There’s been reporting of the woes of Nashua budgeting, such as the cost of a proposed new school in Ward 9 replacing the downtown Elm Street Middle School, the expense associated with converting Alec’s building from taxable property to a performing arts center, and ongoing need to fund the underfunded city pension obligation.

Regarding the pension obligation, city government seems to place some of blame on the State Legislature for not appropriating funds. Having served both in the Legislature and the decennial pension review commission, I’d like to add a little perspective.

The pension system is now run, and run very well, by the independent NH Retirement System. This restructuring was created in response to past abuses of increasing benefits without providing funding, leading to the current $5 billion deficit. About 80% of the pension obligations are owed to city and town employees, and the remaining 20% to state employees. If the pension system was fully funded, that missing $5 billion could be earning 7% annually and providing $350 million for additional pension benefits, such as COLA.

Rather than debating how to provide additional benefits, both the state and local governments have to step up and begin pay back their share of money that should have been set aside years ago. The complaint by the City of Nashua is that the State budget is not throwing them money to cover their past irresponsible spending. Well, the State has provide their own pension obligation payments as part of the biannual budget. And so does Nashua.

Nashua has already ignored the spending cap that the voters put in place several years ago. Now they want the State to somehow raise additional money and give it to Nashua? Won’t that have to come from the pockets of Nashua businesses and citizens, as well as everyone else in NH? Does Nashua want some new broad-based state tax to bail out local spending? City government should step up to the problem that they created.

Municipal elections are coming up in November. Alderman are up for re-election. Isn’t it time to retire the current members and bring in fresh faces that can act responsibly?

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