Report: Pension system to continue dominating state spending
Laurence Msall is with the Civic Federation, a budget watchdog group. He says the state used to spend about 7 percent of its budget on retirement benefits. Now it’s closer to 25 percent.
“It effectively means that all new revenue, in order to keep up with that growth, has to go into the pension system.”
Msall says the state’s financial outlook is so bad, it also owes nearly 7 billion dollars in a backlog of bills to its vendors including social service agencies.