House GOP on Verge of Surrendering to Teachers' Union

Thanks to House Republicans, a major school pension reform passed by the state Senate last week could be undone. As reported by CapCon, Senators defied government employee unions by voting to close the chronically underfunded “defined benefit” school pension system to new employees, starting in 2013.

If the House follows through, this would be arguably the most transformational state budget reform since Gov. John Engler signed a similar measure for state workers back in 1996. That measure has helped taxpayers avoid some $4.3 billion in unfunded liability since then.

If the House fails, every new school employee hired going forward represents a new taxpayer liability that won’t be extinguished during the lifetime of most who read this. The history of this and and other government pension systems suggests that much of this liability won’t be properly pre-funded, with the cost falling on our children and grandchildren.

And yet House Republicans led by Appropriations Committee Chairman Chuck Moss (R-Birmingham) appear willing to give………

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via House GOP on Verge of Surrendering to Teachers’ Union.

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