Scary fiancial times in New York State

BUFFALO, N.Y. (WIVB) - Governor David Paterson is painting a dark financial picture for New York State, and many believe years of lavish spending led to the crisis.

Canisius College honor students are well aware the scary times in New York State.

Their professor, Dr. Kevin Hardwick, blames the state's inability to live within it's means, and a lavish state pension system that socks taxpayers.

Political commentator Dr. Kevin Hardwick said, "Most people don't have as lucrative a package a pension package as public employees."

Ten years ago, New York spent about 3.4 billion on pensions. That figure has jumped to seven billion.

Compared with the average private sector worker, government employees receive the gold standard of pensions.

One current payout allows workers to retire at age 55 with guaranteed benefits.

They contribute to their retirement plan for only their first ten years, and pay no state income taxes on their pensions.

The governor has proposed changes, namely, creating a new retirement tier.

News 4's Lorey Schultz asked, "Is the proposal going to make a difference?"

Dr. Hardwick said, "I think it would make a difference, not overnight."

"Over time, five years from now that would make a significant difference."

"The unions aren't going to favor it, but unions can't stop it if state legislators are for it."

New York's pension policies are far more lavish than most states, and one of the few that allows overtime to be included in pension calculations.

Free New York's James Ostrowski calls it a scam.

Ostrowski said, "I mean we've got people retiring who are making more in pensions than their jobs, and the thing is, everyone knows they're doing it."

"It's a sinister conspiracy to rob the taxpayer."

Unions have opposed pension reform for years.

Lawmakers often shy away too. However, this time they might think twice.

Dr. Hardwick said, "If they care about their constituents and taxes they're paying, they have to take a good look at it."

State budget officials say that over the next 30 years taxpayers would save 32 billion if the governor's Tier Five proposal is adopted.

Again, the unions are against it, claiming that the expense is a reasonable cost of doing business.