Twenty-six-percent decrease will affect municipality's budget

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PLATTSBURGH — A proposal to head off expected increases in the State Employee Retirement System is not sitting well with City of Plattsburgh leaders.

Because of the struggling economy, the state's pension fund is expected to decrease by 26 percent, which means municipalities will have to pay more into the fund.

Plattsburgh's increase could be as much as $600,000 for 2011.

To deal with the problem, State Comptroller Thomas P. DiNapoli is proposing a plan that would allow municipalities to spread the cost out until 2016.

But Mayor Donald Kasprzak is not interested.

"That is unacceptable. As mayor, I do not accept this kind of credit-card mentality and will not put this on the backs of our taxpayers."

Kasprzak said he would rather take the hit in one shot instead of delaying payments at higher rates.

"We will take this directly and head on, and before we raise any taxes, we will make the difficult decisions, like we have since I've been mayor," he said.

"We are not going to be like Albany and pass this debt on to future generations."

Councilor James Calnon (I-Ward 4), who serves as the council budget officer, was skeptical about the comptroller's plan as well.

"It's like paying the mortgage with your credit card. It doesn't make sense."

Municipalities must pay into the system 9.5 percent of total salaries for non-police/fire workers and 17.5 of salaries for police and firefighters.

Contributions for police and fire employees are higher because they can retire after 20 years of service and likely will be collecting pensions longer.

Calnon, who receives a state pension, agreed with the mayor that the city should handle the increase right away and make cuts if needed.

"You can't put off everything until tomorrow because sooner or later, tomorrow comes. This is a great and very generous retirement system, but it is expensive."

E-mail Joe LoTemplio at: jlotemplio@pressrepublican.com