With state employee layoffs underway, and a cut in local aid forcing layoffs in the cities and towns, the Legislature and the Governor simply have to implement a rollback freeze, along with considering other revenue sources.

Under the rollback of the income tax rate from 5.85% to 5%, we have already experienced a drop in the rate to 5.6% last year, and this year (1/1/02) there was a second reduction to 5.3%. In the rollback’s final phase beginning January 2003, the tax rate would be reduced, a third time, to 5%.

It is true that the voters overwhelmingly approved the tax rollback just eighteen months ago. That was at a time of unequaled economic prosperity, when the state was awash in billion dollar surpluses. Times have dramatically changed.

Rarely does anyone rejoice in paying taxes. However, as public retirees, our members recognize this fact: government and the essential services it provides cannot operate without adequate funding. Since the state’s Constitution requires a balanced budget, the state simply cannot spend money it does not have.

In addition, many voters believed the hollow promises made by the Cellucci/Swift Administration that the tax cut would not negatively impact popular state programs. Swift’s stubborn adherence to the “no new taxes” pledge is not effective leadership. Instead of acknowledging that the circumstances have changed, the Acting Governor holds firm on her pledge to veto any legislation that would raise taxes.

Instead, Swift has cobbled together a variety of proposals ranging from altering the pension-funding schedule to closing three state prisons to balance the books. As we report on page 1, current estimates place the deficit for the coming fiscal year at $2.3 billion.

Our members have endured tough times before and are willing to do their part. To balance the budget at their expense, either by delaying pension funding or through increased insurance costs, is disgraceful.

This Association has a long history of supporting candidates, regardless of party, who understand and support retirees. Forcing our members to patiently wait for increased COLA benefits, while playing fiscal shell games with the pension-funding schedule and health insurance costs demonstrates a lack of regard for retirees.

Political leadership is achieved through finding common solutions to complex problems, not by finding the most simplistic solution to get through the next election cycle. As Acting Governor, Jane Swift must move beyond the dusty playbook of the past and work with the Legislature in a bipartisan manner.

We hope that in the coming weeks, the Administration and Legislative leadership can come together to solve this fiscal crisis. This Association and our members will do our part, but we will not waiver from our commitment to protect the rights of public retirees.