12-11-2010, 10:53 PM
The following came from the FHP forum. It was printed in the Herald Tribune.
They had talked about 6%. Now it is just shy of 10%. For all you Troopers that voted for this candidate, Thanks for the backup
Gov.-elect Scott eyes cuts to employee pensions
CUTS? He wants to trim taxpayer contributions to system for public workers
By GARY FINEOUT
H-T Capital Bureau
Published: Friday, December 10, 2010 at 1:00 a.m.
One of the big questions surrounding Gov.-elect Rick Scott's plan to cut billions of dollars in taxes is this: Where would he make up the difference?
Florida's nearly 700,000 public employees could be about to find out.
Scott wants to cut $1.4 billion next year from taxpayer contributions to the public employee pension program, and this week many legislators signaled their support for the notion.
Such a move would, for the first time since 1975, force teachers, firefighters, sheriff's deputies and other government employees to make significant contributions out of their own salaries. Florida is one of only a handful of states in the nation that don't require employees to pay for their pensions.
"Our state employees have the best deal in the country," said Sen. Jeremy Ring, D-Margate and chairman of the Senate panel that is considering the changes. "They don't contribute and that's wrong."
In addition to Scott's plan, several other proposals have surfaced. All call for making public workers pay for at least part of their pensions.
"I think the time has come to make those fundamental changes," said new Senate President Mike Haridopolos, R-Merritt Island.
Last year alone, the state, as well as cities, counties and school districts, contributed nearly $3.4 billion to the retirement fund.
Sharply cutting those contributions and forcing government employees to make up the difference isn't likely to occur without a fight. State workers have long argued that the pension is one of the perks that helps make up for lower salaries they receive working for the government. The pension contributions paid annually by taxpayers typically amount to 9.6 percent of an employee's salary.
"If you are going to hit everybody in the Florida Retirement System, that's hundreds of thousands of people," said Doug Martin of the American Federation of State, County and Municipal Employees. "You are going to be cutting pay for state workers, teachers, police officers and firefighters. That's a pretty good way to make folks unhappy."
But that argument may have lost some of its resonance with the 1 million Floridians without work; millions of others seeing their pay and benefits cut; and the state itself, which is facing a $3.5 billion budget shortfall next year.
Scott is not expected to offer a specific plan for changing the state pension program until early 2011. But it is clear that he sees the retirement fund as one way to cut spending and help make up for the $1.4 billion cut he wants to make in state property taxes for schools and $700 million more in the corporate income tax.
If Scott can reduce pension contributions by $1.4 billion next year, he theoretically could transfer the savings to schools to make up for the property tax cut.
Repeated attempts to interview Scott or his aides about cutting government pension contributions were unsuccessful. Scott has previously called the pension fund "a ticking fiscal time bomb."
Historically, politicians have been reluctant to touch that bomb for fear it will blow up in their faces, and the current situation seems particularly tense. State employees are already on edge because they have not received a raise since 2006.
Sen. J.D. Alexander, R-Lake Wales, the Senate budget chairman, said he would prefer to make cuts elsewhere in the state budget before forcing workers to pay for their pensions.
"We have a lot of good people who work for the state of Florida," Alexander said. "I may have to go there, but I'm trying to do it by controlling costs in other programs."
Florida is home to one of the largest pension plans in the nation -- assets are worth roughly $122 billion. The fund has only enough funding to cover 87.9 percent of its overall obligations to current and future retirees.
It is unclear how Scott would make $1.4 billion in cuts to the pension contribution. The state paid nearly $678.7 million in 2009 to cover its employees. By contrast, counties, cities and school districts paid $2.55 billion to cover their employee contribution costs. So presumably, Scott and the Legislature must convince local governments and schools to go along with the cuts -- perhaps in exchange for a promise that these would replace what they might lose from Scott's property tax reduction.
Lt. Gov.-elect Jennifer Carroll on Wednesday refused to answer how Scott plans to make his plan work, saying it would be made clear when Scott unveils his first proposed budget in early February.
"We're formulating the exact rollout so I can't go into the specifics at this time," Carroll said. "Just stay tuned."
They had talked about 6%. Now it is just shy of 10%. For all you Troopers that voted for this candidate, Thanks for the backup
Gov.-elect Scott eyes cuts to employee pensions
CUTS? He wants to trim taxpayer contributions to system for public workers
By GARY FINEOUT
H-T Capital Bureau
Published: Friday, December 10, 2010 at 1:00 a.m.
One of the big questions surrounding Gov.-elect Rick Scott's plan to cut billions of dollars in taxes is this: Where would he make up the difference?
Florida's nearly 700,000 public employees could be about to find out.
Scott wants to cut $1.4 billion next year from taxpayer contributions to the public employee pension program, and this week many legislators signaled their support for the notion.
Such a move would, for the first time since 1975, force teachers, firefighters, sheriff's deputies and other government employees to make significant contributions out of their own salaries. Florida is one of only a handful of states in the nation that don't require employees to pay for their pensions.
"Our state employees have the best deal in the country," said Sen. Jeremy Ring, D-Margate and chairman of the Senate panel that is considering the changes. "They don't contribute and that's wrong."
In addition to Scott's plan, several other proposals have surfaced. All call for making public workers pay for at least part of their pensions.
"I think the time has come to make those fundamental changes," said new Senate President Mike Haridopolos, R-Merritt Island.
Last year alone, the state, as well as cities, counties and school districts, contributed nearly $3.4 billion to the retirement fund.
Sharply cutting those contributions and forcing government employees to make up the difference isn't likely to occur without a fight. State workers have long argued that the pension is one of the perks that helps make up for lower salaries they receive working for the government. The pension contributions paid annually by taxpayers typically amount to 9.6 percent of an employee's salary.
"If you are going to hit everybody in the Florida Retirement System, that's hundreds of thousands of people," said Doug Martin of the American Federation of State, County and Municipal Employees. "You are going to be cutting pay for state workers, teachers, police officers and firefighters. That's a pretty good way to make folks unhappy."
But that argument may have lost some of its resonance with the 1 million Floridians without work; millions of others seeing their pay and benefits cut; and the state itself, which is facing a $3.5 billion budget shortfall next year.
Scott is not expected to offer a specific plan for changing the state pension program until early 2011. But it is clear that he sees the retirement fund as one way to cut spending and help make up for the $1.4 billion cut he wants to make in state property taxes for schools and $700 million more in the corporate income tax.
If Scott can reduce pension contributions by $1.4 billion next year, he theoretically could transfer the savings to schools to make up for the property tax cut.
Repeated attempts to interview Scott or his aides about cutting government pension contributions were unsuccessful. Scott has previously called the pension fund "a ticking fiscal time bomb."
Historically, politicians have been reluctant to touch that bomb for fear it will blow up in their faces, and the current situation seems particularly tense. State employees are already on edge because they have not received a raise since 2006.
Sen. J.D. Alexander, R-Lake Wales, the Senate budget chairman, said he would prefer to make cuts elsewhere in the state budget before forcing workers to pay for their pensions.
"We have a lot of good people who work for the state of Florida," Alexander said. "I may have to go there, but I'm trying to do it by controlling costs in other programs."
Florida is home to one of the largest pension plans in the nation -- assets are worth roughly $122 billion. The fund has only enough funding to cover 87.9 percent of its overall obligations to current and future retirees.
It is unclear how Scott would make $1.4 billion in cuts to the pension contribution. The state paid nearly $678.7 million in 2009 to cover its employees. By contrast, counties, cities and school districts paid $2.55 billion to cover their employee contribution costs. So presumably, Scott and the Legislature must convince local governments and schools to go along with the cuts -- perhaps in exchange for a promise that these would replace what they might lose from Scott's property tax reduction.
Lt. Gov.-elect Jennifer Carroll on Wednesday refused to answer how Scott plans to make his plan work, saying it would be made clear when Scott unveils his first proposed budget in early February.
"We're formulating the exact rollout so I can't go into the specifics at this time," Carroll said. "Just stay tuned."