Schenectady pension bill $400K over budget Tuesday, October 7, 2014 By Kathleen Moore (Contact) Gazette Reporter
SCHENECTADY — The city might not have enough money to pay its entire state retirement bill for police and firefighters this year, Finance Commissioner Deborah DeGenova said.
She told the Schenectady City Council at its Tuesday budget session that the city may have to accept a payment plan from the state.
The bill, which the city received in August, was $400,000 more than the original state projections, she said. Unless there’s a large surplus in the 2014 budget, the city won’t have the funds to pay the whole bill, DeGenova said.
The proposed 2015 budget assumes the city will have to also take a payment plan next year, she said.
The city had budgeted to spend $5.2 million this year. For next year, the budget calls for paying $6 million, while also amortizing about $820,000 more.
The city will pay its entire retirement bill for all other employees, which is about $2 million next year, DeGenova said.
The city pays the state every year. The money goes into the pension fund, where funds are dispersed after employees retire.
The city is also setting aside $70,000 for outside counsel to negotiate the next police and fire labor contracts.
Councilman John Mootooveren objected to the expense, suggesting the city hire a full-time attorney who could negotiate contracts.
“I think we have a vacancy to fill, and I think we should fill it with someone with labor-law expertise,” he said.
But Corporation Counsel Carl Falotico said the city’s $50,000 to $60,000 salary for an assistant corporation counsel wouldn’t be enough for a labor attorney.
It’s enough to attract attorneys “a little out of law school,” he said, adding that he hopes to hire someone with several years’ experience in civil suits.
“We get a substantial amount of that,” he said, adding that he wants to do more of that sort of litigation in-house.
Mootooveren said the city should use part of the $70,000 outside-counsel cost, as well as the budgeted salary, to get a labor attorney.
“Then you see a savings,” he said.
Falotico argued against that, saying it would be cheaper to hire an excellent labor attorney for a short time. He noted the attorney would negotiate the contentious and expensive police and fire contracts.
“That’s like the major leagues,” he said. “You want the best representing you. The decisions that get made are final and can have a lasting impact.”
Other council members supported Falotico, and Mootooveren dropped his complaint.
"I saw the best minds of my generation destroyed by madness, starving hysterical naked, dragging themselves through the negro streets at dawn looking for an angry fix,"
Thanks to the mayor last year and his stupid financial people. Incompetence at it's best
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Thanks to the mayor last year and his stupid financial people. Incompetence at it's best
Funds and projected estimates are controlled by the State, not the Mayor...they are state pensions not city, so State tells city how much they owe, city budgets accordingly. State submits higher that projected, so how is that any City politician's fault?
JUST BECAUSE SISSY SAYS SO DOESN'T MAKE IT SO...BUT HE THINKS IT DOES!!!!! JUST BECAUSE MC1 SAYS SO DOESN'T MAKE IT SO!!!!!
Funds and projected estimates are controlled by the State, not the Mayor...they are state pensions not city, so State tells city how much they owe, city budgets accordingly. State submits higher that projected, so how is that any City politician's fault?
The city received the bill in August 2014.
What was the mayor and his finance people doing in September of 2013 when they were doing the budget.
Does OSC give municipalities projections in August 2013 for the August 2014 bill?
The city is currently working on it's 2015 budget. What has the state told the city NOW for the city's bill will be due in August 2015?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
What was the mayor and his finance people doing in September of 2013 when they were doing the budget.
Does OSC give municipalities projections in August 2013 for the August 2014 bill?
The city is currently working on it's 2015 budget. What has the state told the city NOW that their bill will be in August 2015?
Thought you wouldn't own your mistake, and sure enough you don't. You claim to know so much, then why are you asking? You should know the answers before you make accusations. HINT: YOU'RE WRONG!!! (Unless you can prove my statement is wrong.)
JUST BECAUSE SISSY SAYS SO DOESN'T MAKE IT SO...BUT HE THINKS IT DOES!!!!! JUST BECAUSE MC1 SAYS SO DOESN'T MAKE IT SO!!!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Thought you wouldn't own your mistake, and sure enough you don't. You claim to know so much, then why are you asking? You should know the answers before you make accusations. HINT: YOU'RE WRONG!!! (Unless you can prove my statement is wrong.)
I have the brains to know that the state bills the city. DUH
When did OSC give it's projections to the city on what the August 2014 bill would be? Prior to Oct 1, 2013 when the mayor proposed his 2014 budget?
The article says:
For next year, the budget calls for paying $6 million, while also amortizing about $820,000 more.
How is the city arriving at that number for next year? Has the state given it's projections to the city for the August 2015 bill already? Is it the $6 million decided by the city's so called financial experts?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
I have the brains to know that the state bills the city. DUH Obviously not because you blame the City admin! DUH! When did OSC give it's projections to the city on what the August 2014 bill would be? Prior to Oct 1, 2013 when the mayor proposed his 2014 budget?
The article says:
For next year, the budget calls for paying $6 million, while also amortizing about $820,000 more.
How is the city arriving at that number for next year? Has the state given it's projections to the city for the August 2015 bill already? Is it the $6 million decided by the city's so called financial experts?
Read the article again, brainiac...State gave City projected pension expense in 2013..... August 2014, State gave actual bill which exceeded what the State had projected....DUH!!!!! So why is this City admin fault???? Explain that MC1, how about it? Can you show facts that it's the City's fault and not the state? How about it MC1....how about facts instead of your biased false comments...answer it with facts. Own it. Who's wrong here MC1. How about answering that???
JUST BECAUSE SISSY SAYS SO DOESN'T MAKE IT SO...BUT HE THINKS IT DOES!!!!! JUST BECAUSE MC1 SAYS SO DOESN'T MAKE IT SO!!!!!
The city might not have enough money to pay its entire state retirement bill for police and firefighters this year, Finance Commissioner Deborah DeGenova said. She told the Schenectady City Council at its Tuesday budget session that the city may have to accept a payment plan from the state. The bill, which the city received in August, was $400,000 more than the original state projections, ...
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
And this is when the stock market is going up. When the market cools off which it definitely will the bill will be much much higher than it is now. $6,000,000 out of $30,000,000 in taxes just for pensions!! 20% of our taxes go to pensions. Amazing. We are in big trouble.
Life is tough, but it's tougher when you're stupid - John Wayne
TIP TO NEW VISITORS TO THIS FORUM - To improve your blogging pleasure it is recommended to ignore (Through editing your prefere) the posts of the following bloggers - DemocraticVoiceofReason, Scotsgod08 and Smoking Bananas. They continually go off topic, do not provide facts and make irrational remarks. If you do not believe me, this can be proven by their reputation scores or by a sampling of their posts.
Read the article again, brainiac...State gave City projected pension expense in 2013.....
Where is the sentence, in that article, that states that?
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
Try to keep up...BT's question was already answered...
Does it really matter? The fact is that it is over $6,000,000. It is a black hole in the budget that is here to stay for a long time.
Life is tough, but it's tougher when you're stupid - John Wayne
TIP TO NEW VISITORS TO THIS FORUM - To improve your blogging pleasure it is recommended to ignore (Through editing your prefere) the posts of the following bloggers - DemocraticVoiceofReason, Scotsgod08 and Smoking Bananas. They continually go off topic, do not provide facts and make irrational remarks. If you do not believe me, this can be proven by their reputation scores or by a sampling of their posts.
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