Skyrocketing retiree health care costs will endanger every level of government in the future – including Mohawk Valley municipalities.
Everywhere, public employees are locked into rock solid retiree health care plans, experts say. Baby boomers hired in the 1960s and 1970s for jobs, including police officers, firefighters, teachers and garbage collectors, are retiring in waves.
And if local governments do not set aside money now for these costs, they may have to make so many cuts to future services that they would essentially be decimated, experts say.
The other side could be an increase in taxes to balance out the cost of these benefits.
“Poor fiscal management means the taxpayers are going to get slammed at some point,” said Samuel Fleet, president and chief executive officer of AmWINS Group Benefits of Warwick, R.I.
An extensive Freedom of Information Law request by the O-D revealed that few local layers of government even know how much they will owe in the future. Interviews also showed those who realize the magnitude of the problem are unprepared for it.
Of the 10 local governments queried by the O-D, only the town of New Hartford and Oneida and Herkimer counties had completed studies recommended by the state and federal governments that show the extent of the expense.
A recently released University at Buffalo study on the issue says the sooner local governments take action to deal with the problem, the better…
“The biggest problem for the state is the enormous, recurring structural budget gap starting next year and into the future,” said E.J. McMahon of the conservative-leaning Empire Center. “Cuomo clearly hopes that starting in 2021, (Democratic presidential candidate Joseph) Biden and a Democratic Congress will provide states and local government a couple of year’s worth of added stimulus. Read More
Ed McKinley
ALBANY — When the New York Constitution was reorganized nearly 100 years ago to give the governor more power over the budget process, noted there was a risk of making “the governor a czar."
M Read More
Michael Gormley
ALBANY — A new study by a conservative think tank says President Donald Trump’s 2017 tax law gave most New Yorkers a tax cut, even as Gov. Andrew M. Cuomo insists on repealing the measure because he says it will cost New Yo Read More
Johan Sheridan
ALBANY, N.Y. () — The Empire Center filed a against the state Department of Health on Friday.
“This case isn’t about assigning blame or embarrassing political leaders,” said Bill Hammond, the Empire Center’s Read More
The Empire Center first reported Tuesday that grants — 226 of them, totaling $46 million, to recipients selected by the governor and individual state lawmakers — seemed to still be going ahead. Read More
With lingering questions about how the novel coronavirus killed thousands of New Yorkers who lived in nursing homes, a group of state lawmakers is pushing to create an independent commission to get answers from the state Department of Health. Read More
“The importance of discussing this and getting the true facts out is to understand what did and didn’t happen so we can learn from it in case this happens again,” Hammond said. Read More
No doubt, the Health Department and the governor would like this report to be the final word on the subject.
But if it’s all the same with them, we’d still like a truly independent review. Read More