Archives for the day of: May 29, 2012

I’ve just asked our Assistant Superintendent for number of employees:

We have a total of 310 employees, including 180 teachers.

2011-12 enrollment = 1756
2012-13 projected enrollment = 1740 (as presented at BOE meeting)

One employee for every 6 students.

AND SEE:
projected enrollment
16 new houses, not 50

While Americans are typically earning less than 1 percent interest on their savings accounts and watching their 401(k) balances yo-yo along with the stock market, most public pension funds are still betting they will earn annual returns of 7 to 8 percent over the long haul….

[snip]

In New York, the city’s chief actuary, Robert North, has proposed lowering the assumed rate of return for the city’s five pension funds to 7 percent from 8 percent…. But that change would mean finding an additional $1.9 billion for the pension system every year….

…to many observers, even 7 percent is too high in today’s market conditions.

“The actuary is supposedly going to lower the assumed reinvestment rate from an absolutely hysterical, laughable 8 percent to a totally indefensible 7 or 7.5 percent,” Mr. Bloomberg said during a trip to Albany in late February. “If I can give you one piece of financial advice: If somebody offers you a guaranteed 7 percent on your money for the rest of your life, you take it and just make sure the guy’s name is not Madoff.”

4 is not 2.

35 is not 2.

Also, and by the same token, 8 is not 7.

The typical public pension plan assumes its investments will earn average annual returns of 8 percent over the long termm…. Actual experience since 2000 has been much less, 5.7 percent over the last 10 years….
Public Pensions Faulted for Bets on Rosy Returns
By MARY WILLIAMS WALSH and DANNY HAKIM
Published: May 27, 2012

8 is not 5.7, either.

The stock market collapse of 2008 decimated public pension fund investments, and municipalities are now being asked for greater contributions to make up for the losses. The impact has been drastic: Three percent of New York property tax collections were used to pay pension costs in 2001; by 2015, pension costs are expected to eat up 35 percent of property tax collections.
Deficits Push N.Y. Cities and Counties to Desperation
By DANNY HAKIM
Published: March 10, 2012

Earlier this month, we established the fact that 4 is not 2.

35 is also not 2.

AND SEE:
School mills, revaluation, etc.