State Plans to Borrow Money From Pension Fund in Order to Pay Back Money Owed to Same Pension Fund

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Gimme a minute ... I'm thinking ...

Governor Paterson and legislative leaders have made a tentative agreement that will allow the state to make their required annual payments to the state pension fund by borrowing this money — nearly $6 billion of it — from the very same pension fund. Under this plan, the state would borrow money for the next three years by agreeing to pay more back beginning in 2013, at which point Governor Paterson and other state officials are hoping that "the stock market will have rebounded to such a degree that the state’s overall pension contribution burden will have been reduced," according to the Times. On the other hand: "The maneuver would cost the state and local governments about $1.85 billion in interest payments, according to an estimate by the Senate." The plan has been denounced by some as "a shell game and a blatant effort by state leaders to avoid making difficult decisions, like cutting government spending or reducing pension benefits." You know when you're in over your head and you're finally just like, "I will deal with this later ... " Well, so does Albany.

'State Plan Makes Fund Both Borrower and Lender' [NYT]