While Gov.-elect Andrew Cuomo has said he wants to cap property-tax increases at 2% a year, some local officials in New York state are seeking to boost rates before he even gets to Albany—in part to keep up with the rising cost of government workers’ pensions, officials say.
The push comes as many towns, cities and counties are putting together budgets for next year.
The state comptroller’s office announced in September that it was requiring greater pension contributions, and in recent weeks some cities and counties have responded in part by proposing higher property taxes for 2011. Comptroller Thomas DiNapoli, a Democrat, said at the time of the announcement that the increased contributions aim to make up for investment losses amid the market downturn. Also, in line with trends nationwide, pension shortfalls are resulting from government workers living longer and benefits that were expanded during flush times beginning to come due, analysts say.
Local governments in New York will contribute on average 16.3% of an employee’s salary in the 2011-12 fiscal year, up from the current 11.9%, the comptroller has said. Localities pay the state pension funds, which administer the retirement accounts of many local government workers. The average contribution to the retirement system for police and firefighters will rise to 21.6% of an employee’s salary for the 2011-12 fiscal year, up from 18.2% currently. Those increases are among the highest in recent years, according to a spokesman for the comptroller’s office….