Watchdog group slams Cuomo's pension plan

ALBANY -- The independent Citizens Budget Commission yesterday warned that Gov. Andrew M. Cuomo's pension proposal designed to help struggling local governments will instead endanger communities and cost their taxpayers more.

The nonpartisan budget watchdog joined a growing group of critics of one of the few proposals offered by Cuomo to help hundreds of cities, towns, counties and school districts facing fiscal crisis. The plan would allow local governments to choose to use a fixed, lower rate for current skyrocketing pension costs by assuming projected savings over 25 years through a new pension system.

"We believe this proposal would endanger the future financial viability of the pension plans and recommend you reject it," commission president Carol Kellermann said. The message was directed to state Comptroller Thomas DiNapoli, the sole trustee of the massive state pension system, who is reviewing Cuomo's option, included in his 2013-14 budget proposal.

Syracuse Mayor Stephanie Miner has raised concerns since January about Cuomo's proposal as risky and ineffective for hundreds of local governments facing fiscal crises statewide. Miner says other options are needed to help communities avoid insolvency despite years of layoffs and cutbacks. "This alone is not a long-term, sustainable solution," she said yesterday.

Miner, a Democrat, said mayors are faced with rising pension and labor costs while populations and tax bases shrink. That forces cuts in police, fire and other personnel and facilities.

Cuomo's office has countered such criticisms. Budget spokesman Morris Peters said they're based on "faulty assumptions and a misunderstanding of the proposal." The plan counts on lower costs years from now and is designed to avoid any spikes, he said.

"The proposal was carefully designed to be fiscally neutral to the funds, and we included multiple protections to guarantee that it is," Peters said.