State Budget Solutions Statement on Geithner's Decision To Stop Funding Pensions
Alexandria, VA - Bob Williams, President of State Budget Solutions (SBS), a national nonprofit organization advocating for fundamental reform of state budgets and pensions, released the following statement regarding Treasury Secretary Timothy Geithner's decision to stop putting money into pensions. On December 31, the U.S. Government reached the $16.4 trillion borrowing limit and in response, Sec. Geithner used accounting gimmicks so that the country did not default on its debt. The main gimmick suspends the issuance of new debt for two government retirement funds which will "save" about $200 billion and avoid default for two more months.
"Secretary Geithner raid on the money-market fund in which many federal employees invest as part of Thrift Savings Plans (TSPs) is not only irresponsible, it also risks having the Bond Rating Agencies lower the U.S. credit rating.
The fiscal cliff agreement passed by the Senate yesterday increased the national debt by $4 trillion over the next ten years. When Geither became Secretary of Treasury, the national debt was $10.6 trillion. In just four years, it has skyrocketed to $16.4 trillion.
Rather than using accounting gimmicks to avoid the debt ceiling, Secretary Geithner should be advising the President on how to both reduce the annual budget deficit as well as reduce the national debt and reform entitlements. The President agreed to both in the 2011 Budget Control Act when the debt ceiling was raised in 2011. Geithner should change course and help the President make those both happen instead of resorting to budget gimmicks at the expense of federal workers and taxpayers as a whole."
To schedule an interview with Bob Williams please contact Meghan Tisinger at Meghan@TKOCommunicationsLLC.