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On the -- But first bruised broken busted public union pension plans.
Far and wide in many states being squeezed in a financial vise grip because of them.
But you -- saying 0401 K all the way adopting 401 -- for noon at state and municipal workers.
This after the State's pension fund lost 22% of its assets during the market plunge back in 2008.
To explain it all joining us now.
I'm -- -- governance rating of being here.
Big question all the other governor has -- know this on shore have did you manage to do that in New York State.
Well we make tough decisions and we have brought people that that the bargaining table on.
Or just solutions -- really were win win.
The employees are protected -- in the system are able to be maintained.
That new ones coming in the system have a different track.
And we have a defined contribution now rather than -- defined benefit.
And we allow people to use for a one case.
And to the employee that's a benefit that you have a pension program grows that's portable and they can lead to theirs.
How did you get unions on board with that.
Well the good news for us in -- were right to work state in the unions have minimal power here.
We do have you -- public employees' association.
Which we've always had good communication with -- a good working relationship.
And they recognize that what we were doing.
As more states are doing was not sustainable we cannot continue to afford that kind of growth with a defined benefit.
And so again the wrist has been put upon taxpayers is not sustainable.
So they understood that and we worked together -- -- to find the solutions acceptable.
Again we protected the employees are currently in the system so there's no harm there and just for new ones coming in we have now an opportunity for them to have a little different track.
Which has its own benefit -- again have a 41 K there's not a bad thing haven't ability to have a portable and grow.
With the market there's not a bad thing and believe it is an asset to your -- is a very good thing.
Governor as you pointed out you -- is a right to work states and that raises the question of how easy would it be for other states to follow in your footsteps and move.
-- new municipal and state -- to a 401K plan.
Well I'm sure it's not as easy and other states that have strong more labor unions as opposed to here and you talk.
But again I think for everybody's benefit long term.
There's going to have to be some tough discussion and tough negotiations.
You see many states that really are facing really a bankruptcy situation.
Because of pension plans.
Increasing Medicaid -- and entitlement programs which are just not sustainable the taxpayers can afford to continue to pay these government pensions.
I I guess that's why they called leadership.
Governors of all states and that legislators -- got to sit down together.
With their state employees and government employees and say.
What can we do going forward because this what we're doing now is not -- and we cannot afford to have these kinds of pension they're busting our budgets.
Well speaking of budget busters and cuts the state of the union is tonight and I believe your state of the state address is tomorrow is -- not.
So what are you gonna talk about -- is that right.
It is right we actually had scheduled tonight but pres Obama -- taken over the spot so we've moved to Wednesday.
And and we're really talking about good things you -- to again we're very optimistic our economy is growing.
We are very fiscally fit we still have money in a rainy day fund we've made tough decisions early on so we don't face crisis is today.
And this goes prior to my leadership was governor goes past governors -- legislators.
That we've been very physically prudent and how we spend the taxpayers' dollars.
Enhance our economy is now growing again about a four and a half percent clip was the population -- -- for inevitable orders from California.
We actually have had a number of companies that moved in from outside of our borders from other states including California.
I would try to be a very business friendly climate we've reduced our income tax from seven to five.
We've cut sales tax off of food so we -- our sales tax.
Now we're down -- and a complete overhaul of business regulations to make sure that the regulation we have in place are sensible.
Or need full and and if they're not we're gonna weed them out and and make sure that business is not encumbered.
Again we understand that job growth comes from the private sector we're trying to empower the private sector here and you talk.
Governor is great to see you governor Gary -- of the state -- -- top take care.
Thank you you too.
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