Fri October 21, 2011
The Pench What's Next: Chafee says he'll consider changes
By IAN DONNIS
PROVIDENCE, RI – Governor Lincoln Chafee says he's willing to consider changes to his approach for strengthening locally administered pensions.
Thirty-six locally managed pension plans represent about $2 billion in unfunded liability. That's separate from the $7 billion in liability for state-managed plans. Chafee insisted on including the local pensions in the overhaul plan he submitted this week with State Treasurer Gina Raimondo.
The Rhode Island League of Cities and Towns says it appreciates the state officials' efforts to lower pension costs for communities. The league says it has some concerns about the approach, however, and will submit amendments in response.
Chafee says he hopes the league's recommendations will strengthen the approach for fixing local pensions. He says a failure to address those pensions will spark higher property taxes or cuts in municipal services.
More from our series "The Pench What's Next" can be found here.
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