teacher pension costs to taxpayers, via county governments.
Half of teacher pension costs would shift to counties under plan |
Hayley Peterson | News | Washing
washingtonexaminer.com
ANNAPOLIS -- Maryland counties would begin paying 50 percent of all
teacher pension costs -- now paid for entirely by the state -- to the
tune of $500 million in fiscal 2012 under a proposal the state's
pension commission is reviewing this week.
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Half of teacher pension costs would shift to counties under plan
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By: Hayley Peterson 12/13/10 8:05 PM
Examiner Staff Writer
A proposal to shift half the cost of teacher pensions from the state
to Maryland counties would require payments of$99 million from
Montgomery County and$71 million from Prince George's County.-Courtesy
montgomeryschoolsmd.org
ANNAPOLIS -- Maryland counties would begin paying 50 percent of all
teacher pension costs -- now paid for entirely by the state -- to the
tune of $500 million in fiscal 2012 under a proposal the state's
pension commission is reviewing this week.
The Washington suburbs, which house Maryland's largest school systems,
would pick up 35 percent of the tab, according to figures provided by
Maryland's Department of Legislative Services. Montgomery County would
owe $99 million and Prince George's county would owe $71 million.
Members of the state's pension commission -- a group charged with
recommending reforms to the retirement system by January -- plans to
vote on the proposal and other cost-saving measures Monday.
The rising cost of teacher pensions has been a scourge on the state's
ailing pension system for years. The cost of teacher pensions has
soared by 159 percent in the last eight years, while state revenues
have grown by 39 percent.
In Maryland, local boards of education have the power to promise more
expensive benefits, while the state is required to pick up the tab.
"Counties can decide to go for broke without taking any
responsibility," commission member Barbara Hoffman said Monday.
Only Maryland and two other states, Texas and Kansas, pay for 100
percent of teacher pension costs.
But shifting costs onto counties is highly contentious, with local
boards of education and teachers unions adamantly opposed to the idea.
Opponents say the state will be unable to attract and retain quality
teachers, should counties -- all facing huge deficits of their own --
be burdened with the added expense.
The commission is considering another plan that would shift 50 percent
of retirement costs except for health benefits onto counties. The plan
would cost counties half as much as the first proposal but save the
state roughly $247 million in fiscal 2012.
The state Senate passed a bill last year that would have phased in the
50-50 retirement split over five years. But the House of Delegates
stalled the measure, instead appointing the commission to study
alternatives. The phased-in plan is also included in the commission's
list of possible recommendations.
A fourth proposal would shift 40 percent of retirement costs onto
counties in the next fiscal year. Under this plan, the cost to
Montgomery would be $20.4 million and Prince George's would owe $14.7
million.
hpeterson@washingtonexaminer.com
Read more at the Washington Examiner:
http://washingtonexaminer.com/local/education/2010/12/half-teacher-pension-costs-would-shift-counties-under-plan#ixzz1FlKBMcd4
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