The Latest

Confirmation of Which Pension Plan Is Hugely Underfunded

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I just got an e-mail from the Center for Retirement Research at Boston College touting this report. The Center takes a very pro-public employee, pro-senior citizen position: there is "no choice" but to cut benefits for future employees and defer needed funding from the past to burden future generations of taxpayers as public services melt away. No way anyone who benefitted from retroactively enhanced pensions should be asked to sacrifice.  The title of the report is "Can State and Local Pension Plans Muddle Through."

Now I cited independent actuary John Bury's analysis of all state pension plans and major city plans that shows that the NYC Teacher pension plan is one of the most underfunded in the country. Now this from the CRR: assuming an 8.0% return (which is nonsense as I showed here), most plans have at least 15 years before running out of money under the termination concept and 30 years under the ongoing concept. "Notable" exceptions include eight plans mentioned, including the New York City Teacher's plan.

A Way Out for the MTA: Paying for the Other Rail Operating Costs

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In an overview of the remaining options for the MTA, I suggested that the buses and the payroll tax/taxi surcharge revenues be transferred to New York City and the counties, and the subway and commuter rail systems be required to break even on an auto equivalent basis – covering the cost of buying, maintaining, and operating the rail cars and collecting fares. This left other operating expenses to be covered by other revenues.

I had forgotten to mention paratransit, but that service should also be transferred to NYC and the counties, along with the buses, and along with paratransit reimbursement revenues. I’m not sure they could do a better job than the MTA, given that NYC has very high school bus costs despite having a much lower than average share of its children take school buses to school, in part because a well organized industry makes lots of campaign contributions to the New York City Council. But I’m not sure they could do worse either, given the insane cost of NYC paratransit per ride and the soaring share of people who somehow qualify. This post is about the maintenance of the infrastructure, and the stations.

New York has an on-time budget with a decrease in spending and no new taxes

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This a major victory for New York’s new governor.

Late budgets became a major problem in New York State for Andrew Cuomo’s father Mario, who had three terms running NYS, but the younger Cuomo has delivered!

It seemed highly doubtful when Andrew Cuomo vowed he would close the 10 billion dollar budget gap with no new tax hikes or borrowing, but that is exactly what he has done.

Gov. Cuomo and lawmakers announced agreement Sunday on a $132.5 billion spending plan, clearing the way for the state's first on-time budget since 2006.

The Gateway (Rumors of War and Coming to My Census Edition)

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I may be in the minority here, but I am firmly of the belief that the fights over the public and party office vacancies in the 54th AD might turn out to be much bigger than one Assembly seat and one District Leadership. It might very well the first shot in the revolution–or not; Ed Towns might very well just be making a play of some sort.

I think that might not have been Towns original intent, but like in “Duck Soup” I think someone’s just been called an “Upstart” and the road to war may now be irreversible.

“The Rape of Bay Ridge” (More Thoughts on Reapportionment)

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As I’ve noted before, the fact that my house, practically on the shores of the Gowanus Canal, shares a councilman with Greenpoint is not, in and of itself, proof that the lines for Brooklyn City Council districts are preposterous.

Districts have to end somewhere and, even under the fairest of plans, some neighborhood is going to get split in a manner which will seem unfair to those so victimized.

That being said the lines are ridiculous.

A Few Thoughts on Reapportionment

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As we all know, the figures are out and everyone with the software is free to draw their own fantasy reapportionment maps.

Me, I’d prefer to concentrate on realities, and my intent is to dwell upon them, no matter how unpleasant, as I embark upon an occasional series on the topic of Redistricting.