It appears that Texas politicians would rather stick their collective heads in the sand rather than acknowledge that yes, Houston, we have a problem.
Texas owes state workers $50 billion in future retirement benefits and refuses to acknowledge the obligation.
That’s a lede sure to catch anyones attention. A new accounting rule by the GASB took effect in December requiring state and city governments to account for their retiree benefits. But newly the newly elected Republican state controller says:
Texas Comptroller Susan Combs says she won’t follow a new national accounting standard that requires states and cities to disclose the estimated costs of benefits promised to retired workers, such as health care and life insurance. The government would need to set aside $4 billion a year over the next decade to keep from falling short on what it owes, according to a report by the state’s Legislative Budget Board.
That’s right, she says no, not going to account for those benefits. Why, you ask?
Combs, a Republican who took office in January, said the new standard shouldn’t apply to Texas. The benefits don’t count as long-term obligations in the same way as pension costs because they aren’t guaranteed under labor contracts or defined benefit plans that require a state contribution, she said.
“The state has no legal obligation to provide such benefits,” Combs, 62, said in an e-mailed statement.
That’s right, all you hard working state government employees, you aren’t guaranteed anything. And in fact, you aren’t.
While the state can cut promised benefits anytime, “we don’t expect them to ever do it,” said William M. Pina, 58, president of Texas’s Retired State Employees Association. The state has 67,000 retired employees, Pina said.
That’s a lot of trust there, Mr. Pina, considering that they’ve been cut before.
Texas has cut retiree benefits once in 25 years, said Mary Jane Wardlow, who oversees benefits for the Employees Retirement System.
Leave it to a Houston Democrat to get it right.
Houston Controller Anise Parker opposes the Texas legislation that would allow local governments to avoid the new disclosure rule, calling it “bad public policy.” Houston’s long-term liability for retiree medical coverage is estimated at $3.2 billion, according to city projections.
It is, indeed, very bad public policy. No politician in the state capital truly thinks that Texans aren’t obligated to pay the benefits that have been promised. It’s just another example of short-sighted fiscal policy that our legislators, Repubs and Dems alike, are heaping upon the taxpayers of Texas.
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8 Responses to “Texas Just Says No to Full Disclosure”Search
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Its bad policy to lie to our city and state workers and promise benefits that will not materialize due to fiscal irresponsability.
I can not believe this woman is one of ours. OOH yes I can, just another of the many rinos we have elected because they lied well and hid who they really were.
Very likely these folks got their training from running the Social Security system.
Actually, Texas has cut retirement benefits several times
first their was a huge reduction
Then Cola formula was changed so much that many teachers are opting out of the program and going for the Social Security Program
There is much to be done, peronally I think all retirements outside of Law Enforcement and the Military are illegal, savings should never be taxed and retirement is the sole responsibility of the individual, not everyone else.
Re: #3. Judging by his(her) last paragraph, someone has obviously stolen EPJ’s identity and is posting counterfeit commentary. I hope he bought some of that theft identity insurance from Zander Insurance that Dave Ramsey hawks every day over on 950.
City/State/County pensions are as big of a scam as Social Security. Those who work now are paying for those who retire. As people retire, more people will need to be hired to pay for the retiree’s pensions. Thus adding to the need to grow govt. Unlike GM these guys can just raise taxes and say it is for the children!
There ought to be a way to opt-out of pensions, and invest in 401Ks or some other interest bearing accounts so there might actually be money ready for those who decide they can retire. Of course El Presedente tried to to that with up to 4% (FOUR F-ING PERCENT!!!!) of people’s total social security confiscation and the libs freaked out. Because think of the children.
Government won’t take care of you. It’s been proven in Virginia, it’s been proven on the border, it’s been proven in finances. Why do people keep thinking elite politicians will fix ANYTHING.
/rant
Its a ponzy scheme. it takes false bravado to say ” no, I won’t let you know the facts”. Unbelievable……..We need a good cleaning in Texas government.
The Republican party had better stop worrying about me not giving them money and be more concerned with me voting Democrat. The Democrats policies may be slightly worse, but I’m not questioning their intelligence the way I’m questioning that of the Republicans. I’m getting to the point where I have to actually question their intelligence.
Are Ted Poe and Dan Patrick the only elected conservatives in Texas? Are they the only ones with any sense at all?
7 Peter
Yes. and Yes.
And I’m not too sure about them, either.