Politics on the Hudson

Republican comptroller candidate Harry Wilson took aim today at Comptroller Thomas DiNapoli’s proposal to essentially borrow off the pension fund to lower pension payments for state and local governments.

DiNapoli’s office continues to insist that the proposal would not borrow from the pension fund, and instead amortize the costs for local governments over a period of time. And DiNapoli’s plan would create a reserve account in good times to help offset future spikes in pension costs, his spokesman Dennis Tompkins said.

In fact, Tompkins went so far as to say that the comptroller didn’t support a Senate bill last year that failed in the chamber, even though his office put out a statement at the time saying, “He was disappointed the Senate did not pass the bill” and DiNapoli himself submitted a legislation last year that was similar to the Senate bill. Tompkins said the press release should have said that DiNapoli was disappointed the Senate didn’t pass his bill, which had the reserve account piece and some other components.

E.J McMahon, executive director of the Empire Center for New York State Policy, told Gannett that DiNapoli can call it anything he wants, but his plan is a form of borrowing.

Wilson, at a news conference at the Capitol, said DiNapoli wants to borrow from the pension fund and questioned the proposal, a version of which is being considered by Gov. David Paterson and legislative leader.

Wilson said the proposal under consideration would lead to $11 billion in new borrowing by the state and based a rate of return in the fund of 8 percent, which he claimed is too aggressive for these uncertain economic times.

“I think it’s critical that the people of the state have the ability to evaluate this plan for what is it, a plan to borrow from the pension fund,” Wilson said.

Here’s Wilson talking some more about the proposal.

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