Martinelli Calls Conduct "Pension Gimmickry Richard Martinelli, candidate for Mayor of Yonkers, today blasted Assemblyman Mike $pano for introducing legislation in Albany that will cost the Yonkers School District over $2 million per year in additional debt service. The legislation (S.5752/A.8293-A) was introduced last week by Senator Jeff Klein and Assemblyman Michael Spano and authorizes the Yonkers School District to issue 15 year bonds through the New York State Dormitory Authority.
These bonds will cover up to 125% of the school districts 2010/2011 teachers' pension contribution. Proceeds may be used to offset the amounts by which pension contributions, over the next several years, exceed the 8.62 percent of payroll (the 2010/2011 contribution rate) according to E.J. McMahon of the respected Empire Center for New York State Policy, who labels the 15 year bonds as "pension gimmickry" and estimates that $20 million in borrowing will cost taxpayers "well over $2 million in annual debt service".
The bonding authorization was requested by the school district. Richard Martinelli said, "Assemblyman Mike Spano's legislation to authorize approximately $20 million in new debt for the Yonkers school district is crazy. We're having big enough fiscal problems already and now Assemblyman Spano wants to drown Yonkers taxpayers in even more debt; that's irresponsible and it's wrong.
"As they campaign for Mayor of Yonkers, professional politicians like Assemblyman Spano and his cohorts in the Yonkers City Council, Chuck Lesnick and John Murtagh, seem intent on creating temporary stop-gaps for Yonkers budget problems instead of addressing the real problem; too much spending.
They can't seem to be forthright with the taxpayers and they have no idea what the term 'fiduciary responsibility' means. Together, they are leading Yonkers to the brink of a financial melt-down.
"I'm the only businessman running for Mayor. I understand what it means to balance a budget and to live within one's means. I also understand what it means to say 'NO' we simply can't afford more debt. As mayor, I'll put my business skills to work to cut spending and balance our budget and I'll be an elected official who will say no to the temporary fixes and one shot deals that drag our city deeper into debt."