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Comptroller Criticizes Cuomo’s Plan to Cut Pension Costs
ALBANY — Gov. Andrew M. Cuomo’s plan to allow municipalities to defer more of their pension costs came under fire Monday from the state comptroller, Thomas P. DiNapoli, making him the second prominent Democrat to take aim at the plan. Mr. DiNapoli’s office said in a statement that it had “serious concerns” about the plan, in part because of its potential impact on the funding level of the state pension system and the balance sheets of local governments.
The comptroller’s statement came as Mayor Stephanie Miner of Syracuse, the co-chairwoman of the state Democratic Party, continued to criticize the plan. On Monday, she did so at a legislative hearing here.
“How do we know this plan is viable 25 years down the line?” Ms. Miner said, adding, “We might simply be financing another liability that we will not be able to pay.”
Government pension costs have soared in recent years, putting enormous pressure on municipalities across the country. Mr. Cuomo has proposed allowing municipal governments to defer a portion of their pension costs by choosing a fixed contribution rate below the current one. The plan comes on top of another pension-deferment plan approved in 2010 — and backed by Mr. DiNapoli — that allows municipalities to borrow from the pension fund to pay their pension costs.
Mr. DiNapoli’s criticism, however, could doom the plan, announced a week ago. The state comptroller is the sole trustee of the state’s $150 billion pension fund, and his support is needed for the plan to proceed.
While New York’s pension system is generally viewed as one of the better-financed ones in the nation, the comptroller’s office is concerned that the new plan may pose a risk to that standing, said Jennifer Freeman, a spokeswoman for Mr. DiNapoli.
The office is also concerned about a risk to the credit ratings of municipalities if they carry the additional liability of deferred pension obligations on their books. Allison Gollust, a spokeswoman for the governor, said, “We look forward to continuing to work on this with the comptroller to deal with his spiraling pension costs, and if he has any suggestions on how to deal with them, he should let us know.”
New York City has its own pension system that would not be affected by the governor’s plan, but Mayor Michael R. Bloomberg was asked about it nonetheless.
“As a general policy,” he said, “postponing, down the road, expenses that you are going to have every year is not a good policy.”
A number of local leaders support the plan. At the hearing, Rochester’s mayor, Thomas S. Richards, praised the proposal. “It’s going to help dramatically,” he said.
Politics in the New York Region
Targeting Trans Athletes: A proposed ban on transgender women playing on women’s sports teams has turned a Long Island county into the latest battleground for conservatives who have put cultural issues at the center of a nationwide political strategy.
Illegal Donations: A Chinese business titan pleaded guilty to federal charges that he made more than $10,000 in straw donor contributions to political candidates — including, a person familiar with the case said, to a New York congressman and Mayor Eric Adams.
A Cannabis Mess: Gov. Kathy Hochul has ordered officials to come up with a fix for the way New York licenses cannabis businesses amid widespread frustration over the plodding pace of the state’s legal cannabis rollout.
N.Y. Budget: Both of New York’s legislative chambers have announced their budget proposals. They have until April 1 to hash out a spending plan with Gov. Kathy Hochul, who unveiled her proposal in January.
Covid Deaths: Former Gov. Andrew Cuomo was subpoenaed to appear before a House subcommittee to answer for his administration’s handling of nursing homes during the pandemic, a development that could further damage his chances at a political comeback.
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