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January 5th, 2012 6:48 pm
Rhode Island’s Pension Reform Success

The Manhattan Institute is honoring Rhode Island Treasurer Gina Raimondo for doing the seemingly impossible – reforming a Democratic state’s public pension system so that it starts to realize savings within years, not decades.  (The key is changing the contribution and pay-out systems for everyone, not just new hires and non-vested employees.)

But beyond dollars and cents, Raimondo made an appeal that should convince people whether it’s made by her or Paul Ryan.

Without real reform, Rhode Island’s annual pension costs would soar by hundreds of millions of dollars a year — a large figure in a state of one million residents. Raimondo emphasized that the ever-rising demands of the pension system would mean less money available for education and municipal services, and a deterioration in the effectiveness of government.

The emphasis is mine, but it is one Raimondo shares.  Government must do (some) important things and in certain areas it can even do nice things, but it cannot afford to do anything if a policy item starts to eat up the entire budget.

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