Finneran pointed out that the reserve funds that had been built up during the boom years of the late '90s have been depleted over the past two fiscal years. At the beginning of the current fiscal year, the state only has some $300 million in reserve.

The Speaker went on to explain that the number quickly rises towards $2 billion once inflation is factored into other fixed budgetary costs. For instance, the state's $6 billion Medicaid budget has been growing at a rate of 15% a year, which alone will increase the budget by $900 million.

As dire as the fiscal outlook may be, disaster has so far been averted in the current budget due to the careful planning and saving in the reserve accounts. Throughout the late '90s, the state set aside approximately $2.5 billion in "rainy day" funds to protect against a recession.

"Our members were receptive in hearing the straightforward message that the Speaker delivered. Retirees have endured good times, as well as bad over the years and know that this recession is just part of the cycle," said Association President Ralph White. "The Association supported the Speaker's position in the late 90's to set aside money in the rainy day fund.

"It would have been easy to spend the money, but in retrospect saving it was the right thing to do. Without that money in the bank, the budget cuts would have been far worse this past year."

"Many of you lived through the depression and World War II. You know the value of saving for a rainy day and I am very appreciative of the support this Association has given to us in our efforts to prepare for tough times," commented Finneran.

Despite the tough times, the much maligned House Speaker made it clear that the state's budget should not be balanced on the backs of retirees. During the meeting members expressed their gratitude for the legislature having overridden the governor's health insurance veto, which would have increased premiums by 120% for some members.

"Pensions are earned, not given. You (retirees) should be able to live with the dignity and a reasonable expectation of comfort in knowing that your benefits are secure," explained the House Speaker. "We were faced with a host of tough choices this year as to what had to be cut. However, I feel strongly that dramatically increasing retirees' insurance costs is not the proper course of action for us to take."

Finneran went on to say that he is proud of the progress that has been made in the funding of the State and Teachers' Pension Fund. He reminded members that during the '90s the state placed hundreds of millions of dollars of additional funds into the pension system.

"Ralph White and I fought hard to stay on course with the pension funding and tried to avoid the cuts in the appropriation. It was a very difficult decision, but given the times which we face, we had no choice but to agree to delay full funding until 2023," continued Finneran.

"I think our members were impressed with the Speaker's candidness. Many had never before met him. It was a good opportunity for our members to listen to what he had to say and form their own opinions not tainted by press reports," commented Association Legislative Chairman Bill Hill. "Despite what the media says, Tom Finneran has been there for this Association time and time again. Our members are very grateful to have his support."