May 13, 2013
The mayor of Baltimore proposed that more city workers should pay toward a shortfall in their pension fund. City workers’ pension and health care fund is supposedly 681 million dollars short of what is needed over the next 10 years. The proposal would mean a 5% per year pay cut for city workers.
At exactly the same moment, the Baltimore Development Corporation proposes the city give a 107 million dollar special tax break to yet another fancy waterfront developer, Harbor Point Group. These deals, called tax increment financing, which the city does by the dozens, pay for redoing roads and utilities. The site to be developed will become regional headquarters for multi-billion dollar energy corporation, Exelon.
Baltimore City politicians have the spending backwards. It’s the kind of math that politicians love – and THEIR pension fund is fully funded with generous benefits!