Two weeks ago, I got an e-mail that gushingly proclaimed:
“The House Democrats’ years of effort to provide all Pennsylvania homeowners substantial and sustainable property tax relief will begin paying off this summer. Pennsylvania’s budget secretary this week certified that the state’s slot machine facilities have now produced enough revenue to begin reducing property taxes – more than $600 million for homeowners statewide .”
But, the House State Government Committee last Tuesday unanimously approved legislation that would hike pensions for more than 250,000 retired teachers and state retirees — including former state lawmakers. The bill, which would cost $10.4 billion over 20 years, could be approved by the Legislature because of election-year pressures and because retirees haven’t had a boost in six years, some lawmakers and political analysts say.
According to an article in the Pittsburgh Tribune “There’s been immense pressure from retiree associations, and retirees individually, contacting legislators and saying, ‘We’re way overdue for a (cost-of-living adjustment,)’ ” said Republican Rep. Matthew Baker, a key supporter from Tioga County. The bill by Rep. Steve Nickol has what Baker believes is an unprecedented 155 co-sponsors.
If passed, the raise would add about $520 million a year to the $1.1 billion taxpayers send to two pension funds — one for teachers, one for state employees — which are financed with tax dollars and employee payroll deductions. That $520 million a year, would start in the 2009-10 budget year, with roughly one-third of that, or $174 million, being paid by local school districts. (Higher property taxes)
We’re in a recession. People are losing jobs, and having a hard time filling the fuel tank, and the oil tank. Are you ready to pay higher state taxes for state workers and property taxes for teachers?
So where does all this leave the taxpayer? Start with a new $613 million revenue stream from slot machines, minus $520 million to buy the votes of retired state employees, and what was an average of $190. per household tax reduction is whittled down to $29. If you are a family of four, you might be able to super-size your dinner tonight.
Call your legislators and tell them to stop the pension grab.
