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Opposed to STF and Approved ERI
6/8/2010
- Cheryl A. Felice, President
Honorable William J. Lindsay, Presiding Officer
Suffolk County Legislature
PO Box 6100
Hauppauge, NY 11788
Dear Presiding Officer Lindsay and the Members of the SC Legislature:
The Suffolk County Association of Municipal Employees is opposed to IR 1582-2010, or any proposal that is designed to take $30 million off the budgetary table for 2011 budget to meet pension obligations.
AME is concerned that Mr. Levy has called for the suspension of PAY-AS-YOU-GO funding for 8 consecutive years totaling $128 million to $160 million of principal costs, before tacking on interest charges; and while calling for using the Tax Stabilization (otherwise known as the Rainy Day Fund) for $27.1 million of additional pension costs, that could otherwise be bonded and saving that money for the 2011 Budget.
Former state comptrollers and state legislators have suggested bonding for local pension costs because those charges are imposed on localities by the state comptroller based on the performance of the investment portfolio. The State Comptrollers’ rationale, and basis for this type of borrowing in unusual times, is that investment performance is outside the control of local government.
In the imperfect financial world we currently live in, it would make more sense to bond the $27.1 million of pension costs in accordance with state guidelines and hang on to the Rainy Day Fund for more immediate needs. If IR 1582-2010 passes, the $30 million is lost forever - and the legislature cannot recapture it.
Further, AME encourages the Suffolk County Executive and Legislature to consider and approve the Early Retirement Incentive packages proposed by New York State.
Sincerely,
Cheryl A. Felice
President