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The Malloy Truth Gap


The Malloy-teacher gap just got wider. According to a “factcheck” story in CTMirror , claims made by Governor Dannel Malloy concerning his role in protecting teachers’ pensions are a bit of a stretch.

The leadership of the Connecticut Education Association (CEA), one of Jonathan Pelto’s targets before the penniless Mr. Pelto withdrew from the gubernatorial race, has been touting Mr. Malloy as the “first governor in Connecticut’s history to annually fully fund teacher pensions during his first term in office and guarantee full funding in the future.” Other governors certainly have short-sheeted the teachers’ pension fund. However, CTMirror notes, the leadership “doesn’t mention that Malloy had little choice but to do so. His hands effectively were tied by legal guarantees put in place by Gov. M. Jodi Rell and the 2007 legislature.”


On his path to re-election, Mr. Malloy has steadily been shedding teachers. Glastonbury teacher Martin Walsh, now challenging CEA President Sheila Cohen, offered a demurral: “This is the way they intend to turn out votes for Malloy, and it is unethical. They never told us he (Malloy) didn’t have a choice.”

Here was an occasion when Mr. Malloy truthfully might have said that former Governor Jodi “Rell made me do it.” Mr. Malloy has frequently on the campaign trail loaded his problems on the backs of his predecessors, two Republican governors and Lowell Weicker, who is sui generis, in a class of his own, neither Republican nor Democrat.

So then, it was not Mr. Malloy but the much abused Mrs. Rell and the 2007 General Assembly that “guarantee full funding [of the often neglected pension fund] in the future.” Mr. Malloy had no choice but to fully fund the teachers’ pension fund. Having accepted a proposal offered by State Treasurer Denise L. Nappier in 2007 “to borrow roughly $2 billion and deposit it into the cash-starved pension fund,” CTMirror notes, “Connecticut promised in the bond covenant – its contract with investors who bought those bonds – to budget the full pension contribution required by analysts for the entire 25-year life of the bonds.”

There was an escape clause in the covenant: The fund’s fiscal health permitting, officials might reduce contributions if the fund’s solvency “exceeded certain benchmarks – a condition never met since the bonds were issued.” The reader will note the polite demurral. In fact, pension funds in Connecticut are all bleeding at the ears.

A biennial actuarial evaluation in 2012 showed that Connecticut held $9.7 billion in assets and $23 billion in liabilities in its State Employees' Retirement System (SERS); 42.3 percent of its obligations were funded, and $13.3 billion, or about 58 percent, were unfunded. The Connecticut Post reported at the time that “Connecticut is one of nine states, according to CNBC, that have a ratio of less than 60 percent, and among those nine, it is second from the bottom of the list, just behind Illinois.” An 80 percent funded, 20 percent unfunded ratio is considered healthy.

In 2007, the possibility of becoming governor was but a glint in the ambitious eye of Mr. Malloy, who was then Mayor of Stamford. When the Rell legislation was passed, Mr. Malloy had a year earlier lost his bid for governor in a Democratic primary to then New Haven Mayor John DeStefano. In 2010, three years after the ink had dried on the bond covenant signed by Mrs. Rell, Mr. Malloy won the gubernatorial nod in a primary with Ned Lamont.

Very expensive political consultants will tell incumbent chief executives to take credit for the good done by their predecessors in the opposing camp, while pressing on their brows those thorny problems the chief executives are themselves reluctant to own. Harry Truman’s buck need not always stop at the desk of a chief executive. Sometimes, through clever language manipulation, an ambitious, vote hungry governor may press upon his own brow laurels deservedly given to his predecessor in an opposing party.  The feat can only be engineered during those times, frequent in Connecticut, when the media’s attention is distracted by some shiny bauble dangled before its nose by a seasoned incumbent.


Connecticut’s pension problem is a leprous sore that can most successfully be addressed by increasing the retirement age for state workers while reducing Cadillac benefits. That is the only solution to pension creep. The unwillingness on the part of Connecticut governors and legislators to attack expenses are the shovels used to dig the state’s grave. It is cowardice and an irrational fear of unions that has prevented governors and legislators from successfully addressing the problem of unaffordable state pensions. Every time a Republican anywhere in the nation has suggested rolling back pension costs or reverting to a different method of financing pensions, he or she has been roughly, unjustly and successfully assaulted by precisely those interests that, in Connecticut, favor maintaining the unsustainable pension status quo.

Comments

peter brush said…
Connecticut’s pension problem is a leprous sore that can most successfully be addressed by increasing the retirement age for state workers while reducing Cadillac benefits.
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And, yet, I don't hear Foley talking about it. At his website we learn he wants to stop pension "fraud and abuse," but no expression of doubt that the current benefits package provided to State workers has to change, as, for example, we understand they have been changed in places like Wisconsin and Indiana, and perhaps are not in so great a need of change in those sensible states that don't allow public sector unions. The New Haven Register, for some reason more concerned about Malloy's dishonesty before he became Governor than it is about his demonstration of deceit while being Governor, has switched its endorsement from Foley to Malloy. In part, the switch is based in the Register's perception that the unions can get along with Malloy, and therefor he may be in a better position to beg them for mercy. There's no question that they have a right to exist and that the citizenry has to get along as best it can with this gross built-in conflict of interest in their corporate affairs.
As for honesty, the progressive, democratic socialist, liberal, good-government guys require it of Republicans, but not so much of Dems; ever more incoherent and bizarre social/economic engineering must be performed, ends almost justify means, eggs must be gently broken... Although, Dem Party machinations have become so stinky that Colin McEnroe says he might not vote for Dems(next time).
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"Finally, we have found Foley to be the more forthright of the two candidates.
http://www.nhregister.com/general-news/20101010/editorial-tom-foley-for-governor
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Foley’s unwillingness to share exactly how he will fill gaps in the budget and his questionable past with unions makes him too unpredictable for the labor leaders to trust. And what we need is someone who can move those union leaders toward new contracts that will help dig the state out of its financial hole, not bury us deeper. We think Malloy has shown his ability to do just that.
http://www.nhregister.com/opinion/20141025/editorial-endorsement-dan-malloy-is-best-choice-for-connecticut-governor
mccommas said…
Mr. Foley is being vague about how he is going to achieve things because he has to be. He does not evidently make promises he isn't sure he can keep. John Rowland said he would repeal the income tax if elected. Remember that? It is only after he was elected that he qualified that promise on a Republican legislature being elected with him.

Mr. Foley knows he has to deal with a Democrat legislature and so he needs wiggle room for deals. Perfectly understandable in my opinion. He will broker the best deal he can with the Communists uh, I mean Democrat Party.
mccommas said…
Ah-ha! Now we know the rest of the story....
peter brush said…
being vague about how he is going to achieve things because he has to be
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I think at this point the Republican Party underestimates how appreciative a majority of the electorate might be of some forthright talk about our fiscal problem, not to say disaster. I understand that the Nutmeg State is what is now referred to as "deep blue," which is to say dominated by the left. And, in any case, the Dem legislature will make sensible policy very difficult. But, both as a matter of crass politics and as a way to set the table for legislation, it would be good if the Republicans were able to muster rhetoric in the direction of saving the State. Put otherwise, proclaiming the truth, in moderation of course, is like Quaker Oats, both good and good for the Republican pols. Foley's vagueness didn't win last time, and this time it didn't even get him the support of the "New Haven Register."
peter brush said…
Connecticut’s pension problem is a leprous sore that can most successfully be addressed by increasing the retirement age for state workers while reducing Cadillac benefits.
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The public sector unions are granted authority by the State to hold up municipalities as well. I wouldn't expect Foley to come out with the full truth that those unions should be abolished (or at least have the objects of their collective bargaining restricted), but the deals the unions have are unsustainable.
A discussion on a local Hartford blog demonstrates how public sector unions corrupt the polity and distort representative government.
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Anonymous said...
All of you Connecticut liberal brain dead union members should wise up and realize your democratic slave masters like money as much as Foley. Especially the money they suck from your paycheck.

October 24, 2014 at 4:34 PM
Anonymous said...
Hey Anonymous on October 24 at 4:34,, After my Union Slavemasters take "their cut off my hide" ,,,here's what i'm left with..... A BIG FAT PAYCHECK,,,UNBELIEVABLE BENEFITS AND AN AWESOME PENSION FOR THE REST OF MY LIFE.. I BET YOU WISH YOU WERE AS "BRAIN DEAD" AS ME !!!!!

October 29, 2014 at 10:57 AM Anonymous said...
I have the same kinds of benefits and pension, you and the other brainwashed fools continue to vote for your socialist master. How big is your check really, do you have low standards? You are brain dead...you should see what really successful people have. Union stooge...keep believing the lies.

October 30, 2014 at 8:53 AM
Anonymous said...
Anonymous, or should i refer to you as "JEALOUS" ?, on Oct 30 at 8:53,,, YOU HAVE THE "SAME" BENEFITS AND PENSION I HAVE????? Can you retire at age 50 with 85 percent of your salary and full medical benefits for you and your spouse???? YOUR EITHER A BIG FAT LIAR OR YOUR WORKING WITH ME AND SHOULD COUNT YOUR BLESSINGS "AND" KEEP YOUR UNGRATEFUL MOUTH SHUT!!!I HAVE A FEELING YOUR A BIG FAT LIAR WITH A "CRAPPY" OCCUPATION!!

November 2, 2014 at 9:17 AM

https://www.blogger.com/comment.g?blogID=982633190780306493&postID=7822601152767506256

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