Tag: pensions

This week on “The Learning Curve,” co-hosts Gerard Robinson and Cara Candal talk with Mike Goldstein, founder of the Match Charter School and Match Teacher Residency in Boston. He shares why he became involved in K-12 education and founded Match Charter, and some of the innovations the school has implemented, such as high-caliber teacher preparation and use of Ivy League-educated teachers to drive successful student achievement. They discuss Match’s high-dosage tutoring program, and Mike shares the results of an experiment begun six years ago to replicate it in school districts. Mike also sheds light on charter graduates’ economic mobility, including job prospects and earning gains after college. Lastly, they delve into how charter supporters and leaders in Massachusetts and other blue states should proceed now that opposition is on the rise in states with some of the highest-performing charters, and what must be done to bridge the growing political divisions within K-12 education reform.

Stories of the Week: In New Mexico this year, the state is experiencing a 40 percent spike in the retirement of education employees. In Illinois, nearly 40 cents of every education dollar is spent on pensions.

Hubwonk host Joe Selvaggi talks with Pioneer Institute’s Director of Research and former Massachusetts Inspector General and State Representative Greg Sullivan about HB 2808, COVID-19 Essential Employee Retirement Credit Bonus, discussing the merits of the recently proposed joint bill, its cost, and our current public debt burden in the Commonwealth.

Guest

Congress Can’t Afford to Bail Out High-Spending States

 

Gov. Andrew Cuomo (NY-D) speaks to union group. (Lev Radin / Shutterstock.com)

Congressional Democrats are doubling down on their demand that, in response to the coronavirus pandemic, the federal government must bail out free-spending states. There are several terrible ideas out there just now (destroying minority-owned businesses in the service of racial equality comes to mind), but this is one of the worst.

The crisis in problem states is fueled mainly by unfunded pension liabilities. Public employee unions and the politicians they elect have for decades promised lavish pensions to union members, far exceeding those paid to wealth-creating private-sector employees. But adequate funding was never provided and the over-optimistic financial market returns didn’t materialize. The result is a growing total of $4.9 trillion in contractually enforceable liabilities to state retirees. There is no way the states can make these payments.

Aaron Renn and Rafael Mangual join City Journal editor Brian Anderson to discuss Chicago Mayor Rahm Emanuel’s legacy, the Windy City’s ongoing homicide epidemic, and its severely underfunded public pensions.

Chicago’s energetic leader shocked the political world this week when he announced that he would not seek a third term as mayor. Emanuel leaves behind a mixed record: he enjoyed some successes, but he largely failed to grapple with the city’s two biggest problems: finances and violent crime.

California, the land of anti-Trump “resistance”, has its own problems both irresistible and intractable – mounting public pension debt, underfunded schools, and a revenue stream too dependent upon capital gains. David Crane, a Stanford lecturer, past economic aide to Governor Arnold Schwarzenegger and co-founder of Govern for California, weighs the health of the state so bitterly opposed to Trump.

Don’t Be a Nudge

 

Minnesota’s state executive and legislative branches are currently under Democratic (or as we say up here, DFL — Democratic, Farmer and Labor) Party control. They recently passed a Women’s Economic Security Act here, a passel of 1970s-era measures on comparable worth, more generous parental leave, a better place to pump breast milk for your child at work, etc. The cost to the state is a few million dollars; the costs to businesses will be substantial. We could go on about those, but the Freedom Foundation of Minnesota has found a little nugget in the middle of this bit of warmed-up Carterism.

The bill states: “the commissioner of management and budget must report to the legislature…on the potential for a state-administered retirement savings plan”, by January 2015. The legislation includes $400,000 to study the issue. While a legislative report may seem innocuous (albeit expensive), it is anything but. This is the proverbial camel’s nose under the tent.