Friday, December 17, 2010

The Devil is in the details - more on the budget

We earlier told you that our comments on the Governor's amendments to the budget were based on comments made during briefings on Thursday. Again today we reported on the Governor's speech to the money committees. Nestled in that speech was the following sentence:

"Increase the state contribution paid on behalf of state employees and teachers for their defined benefit retirement programs by 2 percentage points effective July 1, 2011. We have put an additional $122 million in the budget for this purpose."

We have been advised that the import of this statement is that the employer rate for VRS will be increased by 2% and that the local school boards' share of the increase will amount to approximately $105 Million, which will have to be paid out of local funds!