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Other states, cities set example for tackling financial troubles

Knowing that other cities are facing financial crises similar to Butler's doesn't help solve the city's problems. And seeing how another state is tackling its public pension crisis doesn't mean that elected officials in Pennsylvania will do the right thing.

But knowing what's happening elsewhere can be instructive, and could help taxpayers here press state or local officials to do what's necessary.

In New Jersey, taxpayers are seeing signs of hope in Gov. Chris Christie's plans to address the state's public pension crisis. Christie says he is pushing reforms that include rolling back a 9 percent pension hike passed by state lawmakers in 2001. That pension boost, called "irresponsible" by a state newspaper, was similar, though smaller, to the 2001 pension grab passed by Harrisburg lawmakers. That pension boost awarded state lawmakers a 50 percent pension increase and gave a 25 percent pension gain to other state employees and public school teachers.

In March, Christie rolled back the big pension hike for all new state hires. He also slashed benefits and prohibited pensions for part-timers.

An editorial on NJ.com, a website affiliated with major newspapers in the state, said the 2001 pension hike "should be rescinded for all workers as soon as possible."

That's exactly what should be happening in Harrisburg — a reversal of the 2001 pension grab.

Will Pennsylvanians see any state leader willing to follow Christie's lead?

The NJ.com editorial said, "Promises were made that can't be kept. Taxpayers need givebacks." Again, Pennsylvania taxpayers need givebacks, too.

New Jersey, with Christie's leadership, is moving in the right direction. Meanwhile, the city of Chicago, facing serious pension problems of its own, might also be setting an example for others to follow.

Mayor Richard Daley warned earlier this year that Chicago's day of reckoning over the city's pension crisis had arrived. About possible a solution, Daley said, "I hope it's controversial. It has to be. If it's not controversial, then it's not worth anything."

According to news reports, Daley is considering raising the retirement age, now 50 — which is unrealistically low and incredibly expensive. He also is talking about raising employee contributions and introducing a defined contribution, 401(k)-type pension plan for new hires.

When Daley says the solution must be controversial to be effective, he's right. And it's refreshing to hear a politician speak honestly about financial fixes and tough choices.

Philadelphia's mayor, Michael Nutter, supports "brownouts" involving three fire stations as a way to reduce city expenses, mostly overtime for firefighters. The city expects to save $3.8 million a year in overtime with the rotating closures.

Los Angeles and Milwaukee also are conducting rolling brownouts or taking fire trucks out of service to cut costs.

These financial problems are facing most U.S. cities. Business Week magazine reports that "One-fifth of U.S. cities surveyed by the National League of Cities have reopened contracts to claw back compensation from public employees, including firefighters."

In Miami, where 115 firefighters earned more than $150,000 a year in pay, overtime and bonuses, elected officials have approved $76.9 million in salary and benefit cuts. The city's financial crisis left no options.

As taxpayers across the country feel increasingly squeezed, there is a resentment in seeing certain public-sector workers paid such unsustainable wages and benefits. And at a time when most private sector workers have seen their economic situation stagnating, public support for such cuts and clawbacks will only grow.

Elected officials in Harrisburg, Pittsburgh and Butler should take notice of what's happening around the country and follow suit. It's time for taxpayers to get some relief.

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