Recently, Gov. Paul LePage and his administration have been beating the drum that the state’s pension system (MePERS) needs fixing. According to State Treasurer Bruce Poliquin, the state pension system’s unfunded actuarial liability (or UAL) needs to be completely revised because it’s causing a pension funding crisis that can only be addressed by increasing participant contributions and decrease benefits.

Participating employees currently contribute 7.65 percent of their pay (a portion of that goes to pay down the UAL) into the pension plan while the state contributes 5.5 percent; the state also pays 14.6 percent to pay off the UAL. Poliquin says the “. . . pension savings in this budget allows for taxes to be cut by $203 million over the biennium.”

How are they going to pay for this “crisis?”

The governor’s proposed budget calls for freezing the cost-of-living increases for retirees for up to five years and capping future cost-of-living adjustments at 2 percent in 2014 and beyond. He also wants to impose on current employees a 2 percent increase in contributions from 7.65 percent to 9.65 percent; raising the retirement age, and reducing benefits for unvested employees and new hires.

What is not talked about is that the state’s contribution will be reduced from 5.5 percent down to 3.5 percent, and that 2 percent won’t go to pay down the UAL, but would be used to reduce the income tax.

Since this money isn’t going to be used to preserve benefits or reduce the UAL, it is clearly a tax on teachers and state employees.

The $524 million that teachers, state employee and retirees will contribute to the two-year budget is being asked to offset $200 million in tax cuts; for example, lowering the state income tax, largely to benefit the richest people in Maine.

For a person earning between $28,000 and $48,000, the tax break would be $83. For those who earn more than $363,000, the tax break would be $2,770.

That is not a “saving,” it is a pocket-picking of the pensions of teachers and state workers to put money into the pockets of the wealthy.

The exact same pattern of a budget “crisis” is being used as the excuse to hammer lower-income and middle-class Americans. Administration officials claim there’s just not enough money — after giving tax breaks to the rich that deprive communities of resources needed to provide a decent place to raise families.

The truth is, there is plenty of money, but it is in the wrong pockets.

The short-term budget crisis wasn’t caused by teachers and state employees, and they shouldn’t be punished because of it.

Legislative reviews have routinely found MePERS to be actuarially sound. A 2010 bipartisan legislative study committee recommended staying the course with the current system.

The demand for rapid, brutal changes appears to be based upon an erroneous and highly political budget analysis and scare tactics. Teachers are being asked to take a pay cut and reduced retirement benefits to fund higher priority-programs and provide tax breaks.

The state needs a budget that is based on common sense solutions and isn’t balanced on the backs of the middle class. Maine citizens deserve common-sense solutions that work. If people want to get serious about solving the budget shortfall, then there needs to be a serious conversation about the fact that the state has a revenue problem and not a spending problem. Everything must be on the table, including raising revenue.

It’s basically the difference between right and wrong.

Teachers and public service employees are essential to the well-being and safety of Maine families and communities. The retirement plan is a promise made to the teachers and state employees that shouldn’t be abandoned. The benefits are earned over many years and those workers have earned and deserve a retirement with dignity.

David C. Projansky is the secretary/treasurer of American Federation of State, County and Municipal Employees Local 1458; he is also the secretary/treasurer of the Western Maine Central Labor Council.