. "If you can't afford it,,,, you can freaking finance it."

Perhaps she can use gay marriage as a distraction from real problems until 2008??? It worked on Family Guy and they even goofed on the Young Republican club in the process.

Posted by: Andy on May 1, 2006 11:56 AM

7. One more reason why EVERYONE should go to the web site: FreeConscience.org and get acquainted with the facts of how the public sector unions have managed to insinuate themselves into such a huge position of financial and political power in this state and a number of others. The most important thing people can do: make all State employees aware of the many decertification campaigns that are out there, and how they can make their voices heard. WFSE and the other unions assumed we'd roll over and be their willing cash cows, but we hope to show them that they were wrong. But we need everyone to help spread the word!!

Posted by: Mickey D on May 1, 2006 03:15 PM

8. In the end, I really feel for my kids. My parent's generation fought to give us freedom, my generation (the boomers and specifically the ealy boomers) became so ... so... pampered by their parents, they lost all sight of fical reality in chasing the utopian "social responsibility & equality goals" and now my kids will pay for it in the long run.

mark my words here, we are in for a long bout of inflation in the future as the feds try to stave off world debts that rack up by the millions per minute. how the states will fix their mess is beyond me, as realistically, i don't think they have the legal option to bust out.

Posted by: dano on May 1, 2006 03:41 PM

9. The answer is to demand that public sector employees make the same sacrifices as private sector employees in terms of wage and benefit equalization. Case in point: the airline industry. I think that a voter initiative that would require states to
equalize these pay scales would be effective. Please refer to this analysis of Private vs Public payscales that was compiled by the EFF. The information in this link speaks for itself.

http://www.effwa.org/main/article.php?article_id=982

Posted by: Lynn on May 1, 2006 05:28 PM

10. "'The figures knock you over,' said Senate budget Chairwoman Marguerite Prentice. 'I mean, we're talking Bill Gates atmosphere here.'"

Does anybody have the slightest idea what that means? I am quite at a loss.

Posted by: stu on May 1, 2006 07:21 PM

11. Johnny.....you forgot american shipping.......
The unions first destroyed the U.S. automakers, then the U.S. education system, and then the U.S. airlines. Next they are going to bankrupt the states.

Posted by: DD on May 1, 2006 08:17 PM

12. Hey Johnny...

don't forget the railroads and the trucking industry!!!

Posted by: Pacific Grove Phlash on May 2, 2006 10:03 AM

13. Don't forget the textile industry. Remember the jingle about looking for the union label? Not only can you not find union labels, you can't find Made in America labels.

Posted by: Elaine on May 2, 2006 10:51 PM

14. This is cool, you have to try it. I guessed 74854, and this game guessed it! See it here - http://www.funbrain.com/guess/

Posted by: Allison Trump on May 23, 2006 01:35 AM