So the Dispatch has a story about how Kasich’s “Jobs” budget is running into the Law of Unintended Consequences.  For example, Kasich’s budget calls for 2% of employer pension contributions to be shifted over to employees.  How does this create jobs?  Kasich doesn’t even offer an explanation. It just helps Kasich balance the budget by, again, simply mandating that someone else pick up the State’s spending.

Anyway, the pensions have a requirement that they can pay off their obligations within thirty years.  If not, they have to make adjustments to their contributions and/or benefits, which, after the battering the Lehman Brothers-inspired collapse on Wall Street has done, they all just did.

And now, Governor Kasich’s “Jobs” Budget shift of the pension contributions throws that out of whack.  Why is that? Well, the Dispatch reported on Friday that the Administration hadn’t considered at all whether the change would impact the solvency of the pension funds.  To them, they thought such a change would only impact how much the employee contributed to what the employer contributed.  But the Dispatch explains why that doesn’t work:

That’s because when employees leave the government payroll before they are vested, they are entitled to receive their share of the pension payments but not the government’s share. Since the employees’ share would now be higher, the share that they would be withdrawing also would be higher.

Kasich IdiotToday, the Dispatch reports that the PERS, STRS, and Ohio Police & Fire Pension funds all project that Kasich’s budget change would put the pensions out of compliance with Ohio’s statutory requirement that they be able to pay their obligations within thirty years.  Kasich’s budget change is particularly hard on police and firefighters because their contribution share will be the most affected by Kasich’s budget change as the budget change actually mandates that the employee share equals the employer share.  Police and fire have the largest employer shares because the years of service in that field before retirement is drastically below other fields for obvious reasons.

This is what led Kasich spokesman Rob Nichols to call the end of furloughs “a raise” on Friday.  Kasich’s solution isn’t to rethink the budget proposal.  According to Friday’s Dispatch, it just means a new round of lower benefits while employees pay more.  As far as the Kasich Administration is concerned, problem solved.

In other news, the Dispatch has this little buried nugget:

The PERS calculation includes one additional year because of an assumption that 5,000 state- and local-government workers would lose their jobs under Kasich’s budget.

Shouldn’t a fiscally conservative budget render pension funds more solvent, not less?

And shouldn’t a “Jobs” Budget be predicted to create jobs, not cost 5,000?

John Kasich’s “Jobs” Budget isn’t “getting the jobs done.

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  • Annekarima

    So – the man – tried to break another rule/requirement, only to find checks and balances in place? What a man.

  • Schmajo

    If Plunderbund has covered the impending layoffs and decrease of public service by the Department of Taxation, I missed it. Here is a link to one of the articles from last week.
    http://www.bizjournals.com/dayton/news/2011/03/17/taxation-department-closing-dayton.html

  • Anonymous
  • buckeyekelly

    My husband and I become OSUMC employees in 2001 and 2005 respectively. I became employed right after 9/11 (actually interviewed that morning) and reactively decided I needed to be in charge of my retirement future. Besides, I was on soft money. Hubby is in a guaranteed position in terms of longitivity (health care provider) and opted for PERS. I’m in APR. We didnt’ want our entire family’s nest egg in one basket. I’m really glad we did that especially with this new administration. However, when I enroll in a doctorate program in the fall and become a starving student again, this time with a mortgage, 2 kids under 4, and college debt, 2% shifted to my husband may not seem a lot on paper, but he really screwed our disposable income budget come fall.

    I’m sure it’s worth it in Kasich’s eyes. I can’t wait to move out of the state post-doc.

  • buckeyekelly

    My husband and I become OSUMC employees in 2001 and 2005 respectively. I became employed right after 9/11 (actually interviewed that morning) and reactively decided I needed to be in charge of my retirement future. Besides, I was on soft money. Hubby is in a guaranteed position in terms of longitivity (health care provider) and opted for PERS. I’m in APR. We didnt’ want our entire family’s nest egg in one basket. I’m really glad we did that especially with this new administration. However, when I enroll in a doctorate program in the fall and become a starving student again, this time with a mortgage, 2 kids under 4, and college debt, 2% shifted to my husband may not seem a lot on paper, but he really screwed our disposable income budget come fall.

    I’m sure it’s worth it in Kasich’s eyes. I can’t wait to move out of the state post-doc.

  • This makes me sad…

    It has always confounded me that certain members of the conservative party fail to see that cutting spending equals cutting jobs. When Kasich ran, he ran on 2 things: he was going to cut spending and increase jobs in Ohio (all while lowering taxes). That right there meant he was a liar from the start. You CANNOT do both. He used rhetoric and the sad truth the most voters do not care to actually inform themselves on policy and the history of their party’s candidate to win an election, and now he is giving us all the finger. We, the American people, need to get our heads out of our butts and become informed citizens. We need to vote for what is best for ourselves, not just because we were raised to be a certain party. We also need to educate ourselves on the actual consequences of policy decisions. Finally, we need to realize that we can’t get something for nothing. If we want safe cities, fire departments that actually have enough firefighters to safely put out fires, and a world class education system, we have to pay for it. Taxes are lower now than they’ve been since the 50’s (especially for the super rich) and we are wondering why we are having financial issues. We need to suck it up and pay taxes like the rest of the industrialized world. It’s not pretty, it’s not fun, but it is what it takes to run a society. The policies that Kasich is promoting will do nothing but run us further into the hole while helping the super rich get richer. While I truly believe that he is a greedy and amoral person, I also have to think we have ourselves to blame. We, as a people, need to remember how to think for ourselves and become informed members of the society we all live in.

  • Anonymous

    I have researched and read more about this man than I ever thought I would on a politician. We NEED TO BECOME MORE PROACTIVE. It is mandatory that we become more organized like Wisconsin. We need to educate those who think this is only about pensions and teachers and that it will not effect them. This man and what he is doing keeps me up at night. Some thing only my children could do before. I literally get sick to my stomach. He is one of those people who know to much but not enough, and now, he is in a position where he has become dangerous to the way of life that all Ohioans have been able to have. His attack on the schools is atrocious. It is not about balancing the budget at all. It’s not about creating more jobs. It is not about improving schools. Another program or charter or private school is not the answer to our education system. It is so sad that people are so out of touch that they do not know what their school system is actually doing and accomplishing. But I digress…. we really do need to become more cohesive in our fight against all that Kasich is trying to ram down our throats. I don’t know how to do this exactly except that personally I am boycotting many companies that has helped Kasich, I go to every rally I can get to. I copy out different information and place it in the mailboxes of all the employees at my school, I speak up and have my say but still there has to be more than that and writing on these boards. We have to get those who are not in the teaching-police-fire-and other public jobs involved because it will impact them more that they ever will think it will. Any suggestions

  • Fotogirlcb2002

    The problem is we dont math the Lehman Bros way —
    I have said in here before and I will say again
    these folks want us all to work for min wage with no benefits and work until we die !!!!!
    carrieee4 is correct — we need to be proactive
    I am almost 60 and my golden years tarnish a little everyday –in four years my golden years will be tin…………..

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