Sunday, February 6, 2011

Maryland goes after teachers' pensions

Lest you think that this issue over Maryland teacher pensions doesn't concern the general public, or that teachers are just stirring up dust for no cause, I ask you to reconsider that position.
 
Your ability to advocate, with your voice, your letters, or your vote, depends on your being well informed. If teachers go down, students go down, and we all go down. And I don't know how much lower we can go. Do you? Where will this all end?
 
Please read this article that was published in the newsletter of the Prince George's County Educators Association. Get an angle and perspective on this issue that commercial media might not provide.
 
STATE PENSION COMMISSION ISSUES RECOMMENDATIONS
On December 21, the Public Employees’ and Retirees’ Benefit Sustainability Commission delivered its recommendations for stabilizing the costs and funding of pensions and retiree health care costs. The group made several severe recommendations that would negatively impact teacher pensions and have a crippling effect on school systems across the state. Many of the recommendations require further study, like increasing the years of service to become vested, increasing employee contributions or reducing cost of living adjustments (COLAs) for future retirees.
 
The most immediate plan the group is recommending to the Governor and General Assembly is that over the next three years, 50% of the cost of pension funding be shifted to local school boards. As school boards cannot raise revenue, they would have to rely on county governments for additional funding. With some counties already seeking to reduce funding for schools, this would force school boards to divert already scarce funds to pay for retiree costs and would likely lead to increasing class sizes, cutting programs and laying off teachers and other employees.
 
The Commission has stated that it would like to have until October 2011 to continue studying the various plans before issuing a final report, but they will provide an “interim report” to the Governor and General Assembly in January. According to The Washington Post, the Governor is working on two proposals of his own for shifting the pension costs to county governments during this legislative session. Under these proposals, the estimated cost to Prince George’s County would be between $39 and $50 million annually of added expense to a budget that is already in red.
 
PGCEA along with MSEA and other labor organizations in Maryland maintain that cost shifting and benefit reductions are not the answers. A plan for long term and appropriate levels of funding from the state are needed to keep the pension fund healthy. Below is a joint statement released on December 20 by labor groups from around the state:
 
Today’s Recommendations of the Public Employees’ and Retirees’ Benefit Sustainability Commission: Joint Statement by Maryland Labor Organizations
AFSCME Maryland, AFSCME 67, AFT Maryland, the Maryland State Education Association, and SEIU Maryland are deeply disappointed in today’s recommendations by the Public Employees’ and Retirees’ Benefit Sustainability Commission, which would saddle hundreds of thousands of Maryland’s working families with the responsibility for covering up the shortcomings of Wall Street and the State’s broken funding promises. The Commission’s recommendations are frighteningly short-sighted and would be detrimental to the stability and quality of Maryland’s public schools and public services.
The Commission’s recommendation to shift the cost of teacher pensions to local school systems in particular would have a devastating impact on local funding, resulting in layoffs, additional cuts in local services, critical dollars out of the classroom, and seriously jeopardizing our children's education and future.
 
State workers keep us safe, maintain our roads, and provide quality services for children and families.
 
Despite under-staffing, pay cuts, and furloughs, these dedicated employees work hard every day to provide the vital services that keep moving Maryland forward. Haphazardly slashing our already modest benefits will burden the State with massive recruitment and retention issues, as well as dooming many retirees to a future with insufficient retirement funds and health care coverage, creating additional long-term problems for state and local governments. Despite the challenging fiscal climate, there are viable solutions worth investigating together that have not been adequately addressed by the Commission. We urge the General Assembly and the Governor not to make the same mistakes when they take up this issue in January.
 
Maryland’s public employees have kept their promise by increasing their contributions to the system and by providing outstanding public schools and services. We will work with the General Assembly and the Governor to ensure that elected officials keep their promise of a secure retirement for employees, exceptional public services for our citizens, and world-class public schools for our children.