HELENA – Gov. Brian Schweitzer’s proposal to fix the state’s public employee pension system cleared a small legislative hurdle Tuesday, and received some support from Democratic candidate for governor Steve Bullock.
A legislative interim committee voted to move the framework of Schweitzer’s plan to another panel of lawmakers who will further analyze the funding sources. The State Administration and Veterans’ Affairs Interim Committee said it will then wait until November to make a decision on whether to send the measure to the full 2013 Legislature.
The aggressive fix asks both employees and their state and local government employers to pay more into the system. It also earmarks increased revenue from some natural resource development to fix the problem.
Without action, the projected shortfall for the state’s government worker pension system will exceed $3 billion in 30 years.
Schweitzer’s proposal faces a long road. The final say won’t come until next year after he leaves office, and the measure’s fate likely will be tied to November’s election results.
Republicans are largely less supportive of it.
GOP candidate for governor Rick Hill has already said he wants to switch new employees to a defined contribution plan, and doesn’t like the way Schweitzer’s offering earmarks coal tax money for the pensions.
Democrats argue the current system can be fixed.
Attorney General Bullock, Hill’s opponent in the November elections, on Tuesday endorsed a key concept of Schweitzer’s proposal.
“Steve believes the governor has a responsible proposal, and he believes that in any situation, both the employee and employer are going to have to chip in,” said Bullock spokesman Kevin O’Brien. “While not a crisis, it’s a problem that we need to start fixing now — we can’t wait any longer.”
Employee unions also are backing the proposal. They say members are willing to pay more if there is a shared contribution by all parties to repair the system.
Another key sticking point likely will be the requirement that local governments kick in more cash for their employees who are in the system.
But Schweitzer budget director Dan Villa argued the system cannot be fixed for current employees, who contractually are entitled to the pension, without putting more money into it.
“There is no way to fulfill the constitutional obligation without more cash,” Villa said.