An editorial in the Washington Post describes the merits of Governor Hogan’s decision to withhold $68 million in education funding with a pledge to provide that funding to the State’s pension system instead. The piece defends the decision, stating that there are long-term negative budgetary consequences of altering the legislature’s pension funding plan.
The legislature may push back, but it will be on shaky policy grounds if it does. Just four years ago it agreed that the pension fund was a priority. Now, with a Republican governor, it has churlishly changed its mind, despite warnings from bond-rating firms in New York that the fund remains a weak point in state finances.
In picking a fight, the legislature would jeopardize the state’s long-term budgetary health.
For more information, read the whole editorial from the Post here.