Fasano: Incomplete Bailout of Pension System is Not a Solution

Hartford – Senate Republican Leader Len Fasano (R-North Haven) released the following statement regarding the pension financing proposal released by Governor Dannel P. Malloy today.

“This is an incomplete bailout of a pension system that’s completely out of control. Simply refinancing our debt is not the structural change we need to change the direction of our state. This package will add billions of dollars in new costs onto taxpayers beyond what is reflected in the governor’s summary. It’s not a solution and taxpayers deserve better.

“We are in this mess because over the last six years Democrats who had complete control of our state didn’t want to address this issue. Lawmakers need to get serious about looking at the whole picture. We need a two pronged approach that not only looks at how to pay for past debts, but that makes structural changes to state benefits to get future spending under control. You can’t call refinancing a solution. You can’t add extra costs onto taxpayers that they will have to bear forever without also offering changes to provide future relief and reduce expenses.

“Standard & Poor’s has already raised concerns about proposals to increase and extend unfunded liabilities. If this credit rating agency didn’t like this idea the first time they heard it, what makes anyone think they will view it differently now? This could prompt further downgrades, which could put all our state’s borrowing at risk. We have to be aware of these risks and we need actuarial analyses on the impact of this proposal over time. This plan absolutely must come before the legislature for a vote.”