5/23/11

Awaiting Gina Raimondo's Pension Reform Recommendations

General Treasurer Gina Raimondo, who is one of the most important figures in the state right now, is about to unveil a list of recommendations to comprehensively reform our broken pension system, which is sucking the lifeblood out of public finances, both at the state and municipal levels. It will be interesting to see just how far she goes in her recommmendations. Of course, with those on the table at last, the real show begins, which will pit the politicians against the unions - a case of scorpions in the same bottle.

An ominous background to this drama is the news, as reported yesterday in the Providence Journal, that the state and most municipalities haven't put away a dime to cover the other side of the retirement coin - healthcare costs. This is a subject that has been an even more closely guarded secret than the true pension bill, although warnings have also been raised about this in years past.

Put the two obligations together and we're facing the perfect storm.