This is one step away from a ponzi scheme, and the fact that New Yorkers will be placated by this proves that on a certain level New York deserves what it gets. Paterson is desperate, and rightfully so given how dire things are there, so I can almost understand him kicking this can down the road but this beggars belief:

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.

Huh? Only government can make a plan like this and force it through. This would be like you and I taking out cash advances Visa cards not to pay off another card, but to pay off an outstanding Visa bill. It simply can’t work.

Paterson is hoping they can create more debt now because a decade from now the stock market will be booming, you know, because government is making it so easy for people to invest and make money? At least that’s what they’re claiming. In actuality they’re just putting on a show while they and their cronies milk what’s left of the system and move out of the city before it explodes:

Pension costs for the state and municipalities are soaring, a result of enhanced retirement benefits for public employees and the decline in the stock market over the past two years. And, given declines in tax revenue and larger budget shortfalls, the governments are struggling to come up with the money to make the contributions.

Under the plan, the state and municipalities would borrow the money to reduce their pension contributions for the next three years, in exchange for higher payments over the following decade. They would begin repaying what they borrowed, with interest, in 2013.

But Mr. Paterson and other state officials hope the stock market will have rebounded to such a degree by that time that the state’s overall pension contribution burden will have been reduced.

The maneuver would cost the state and local governments about $1.85 billion in interest payments, according to an estimate by the State Senate, though a number of factors could drive interest payments up or down.

Another oddity of the plan is that the pension fund, which assumes its assets will earn 8 percent a year, would accept interest payments from the state that would probably be 4.5 percent to 5.5 percent.

You ain’t seen tax revenue decline yet, New York. This plan benefits New York city and it’s virtual army unionized parasites, but guess whose pension funds are exempt from being raided?

New York city which has it’s own pension system. Of course, there are thousands upon thousands of workers servicing the larger metro area who are part of the pensions scheme. But New York, as usual, will be benefiting from sucking the surrounding area dry.

With the rich fleeing New York in droves tax revenue will continue to decline. Albany doesn’t care because they just need enough time to buy their way out of ground zero. This delaying tactic will buy the government elites enough time to bug out, get their houses in order and be outside of the NYC area when people realize the coffers are dry.

Look again at those bottom numbers. They’re not planning on keeping the pensions solvent. So what are they doing?

It’s obvious isn’t it? Paterson was scared that a shut down of New York for even one day would be the end. Right now the politicians are taking it day by day, trying to keep everything afloat and hoping that money will magically begin raining down on them from the sky. In the meantime how many are buying houses in other states?

If you live in New York, or anywhere near it (Yonkers and Westchester I’m looking at you) get out of there. The savings in taxes alone will make up for the loss you take on selling a house. And the piece of mind of living far away from where there is soon to be chaos is priceless.