Losquadro: State Pension Fund Borrowing a 'Debt Bomb,' Calls on State Officials to Enact Real Reform.

Calling the New York State Pension system broken and in immediate need of reform and repair, New York State First Assembly District candidate Daniel P. Losquadro (R,C – Shoreham) joined New York State Comptroller candidate Harry Wilson at a news conference today to denounce the just adopted plan to borrow from the state pension fund to make constitutionally required payments to the same fund — with interest.

Standing in front of the New York State Office Building in Hauppauge, Losquadro – who is the Suffolk County Legislature’s Minority Leader– explained that pension costs for the state and municipalities are soaring as a result of enhanced retirement benefits for public employees and the decline in the stock market over the past two years. 

The pair said that New York State homeowners living outside of New York City can expect their property taxes to rise an extra $1,300 on average over the next six years because of the pension borrowing scheme enacted Tuesday night with the passage of the state budget.

Losquadro said an even larger problem lurks in the future.

“Pension costs are soaring,” Losquadro said, “and by 2015 local governments could be doling out a cost that is equal to 30 percent of their public payrolls for the pensions of their retirees and to keep the fund whole. And these are not my numbers,” he said, “these are projections by the Comptroller’s Office and Gov. David Paterson’s budget office.”

“Unchecked,” Losquadro continued, “growing pension costs are a debt bomb that will threaten the economic vitality of municipalities and local governments for generations to come and burden a future generation of already overburdened tax payers.”

Losquadro explained that he has discussed reforms with state leaders and supports changes to the New York State Employees Pension System, including shifting to a 401(k) type plan.

Also at the press conference were State Senator John Flanagan, Assemblymen Phil Boyle, Jim Conte, Mike Fitzpatrick and Dean Murray and Suffolk County Legislator Tom Cilmi.