Now that the latest education finance data is out, I’m prepared to write a post on the near and intermediate term future of education in NYC (and perhaps elsewhere). Thanks to a couple of decades of retroactive pension enhancements, pension underfunding, and inflating the problem by sweeping it under the rug, it is not a future of “reform” or “improvement” no matter how anyone chooses to define it and no matter what one’s education politics. It is a future of degradation, one I have already described in detail in this post, one that is well worth a read.
Basically, you cannot have one year in retirement for each year worked without getting it at someone else’s expense. Huge if funded over a career, the cost of that kind of retirement becomes devastating if granted retroactively, and that is what the United Federation of Teachers has achieved twice. New York City’s public schools are going back to the 1970s, and this time they won’t be alone, because the same sort of irresponsibility has occurred in much of the country. Although elsewhere, taxpayer underfunding of promised pensions, rather than retroactive increases in those pensions, account for more of the damage. Underfunding, that is, by past taxpayers with future taxpayers holding the bag. So now what?