Rising Pension Costs Forcing Local Governments to Make Cuts

The vast majority of New York State’s local governments are having to raise property taxes, cut jobs, slash services and are running out of rainy day reserves thanks to out-of-control pension costs.

Local governments and school districts are mandated to pay about $387 million more in pension costs than they did last year.

According to New York Conference of Mayors’ executive director Peter Barnes, at a time when municipal budgets are blood-red from reduced state aid, eroded property tax bases, and smothering state mandates, these pension costs are a dagger to the fiscal hearts of local governments.

NYCOM had supported the tier VI pension reforms enacted last year by the legislature, but the vast majority of savings from that plan will not benefit taxpayers for at least 20 years.