WIUM Local
(2011-07-14)
Listen Now:
null
Dan Rutherford
Rutherford said the debt has dropped the state's bond rating to one of the worst in the nation. He said only California has a worse bond rating among states.
He said the state has to pay more for the money it borrows but local governments can also be forced to pay more for bonds.
Rutherford said the state must reduce the unfunded liability from its pension system. The pension liability is $140 billion. "It's going to have to change to a choice where it will be a defined benefit as it is for a participant today. They choose that. It's going to have to be a higher premium."
Rutherford said changing the state pension system will be painful and will cost employees more.
While he gave the legislature high marks for restraining spending in its recent budget, he said overall state spending increased 6.6%. He said the state has a four-year window to solve its budget crisis while increased income tax rates are in effect.
Rutherford was in Macomb to promote the "Cash Dash" database. It shows residents if the state holds unclaimed property in their names.
© Copyright 2012, wium
