NY Teachers Union Sees The Bernanke/Obama Fiscal Cliff Ahead Resulting From Low Treasury Rates

Thank a teacher, Helicopter Ben

The NY Teachers Union sees the real fiscal cliff ahead in their pension plans as reported here.  A bulletin from the New York State Teachers Retirement System suggests that taxpayers and students are in for a nasty one-two punch.  Schools, the retirement system recently announced, will have to fork over as much as 16.5 percent of their payrolls next year — a whopping 40 percent jump — tokeep the pension fund sound. Of course, this is only a small step to 54.2% of payroll required as reported earlier, but they can’t totally shock the NY taxpayers.

The Mighty Cuomo’s 2% tax cap on local and school taxes was just a delusion for the gullible in NY, as the clever Cuomo had exempted from the 2% cap, tax increases due to pension contribution increases. This year, for example, Gov. Cuomo signed a wholly inadequate pension reform that won’t provide meaningful relief for years. So far, only the NY Teachers Union sees the cliff ahead. Wait till all the other NY Government Unions see the cliffs and need their fixes too.

Will Helicopter Ben, aka the Pay Master for Barack’s bank cronies, be dropping money into the teachers pensions and then the other NY government employees pensions? The Teachers Union, this time, only demands 16% of payroll, or a 40% increase in pension contributions, but really 54.2% of payroll is required, instead of the present 11% of payroll or a 393% increase.

Clever Christie outwits Cuomo

Helicopter Ben, Helicopter Ben, Helicopter Ben, the desperate but beloved NY teachers are crying out. But, wait NY teachers, Cuomo had passed up a Obama/Hurricane Sandy photo-op, while the craven Christie took his place for the photo-op   Christie knew when to kow-tow, grovel and kiss-up, because his pension cash needs are even worse than Cuomo’s. Must the Mighty Cuomo borrow the money, which could never be paid back. Are there enough suckers left to buy Cuomo’s bonds without a significant increase in interest rates? Did Fat Christie triumph over Prince Charming? Will Obama dispatch Helicopter Ben for NY and NJ equally?

This was just the NY Teacher Unions waking up, but similar State and local pension disasters are festering all over the country.

Illinois    Kentucky  New Jersey    The Pew Reports on all States

For your enjoyment: the NEA’s own pension plans 

Earlier post in regard pension cliffs

5 Responses

  1. n.n

    There is a theme here. It starts in retirement and progresses evermore backward. Perhaps people did not understand that progressivism was reactive, not principled.

    While the cause and effect of the crisis in the financial sector is difficult to discern because of government intervention, manipulation, and obfuscation, the original stakeholders benefiting from financial distortions are easier to identify. What does a politician have to do to get elected and remain in office?

    The unions, especially public, are culpable. As are their members who were corrupted by greed while working and retired.

    It’s not a coincidence that a progressive investment in education has engendered progressive corruption and a regressive outcome for students. There is no evidence that material compensation can purchase integrity. It also does not help that treating symptoms is profitable in perpetuity.

    That said, this is plainly not applicable to all teachers; but, it certainly captures those individuals who actively campaigned to demand compensation for the distorting policies they supported.

    Think of the children, indeed.

    • Igor

      Give me a call when they actually DO think of the children, would you please?  I won’t hold my breath, however…

      • n.n

        There are the exceptions or, perhaps, the rule.  I enjoyed a favorable and even mutually rewarding relationship with many, if not most of my teachers.  I will suggest that proximity (e.g. physical, cultural, philosophical) is likely to engender a positive relationship and accountability.

        As I have said repeatedly, the issue is progressive corruption.  It is not just an extremely accurate pun, but a self-fulfilling prophesy which feeds on itself.

      • Igor

        I too have had excellent teachers, ones who cared about their craft – passing on knowledge.  I have NO idea what their opinions or personal proclivities were, they were TEACHERS when they were on the job.  And a fine job they did!

        The Unions are truly the problem.

      • n.n

        It was easy to identify the good teachers, because they responded to enthusiasm with enthusiasm.  For them, teaching was a vocation.  They enjoyed a reciprocal relationship with whom they were sharing knowledge and skills.

Leave a Reply

Your email address will not be published.