"Patrick rejects pension increase; Benefit could have cost state billions" by Matt Viser, Globe Staff | August 12, 2008
Governor Deval Patrick last week quietly vetoed a pension increase for retired teachers and state workers that would have boosted benefits by $120 per year, a major stand for a governor to take against unions that helped elect him.
Fiscal watchdogs had warned that the benefit could cost the state more than $3 billion over the next 20 years, but retirees argued that they desperately need a cost-of-living increase as costs for everything from groceries to gas are on the rise.
"I recognize that people across the Commonwealth, particularly retirees on a fixed income, are facing difficult economic times," Patrick wrote in his message informing the Legislature that he had vetoed the bill Friday. "However, I returned an earlier version of this legislation, expressing concern about adding significant costs to the Commonwealth's already large unfunded retirement liability."
The governor had been largely supportive of the pension boosts - and was expected to sign the legislation - but requested that the cost-of-living increases be restricted to workers with pensions less than $40,000. He argued that would make the plan more affordable for the state, while providing pension boosts for those who need it most.
I'm actually for him on this one, except he has no problem handing out money to rich Hollywood folk, Wall Street, corporate and lottery favorites, golf courses, overpriced contracts to favored clients, primo tickets to the games, or TAXPAYER BAILOUTS for BANKS!!!!
So what? The governor is eating just fine, thank you!
Also see: The Big Pit
"He was trying to strike a balance between helping the retirees on the truly fixed incomes while also helping the affordability of the Commonwealth," said Leslie Kirwan, secretary of administration and finance.
But supporters of the legislation, who had unanimous backing from the House and Senate, decided not to go along with the governor's plan and gambled that he would not use his veto.
"We rolled the dice and came up empty," said Ralph White, president of the Retired State, County and Municipal Employees Association of Massachusetts. "We were taking a certain amount of risk. Hindsight being 20-20, we underestimated the priority the governor placed on his amendment."
State pensions in Massachusetts are adjusted annually by the Legislature, which since 2000 has given a 3 percent increase on the first $12,000 of retirement pay, or $360 each year.
Under legislation approved by the House and the Senate, the base amount would be raised from $12,000 to $16,000, in effect raising the pension for every retiree by $120, a 33 percent increase.
The governor objected to that plan and sent an amendment back asking for the bump to apply only to the 87 percent of retirees with pensions under $40,000.
Lawmakers, in approving legislation in the final hours of their session, agreed to that approach, but only in the first year. The following year, the remaining retirees also would have received the $120 yearly bump.
The measure sailed through the House and Senate on voice votes July 31 and received final approval just hours before the end of formal sessions at 1:30 a.m.
There was no opposition until it reached the governor's desk.
The individual numbers are seemingly small, a boost of about $120 a year more for every retiree, which advocates say is well deserved. But multiplied by over 100,000 former teachers and state workers in the state's pension system, it would add up fast, critics say.
The cost could reach between $2.7 billion and $3.5 billion by 2026, according to the Massachusetts Taxpayers Foundation, a business-backed fiscal watchdog group.
"It was an act of political courage," Michael Widmer, president of the Massachusetts Taxpayers Foundation, said of the governor's veto. "The easy decision would have been to sign it and give an added benefit to 100,000 employees.
"But the state didn't have any money to pay for it," Widmer said. "This is clearly the responsible course."
The Globe must have this guy on retainer.
Type in his name to my blog search and see what comes up!
Representative Frank M. Hynes, a Marshfield Democrat and the chief sponsor of the legislation, is out of the country on vacation and could not be reached for comment. Senator Marian Walsh, a Boston Democrat who championed the issue in the Senate, did not return calls.
Sounds like a LOSER'S LOCKER ROOM!
A study commission has been established and is scheduled to hold a preliminary meeting before the end of the month. Advocates are hoping that changes can be made through the commission, which has until next year to complete its report.
"I truly believe the governor wants to do something," said White, who represents retirees. "He was not prepared to handle this legislation at this time, but I believe he wants to do something to improve the [cost of living adjustments] for retirees."
