Wednesday, 17 March 2010 08:37
Homes appraised at $109,000 to see $500 increase
How would you like to wake up one morning and see that in the headlines? We wouldn’t like it either – but the tax time bomb continues to tick towards 2012.
The Upper Perkiomen School Board, as well as many other school boards, is working hard to inform the public of the tremendous financial crisis that is looming for the state pension system.
It started in 2001 when the Pennsylvania Legislature agreed to increase teachers’ pension benefits by 25 percent as part of a political deal that also saw their own pension benefits increase. To make that action politically acceptable, legislators delayed increasing taxpayer contributions until 2012. The state legislature was hoping for a rebound in investment performance, among other things, that might ease the blow to the taxpayers. That hasn’t happened and the clock is ticking.
The state employees’ and educators’ pension plans have a “defined-benefit” which means that beneficiaries receive a predetermined amount regardless of the pension investment plans’ performance. As we wrote three weeks ago, the difference between the pension’s value and what is guaranteed needs to be paid by someone (read taxpayer). Don’t let anyone fool you – the figures don’t come close to balancing.
The Upper Perkiomen School Board will be hosting a panel discussion on Thursday, March 25 at 7 p.m. in the Multi-Purpose room of the Education Center. The center is located at 2229 East Buck Road in Upper Hanover Township.
The panel will include Jeffrey Clay, Executive Director of the Pa. State Employee Retirement System, Senator Bob Mensch, (24th District), Beth Winters from the Pa. School Boards Association and Steve Nickol from the Pa. State Education Association.
The format will include introductory comments, followed by questions from the school board and the public – that’s you!
The issue was previously scheduled to be addressed at the regular meeting of the Upper Perkiomen School Board on February 11, but one of our brutal February snowstorms caused that meeting to be rescheduled.
We encourage the members of the panel to be responsive to the concerns of the citizens and not use this forum as an opportunity to tell everybody how well their areas of concern are doing or to take shots at each other. There is a problem and people want to know what they are doing to address it.
The Upper Perkiomen School Board is to be commended for putting this public forum together. After all, the school boards did not bring on the problem; it was inherited from state legislators. The public would be wise to prepare for the meeting and attend it. If the Commonwealth doesn’t help solve the problem, school boards will have no choice but to drop an astronomical increase on the taxpayers. The public has to wonder - how will that affect funds available for the education of the children?
As we wrote before, the continuing practice of state legislators failing to plan for the impending 2012 debacle is getting worse. There is an election coming up in November. It would be wise for all voters to find out where your candidate stands on this issue before casting your ballot.
Without action by the state legislators, the headline at the top of this editorial could well become reality in less than three years.
