Pension Reform Saves Maine Taxpayers $1.7 Billion

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Pension Reform Saves Maine Taxpayers $1.7 Billion
One of the big victories for Maine taxpayers were the pension reforms included in the recently passed state budget.  The changes limit the growth of retirement benefits for 75,000 teachers and state employees.  This reduces the stifling $4.1 billion pension debt to $2.4 billion, a stunning 41%.
This huge $1.7 billion debt reduction achieves two things:

1. The retirement plan is now more fiscally sustainable because it's more affordable for state government.  Our teachers and state employees should have more confidence that the pension checks will be there when needed.

2. Maine taxpayers will now spend $150-275 million PER YEAR less over the next 17 years until the debt must be paid off.

These huge annual savings are being used to create a business-friendly climate in Maine to attract capital investment and jobs.  The resulting increased economic activity will generate more tax revenues so we can better fund state government services, and pay our bills on time.

This is the largest tax cut in Maine history.  Reducing our pension debt by $1.7 billion.  It all adds up.  It's all part of the overall strategy to reduce the cost and complexity of living and doing business in Maine.  The new leadership team in Augusta is steadily putting the pieces in place to turn this battleship in a different and healthier direction.  More good work ahead!

Best wishes,