I can't find anyone who disagrees with Gov. Tom Corbett's assessment of the state's unfunded pension liability as the No. 1 issue in the state.
Last night I had two of the most powerful men in Harrisburg - both from Delco - and both of them quickly concurred.
Sen. Dominic Pileggi, R-9, of Chester, the Senate majority leader, and Rep. Bill Adolph, $-165, of Springfield, majority chairman of the House Appropriations Committee, joined me for our live-stream Internet show,'Live From the Newsroom,' to talk about the pension crisis and budget issues.
If you missed the show you can catch the replay here.
The good news? Everybody seems focused on a resolution, likely starting with moving future workers into a plan that looks a lot more like the private sector 401K plans most workers deal with today. That's the end result of an amendment to a bill being offered by Rep. Mike Tobash, R-Schuylkill, which would create a threshold of $50,000 for workers to remain in the defined benefit plan. After that they would be moved into the defined contribution plan.
Actually, Sen. Pileggi has championed an even bolder move, simply making all new employees after a set date take part in the defined contribution plans.
The bad news? None of this does a thing to shrink the $50 billion - and growing - unfunded liability.
Larry Feinberg, a longtime member of the Haverford School Board and founder and co-chairman of the Keystone State Education Coalition, talked about the real problems this is creating at the local level, agreeing that the bottom line, as Corbett has been alluding to in visits across the state the past two weeks, is increases in property taxes.
The problem is revenue. The bottom line is that there is not a lot of wiggle room in the series of austere, no-tax-hike budgets Corbett and the Legislature have put in place.
All agree that it is essential for the state to pay its bills. It owes the money. Mistake were made in the past, and the state got walloped when the market tanked back in 2008, and now the bill is due. It's a big, fat $50 billion fiscal train wreck, one that is nearly doubling every year.
Consider the fact that the budget the Legislature passed just before the July 1 deadline totalled $29 billion.
The state did not get into this predicament overnight, and the solution will not be a quick one either.
Adolph belives an extraction tax on Marcellus Shale drilling is likely, but even that won't eradicate the shortfall. Pileggi is less enthused about the extraction tax, noting the governor's staunch opposition, which shows no sign of easing.
Feinberg offered one complete new source of revenue - a potential tax on financial transactions.
I asked all three if they believe this "crisis" is resonating with the public. It's easy for your eyes to glaze over when you start talking about multipliers and other financial wizardry.
Clearly, Corbett thinks it has.
He's drawn a line in the sand and is likely betting his governorship in pushing a direct link between the ballooning pension bill and increasing local property taxes.
In other words, something every citizen can understand - their wallet.
Stay tune.
We're going to be hearing a lot more about the pension crisis between now and November.
Comments