From The New York Times:
New York Plan Makes Fund Both Borrower and Lender
By DANNY HAKIM
Published: June 11, 2010
ALBANY — Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.
And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.
As word of the plan spread, some denounced it as a shell game and a blatant effort by state leaders to avoid making difficult decisions, like cutting government spending or reducing pension benefits. [read more]Wouldn't it be simpler to say there is no money available so payments are suspended? Oh, wait. That might mean having to fix the pension fund system. Mea culpa.
Hey, Michigan. Are you taking note of this technique? You too, California. This is "progressive" accounting.