Daily Journal (Cost Shift Edition)

The past week has been frantic. We are in the fight of our lives on this proposal to shift costs for teacher pensions from the state to the counties. Yesterday I was in Annapolis for a strategy meeting with stakeholders and I joined a press conference with County Executives from many of the biggest counties in the state. The press event kicks off our campaign to fight the cost shift and was well covered in the media, with stories in the Post, Examiner, Gazette, Patch, and some greatly TV news coverage including the following story from NBC:


Last night I attended a county-wide forum sponsored by the Montgomery County PTA’s about the education. The PTA has come out strongly against the cost shift, noting that it will greatly weaken our ability to fund MCPS. I made the point that the primary reasons the state pension plan faces such a large deficit is that the state adopted a very risky funding policy that resulted in chronic underfunding, then the state increased benefits retroactively, and then the markets tanked.

Now state officials are trying to say that we should “share some responsibility” for the cost of the pensions. But we don’t share any responsibility for the mistakes they made! We don’t control how much they contribute to the fund or how large the benefits are.

During the middle of the PTA forum, I noticed a tweet from Governor O’Malley about comments he made at a convention that evening. He talked about how even in tough times, the state had kept funding for education as a high priority. While it is true that the state increased spending today on education salaries, it is also true that the state knowingly underfunded its pension obligations for education employees.


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