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Administration June 16, 2010
DiNapoli Pension Borrowing Opposition a Changed Policy?
June 16, 2010 (PLANSPONSOR.com) – New York state Comptroller Thomas P. DiNapoli is now opposing a tentative budget deal calling for the cash-strapped state to borrow billions of dollars from the state pension fund.
Reported by Fred Schneyer
A DiNapoli statement released Monday blasted the notion of pension borrowing, something the New York Times said represents an about-face for DiNapoli, who has been pushing the idea since last year.
“There have been a number of outrageous and unfounded rumors and erroneous press reports that I will allow a raid of the pension fund to balance the state budget,” DiNapoli said in the latest statement. “Let me be very clear: The pension fund will not be used to balance the budget.”
DiNapoli spokesman, Dennis Tompkins told the Times that the DiNapoli proposal was different from the one agreed upon by state leaders because it would also force state and local governments to set aside funds during prosperous times in reserve accounts that could be tapped during bear markets.
Tompkins called the borrowing aspect of DiNapoli proposal a “side piece.”
A DiNapoli news release about his 2009 proposal suggesting pension borrowing is here.