Submitted by George N. Spitz, Dec 27, 2006 06:26

New Yorkers are paying an expensive price for Alan Hevesi's mismanagement, aptly described by Herb London, of the New York State and Local Government Pension Fund. According to page 123 of New York State's 2006 Comprehensive Annual Financial Report, State and Local Government forced contributions to the pension fund increased more than tenfold from 2002 ($263.8 million) to in 2006 ($2.78 billion). The consequences for many local governments throughout the state are higher real estate taxes and reductions in essential services.

An honest well motivated Comptroller could turn this around benefiting both the state and local governments. Retiree's pensions now amount to $6.1 billion. The $142.6 billion invested in government securities bearing interest rates of around 4.2%, should suffice to pay the pensions without any further contribution from the state and local governments and the employees.

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