Pension Shifts = “Great Pain” for Maryland Counties

“The O’Malley Administration has understated the impact the pension shift will have on local governments”,  according to Prince George’s County Deputy Administrator for Budget, Finance, and Administration Tom Himler. A recent Washington Post article reported:

Now, Tom Himler, Baker’s deputy administrator for budget, finance and administration, has come up with an estimate of what it would cost the cash-strapped county to take on the pensions in the 50-50 split that O’Malley has proposed.

It’s not a pretty picture.

Himler, who was responding to a request from state legislators from the county who want to help the Baker administration fight the shift, estimates that it will cost the county $34 million in fiscal year 2013, which begins July 1. By fiscal year 2022, Himler estimates, it will cost the county as much as $98 million annually.

Given the importance of the issue, and the many confusing elements of the plan and its reporting, MACo hopes to clarify the proposal on the table and its effects on county governments.

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