New York Wants to Borrow From Pension Fund, to Pay the Fund

The New York Times reports:

Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.

And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.

As word of the plan spread, some denounced it as a shell game and a blatant effort by state leaders to avoid making difficult decisions, like cutting government spending or reducing pension benefits.

What could be more irresponsible than this? Nothing. The SEC probably should be shutting this type of practice down. This is fraud on a grand scale. Is this the future of ObamaCare? Do you really want to own New York state debt over the long term?