NY TIMES – Editorial

Gov. Cuomo and Public Pensions Published: June 9, 2011

RESPONSE FROM ARTHUR CHELIOTES

The inconsistency between the editorial supporting the governor’s new pension proposal makes readers wonder if the editorial board has read The NY Times Business Section Investigative reporters who have done wonderful work exposing the massive fraud committed against pension funds including the state and city pension funds. If they had, they would know that the reason for the increase costs was due in large part to the 2008 crash. They would also know that the state and local budget crisis was due revenue reductions not increased expenses out of pace with inflation.

Yet there is no editorial support for proposed changes in the law known as the Martin Act that is being blocked by Wall Street interests at the state legislature that would allow billions of dollars in losses to state and city pension funds due to fraud to recover taxpayer and employee contributions. The state comptroller and attorney general support the change in the Martin Act but the governor’s silence is deafening. The city comptroller supports this fiscally sound change in the law. The mayor does not, he would rather city workers and taxpayers pay for the pension fund losses due to fraud not his Wall Street clients who defrauded the funds.

Of course abuses such as payroll padding and high-level politically connected individuals inflating their pensions must be stopped. As should cuts in taxes to the elite rich who gambled with our economy. We should remember public workers dutifully provide services to the public and are also burdened with the tax shift to the middle class and poor. Why must workers pay for a financial crisis they did not cause, is this government by and for the people.

A glaring injustice cannot be ignored. If you defraud billions from NY pension funds, crash the US economy you get too big to fail TARP bailouts but face no consequences for your transgressions. However, if you serve the public, provide for the common good and act responsibly as a contributing member of the community you suffer for your good deeds. Before we place a greater burden on working people, we should change the NYS Martin Act and recover taxpayer and employee contributions from the con artists who took it and are stealing our democracy.