Monday, January 18, 2010

RH Jones: Retired teacher spending needed to keep Ohio's economy afloat

From RH Jones, January 18, 2010
Subject: Retired STRS OH educators'pension + HC/Rx cushions OH recession
To all:
Now, as in the past, our retired teacher spending in Ohio (OH) has helped cushion downturns in the states’ economy. However, during upturns in the economy, it is retired educators who fail to keep up. The reason is the rise in HC/Rx costs and the lack of a compounding COLA that keeps us up with inflation; therefore, in the next economic downturn retired teachers will have even less to spend in cushioning the Ohio economy – a smoothing of the economy, if you will.
Retired teacher spending is vital to keep Ohio’s economy from bottoming out. Can a sensible person think of what OH would be like without this infusion of money? The damage would be catastrophic – ruination, if you will.
Considering as a secondary solution to both the state economy and retired educators could be a temporary or permanent income tax break for retired educators and perhaps active educators as well. Retired educators would have a greater initiative to live in Ohio and it would help the actives to pay a new employee increase. The STRS OH does need help to attain the goal of a 30-year funding consideration. Interest investments are now doing better but nevertheless, growing seed money through investments cannot sustain growth without increased contributions. Therefore, this income tax break should only be for retiree and possibly active educators due to the fact that an income tax break for all OH taxpayers, as proposed by GOP Governor Candidates John Kasich and Mary Taylor, would be too drastic of an upset the operation of the state government, therefore, to be a serious consideration for a thoughtful stimulation for the OH economy. (Please see Joan Platz’s email Education Report for today.)
This is my opinion,
RHJones, retired teacher STRS OH member
Larry KehresMount Union Collge
Division III
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