Following public policy in New York is like watching the same horror movie over and over again, while knowing that what appears on the screen will eventually happen to you, your children, and/or people you care about. Case in point, the long series of “screw the newbie, flee to Florida” public employee union contracts that both inflate the cost of public services and degrade their quality, while cheating younger generations.
Just 18 months ago, Bloomberg and the United Federation of Teachers (UFT) cut a deal, the state legislature passed it (virtually zero no votes), and then-Governor Eliot Spitzer signed it, to allow existing teachers age 55 and up to walk out the door into retirement up to seven years early, receiving unlimited untaxed health insurance from the city without assistance from federal Medicare for ten years rather than three, without contributing an extra dime. Those just under age 55 would have to pay more for just a few years before retiring seven years early, and receiving pension income free of New York City state and local taxes. Because that deal also cut the take home pay of future teachers by 5 percent for the first ten years of their careers, and because a historically (looking at long term data) impossible rate of return on pension assets was assumed, the undebated, unvetted, unannounced deal was described as costing nothing. Well guess what? This week, for the umpteeth time, we got the first phase of the inevitable second half of that deal – the screw the newbie and the children half.