The problem, similar to that in other states, has to do with the way pension benefits are valued.
Public pensions such as Washington’s operate under special accounting rules, one of which allows them to assume a long-term rate of return on their investments. Most plans have picked a rate between 7 and 8 percent; all but one of Washington’s plans assume 7.9 percent.
That assumed return is significant, because another special rule lets public plans use it as their discount rate — something corporate pension plans were forced to abandon nearly two decades ago.
Critics such as Munnell and Biggs say this rule ignores the fact that pension benefits are effectively almost as guaranteed as state bonds. That, they say, means they should be valued similarly to bonds.
“The way to value a stream of promised benefits is with an interest rate that reflects the riskiness of the promised benefits themselves, not the expected returns,” Munnell said.
… It’s as well-written a summary of a pension crisis story as you’re likely to get, and this is a story that’s being repeated all across the nation. Then, if you haven’t already, have a look at how much you or your loved ones are relying on generous promises made by state bureaucrats to fund your retirement—and start asking some hard questions.
Officials told CBS 2′s Kramer that nearly 80 percent of those who graduate from city high schools arrived at City University’s community college system without having mastered the skills to do college-level work.
In sheer numbers it means that nearly 11,000 kids who got diplomas from city high schools needed remedial courses to re-learn the basics.
N.Y. schools’ teacher-eval costs outpace federal grants
ALBANY — New York’s small-city, suburban and rural school districts expect to spend an average of $155,355 this year to implement the state’s new teacher and principal evaluation plans, a report Thursday from the state School Boards Association found.
The one-year costs outpace the four-year federal grant provided for funding the program by nearly $55,000, according to an analysis of 80 school districts outside the state’s “Big Five.”
“Our analysis … shows that the cost of this state initiative falls heavily on school districts,” said Timothy Kremer, the association’s executive director. “This seriously jeopardizes school districts’ ability to meet other state and federal requirements and properly serve students.”
The evaluation system is a requirement for receiving funds from President Barack Obama’s Race to the Top initiative. In 2010, New York was awarded $700 million in Race to the Top grants. About half of the funding will go to local districts over four years to implement the evaluation system and other initiatives.
More than 20,000 college-bound students are seeking state financial aid for the first time under California’s new Dream Act laws that allow them to get the help despite their immigration status.
While far from a complete picture, that number is the best indicator yet of how many students hope to benefit from a pair of laws that could radically change the college experience for a generation of students whose parents brought them to the U.S. illegally when they were young — the same group that has taken center stage in the national immigration reform debate.