If you wonder why Maine can’t shake its high-tax reputation, look no further than the recently ended legislative session.
The Legislature, with Democrats in control, took on two new financial obligations that seem certain to grow.
On Tuesday, Gov. John Baldacci conducted a ceremonial signing of a bill guaranteeing that the state will subsidize health care coverage costs for the state’s retired police officers and firefighters.
Beginning next year, taxpayers will foot 45 percent of the bill for health insurance for retired public safety workers until they turn 65.
Twenty or 30 years ago, state, local and municipal governments across the country granted generous health and retirement benefits to their workers, often in lieu of larger pay increases.
That was before health care costs began exploding at double-digit rates. Today, those promises are coming back to haunt taxpayers.
The bill Baldacci signed Tuesday in the presence of smiling union leaders will cost the state about $1.3 million in fiscal year 2008 and $3.1 million in fiscal year 2009. Current and retired cops and firefighters will contribute about $1.9 million.
But, unless something miraculous happens, those costs will rapidly increase. First, if recent history is any guide, medical expenses will grow much more quickly than the overall rate of inflation.
Second, since most government workers can retire after 25 years – a benefit practically unheard of in the private sector – more safety workers who would have continued in their jobs or found second jobs after retirement will take advantage of the state’s new plan.
The law requires that the safety workers be at least 50 years old before they can retire, which – for some cops or firefighters who start in the job right out of school – means more than 25 years on the job. One of the amendments that earned the bill enough support to pass set the age minimum.
Thus the state has incurred another costly long-term obligation.
Earlier in the session, the Democratic Legislature and governor pushed through a minimum $30,000 annual salary for teachers, with the promise of more state aid to school districts to offset the expense.
That cost is bound to increase as the new minimum puts upward pressure on school districts to maintain their salary schedules for all other teachers.
Both new benefits were opposed by the Maine Municipal Association, not only because they will cost taxpayers more money but also because they are end runs around the local contract-bargaining process that has served Maine well for generations.
We agree.
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