State treasurer warns of pension debt
Maine's new treasurer warned yesterday that the state's $4.3 billion unfunded pension liability could force the state to divert funding from other programs.
At a press conference, Bruce Poliquin said paying off the debt in the retirement system for teachers and state workers will cost taxpayers $450 million in the next fiscal year, with that payment growing to $653 million by 2015, according to MaineToday Media. Lawmakers have been grappling with how to handle the expected additional $287 million needed this year to keep the pension plan in the black. The Maine Public Employees Retirement System covers more than 71,000 teachers and state employees, including 23,000 retired employees. Poliquin expressed concern that a requirement to pay off that debt by 2028 would affect funding for education. Currently, the state allocates $260 million for the university and community college systems.
House Democratic leader Emily Cain told the Maine Public Broadcasting Network that the Legislature's appropriations committee has been addressing the problem for the past four years, and said Maine has been a model for other states in tackling pension debt. "The reality is, a lot of people have been doing this work already and it's great to have [Poliquin] working with us too," she told the network. The Maine Center for Economic Policy urged the state to take a "reasonable, balanced approach" in meeting its fiscal obligations, saying Maine is "well-positioned to maintain investments in its people and infrastructure."
Mainebiz web partners
Most Recent
Most Recent
Comments