Pension System

West Virginia's voters on Saturday rejected Gov. Joe Manchin's plan to bail out the state's underfunded pension plans by a majority of 54 to 46 percent. The vote was a victory for Don Blankenship, chairman and CEO of the Massey Energy Co., who spearheaded an ad campaign to defeat the bond issue. But it may not be a triumph for citizens, who now face the prospect of seeing increasing amounts of the state's general fund budget go into the pension funds every year. Defaulting on the state's obligations to retired employees is not an option.

For a fellow who wants to go the U.S. Senate, Maryland Lt. Gov. Michael Steele doesn't seem overly awed by the institution - or the leadership of either major party. And, for someone who at times has been portrayed as the Republican Party's "get along, go-along" guy, in a Wednesday interview Steele seemed to have found a strong voice of his own. I asked the 47-year-old candidate these questions: Why do you want to be a U.S. Senator? "Because the U.S. Senate needs a voice that represents the people of Maryland and is prepared to work for them and listen to what they have to say," Steele said, adding that he'd heard plenty on the campaign trail.

ANNAPOLIS -- Lawmakers are criticizing a proposal to shift some pension costs to counties, saying the added expense could lead to higher property taxes or reductions in county services. Pensions for teachers, other school system employees and community college staff would become partially a county responsibility under a bill being considered by the Maryland General Assembly. Lawmakers have estimated that Washington County could need about $6.5 million to meet that need. "Obviously, it's going to have a significant impact on the county," said Washington County Commissioners President John F. Barr.

Pension forum set for July 29 To the editor: During the latest session of the Maryland General Assembly there was a great deal of discussion regarding the Maryland State Retirement and Pension System. Reports from the Pew Center on the States and the Mercatus Center at George Mason University have raised significant issues with pensions from states across the country. Additionally, the legislature decided that a commission would be convened to study the situation and make recommendations for the 2011 session.

Discontented lawmakers gathered Thursday for a briefing on the perceived “war on rural Maryland” - and to redouble their commitment to combat it. Sen. E.J. Pipkin, R-Caroline/Cecil/Kent/Queen Anne's, the Senate minority leader, briefed about 15 legislators, focusing on PlanMaryland, the state's new effort at managing growth. The discussion moved to topics such as septic systems, water improvement plans, property rights and gas drilling, as lawmakers aired their dissatisfaction with what they see as unfair urban-centric governance.

Pennsylvania Gov. Tom Corbett on Tuesday laid out a budget plan that calls for increased spending for public schoolchildren, senior citizens and individuals with developmental disabilities after years of cutting or flat-funding many programs. Corbett also vowed to tackle some of the state's biggest issues, such as crumbling roads and the troubled pension system. He re-emphasized initiatives to replace state-run liquor stores with twice as many privately operated wine and liquor stores.

Despite what opponents Michael Steele and Josh Rales have said about their lack of experience at the congressional level being a plus, Rep. Ben Cardin, D-Maryland, disagrees. In recent interviews, Rales, a Democratic businessman making his first run for public office and Steele, Maryland's Republican lieutenant governor, have both tried to make a virtue of the fact that they are congressional outsiders. In town Tuesday to speak to a meeting of United Auto Workers' retirees, Cardin rejected the idea that experience will hinder rather than help the person who replaces U.S. Sen. Paul Sarbanes, D-Md.

After it was revealed in June that Hagerstown Mayor Robert Bruchey and four members of the city council had spent $800 in taxpayer money on a holiday party, a friend of the mayor called me to say that this was much ado about not a whole lot. What ought to be publicized, my source said, was that Bruchey has saved the city thousands of dollars by not taking the health care insurance he is entitled to as a city employee. Nor has the mayor enrolled in the state retirement system, which covers most city employees.

By JULIE E. GREENE Staff Writer Hagerstown taxpayers could face diminished services or property tax increases in July because of a $9.96 million debt the city owes to the state of Maryland's pension system, officials said Tuesday. A visibly angry Mayor Steven T. Sager, his speech peppered with four-letter words, asked a Maryland State Retirement Agency official on Tuesday afternoon why the city owes at least $9.96 million to the state when the city has made all required payments to the pension fund.

Somewhere, Del. Andy Serafini is coming to life. He does this - he has earned that right - every time there is more bad news about the Maryland pension fund. And there was bad news again this week, following reports that the fund had earned a meager 0.36 percent return in fiscal 2012, when the state had been counting on 7.75 percent. And don't bother with any jokes about buying Facebook stock, because the state reported that it was done in by its “international investments.” Oh no. Please don't tell me Maryland was long on ouzo.