2012-01-27 / Letters

The Benefits Moonshot

To the Editor:

I’m sure many of our fellow villagers saw the weekend Newsday article on the public worker benefits outlook for Garden City. It indicated that the increase in taxpayer liability for pensions alone, over the period from 2010 to 2013 would be about 250%, or more than 80% per year. Yikes!, I thought.

A few months ago, our Mayor, sort of offhandedly, announced that this year’s benefit increase would be 18%. Only a couple of years ago, it was 12%. I guess this news raises the ante a bit, and, perhaps, the need for our putative representatives to show some interest. Before dealing with this latest nuclear bomb, let’s take a look at what a mere 18% increase means.

Our total yearly benefits cost for the Village is now around 50 million dollars. One year’s increase at 18% is 9 million dollars; the second year adds about 11 million;

The third year, another 13; and then almost 15. After 4 years, the yearly amount has doubled, to about 100 million dollars, and at an 18% rate of increase, it will double again every 4 years. Depending on how these new data affect the picture, it could be much worse.

It has been estimated that 20%, or more, of our houses are occupied by seniors. The future growth of their Social Security benefits, and their investment income, are very unlikely to keep within shouting distance of the inevitable Tax increases. Family income will never rise fast enough to cover the increases in Village taxes. It must also be said that most of our younger families are trying to prepare for the huge college expenses for their children. Good luck to them.

This unhappy juncture has not been unanticipated. Many of our finest citizens have given warnings, and made intelligent suggestions, usually without acceptance. Some have run for office with platforms involving active management, including our Trustee emeritus and compensation expert, Thomas Lamberti. If there truly is such a crisis in the offing, maybe we should listen to them.

In the last couple of weeks, it was reported that Great Neck has negotiated a second belt tightening with their teachers union. There are twenty other districts that have made such contract accommodations. It wouldn’t hurt to discuss their experience and get their advice.

(Full disclosure, the writer is a senior.).

Frank Kiernan

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