The state retirement system will need an additional $287 million infusion in the next budget cycle compared with the current state budget in order to keep it in the black.
Sandy Matheson, the retirement system's director, told the Kennebec Journal the Maine Public Employees Retirement System will need an estimated contribution of $448 million in 2012 and $468 million in 2013, totaling $916 million for the upcoming two-year budget cycle, compared with the current two-year cost of $629 million. The fund lost nearly 19% in fiscal year 2009 and so far has gained 11% in 2010. The state is required to pay off all the debt by 2028.
Meanwhile, the finance commissioner's office informed state agencies this week they have to cut $100 million from their budgets for the current budget cycle because Congress has not extended Medicaid reimbursement payments by six months to the states, according to Capitol News Service. The largest cuts will come from the Department of Education, which must trim $39.7 million, and the Department of Health and Human Services, which must cut $29 million.
State agencies will submit final budget cut plans by Sept. 1, and the governor's office will issue a curtailment order by Oct. 1 if Congress does not extend reimbursement payments, according to the news service.
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Go to the article from Capitol News Service >>