Don't forget the state's other soaring health bill
Rising Medicaid costs related to federal health-care reform aren't the only medical expenses Maryland taxpayers have to worry about. Maryland provides state retirees with health insurance, and according to new accounting rules it must start funding that liability. The unfunded cost is $14.5 billion, according to the Pew Charitable Trust.
That will require an additional annual appropriation of $600 million -- more than twice what the state is already paying for employee retiree health care, according to Cecilia Januszkiewicz, who was Maryland Secretary of Budget and Management under Gov. Bob Ehrlich. She wrote a piece for the Free State Foundation on the problem and pointed out that the extra money needed for retiree health care just about vacuums up all the money that slot machines will provide. She also notes that the current administration is not talking about this extra headache, which, if accounted for, would make projected budget-gaps even worse than they already seem:
Given the magnitude of the problem, state officials should be educating the public about this significant potential liability. Yet, finding anything regarding the work of either of the commissions on state Web sites is like looking for the keys to Fort Knox.
Comments
The gambling industry-funded campaign effort to decriminalize slot machines swore to us (over and over) that $600 million was "guaranteed" to go to schools. What they refused to acknowledge was that there was nothing to prevent that same amount from being looted from current school spending for other priorities. Voters thought they were choosing $600 million in NEW money for schools. What they actually approved was $600 million for Annapolis to use to cover its mistakes in other areas. Does anyone really think that the schools are going to see any of that $600 million on a net basis?
What we are seeing is yet another way to spend that slots money. How many times over have we spent that money now?
Morally Bankrupt, indeed.
Posted by: Aaron Meisner | October 9, 2009 9:34 AM
For more on this topic, please read the following report by Maryland Public Policy Institute senior fellow Gabriel J. Michael. "Passing the Buck: Maryland's Unfunded Liabilities for State and Local Retirees"
http://www.mdpolicy.org/research/detail/passing-the-buck
Posted by: Christopher B. Summers | October 9, 2009 11:27 AM
Don't expect Gov. Ehrlich's former budget secretary to shine the light on Maryland Republicans' irresponsibility on this very issue.
Last year, the House Republicans proposed slashing the OPEB set-aside by $38 million and then $132 million only weeks after their leader, Del. Anthony O'Donnell, criticized Democrats for not setting aside enough funds for OPEB.
Democrats can do better on this issue, but they've shown much more responsibility than Republicans.
- Steve Lebowitz
Posted by: justdafacts | October 9, 2009 11:50 AM
Don't expect Gov. Ehrlich's former budget secretary to shine the light on Maryland Republicans' irresponsibility on this very issue.
Last year, the House Republicans proposed slashing the OPEB set-aside by $38 million and then $132 million only weeks after their leader, Del. Anthony O'Donnell, criticized Democrats for not setting aside enough funds for OPEB.
Democrats can do better on this issue, but they've shown much more maturity than Republicans.
- Steve Lebowitz
Posted by: justdafacts | October 9, 2009 11:54 AM
Quoting ..."Given the magnitude of the problem, state officials should be educating the public about this significant potential liability. "
NO ! ... Given this liability ... coupled with the fact that TAXPAYERS are being asked to pay for something they DO NOT GET ... at all, ... state official should be trying to find a way to make those RECEIVING these benefits to pay for AT LEAST 50% of the cost !
Posted by: Tough Love | October 9, 2009 3:55 PM
The FY 2007 Maryland State budget submitted by Governor Ehrlich and approved by the General Assembly in April 2006 included a $100 million appropriation to begin to address the OPEB liabilities. As of June 30, 2008, according to the State’s Official Statement for bonds issued in August 2009, the assets available to offset the State’s $14.8 billion liability were valued at $118 million. Since Governor O’Malley was elected, there has been virtually no progress in addressing the funding for this liability. And there has been even less public discussion of this issue.
This is just one more example of making promises with no concern about how to pay for them.
Posted by: Cecilia Januszkiewicz | October 9, 2009 3:58 PM