Dan Touhy reports in the Union Leader that the New Hampshire Municipal Association is leading a legal challenge to the state's decision to cut back on its share of local retirement benefits:
Local government leaders are moving forward with a legal challenge to the state reducing its share of the retirement contribution rate for municipal employees such as teachers, police and firefighters.
The $11.5 billion state budget, which took effect July 1, requires local government to pick up 5 percent more of the share in 2010 and another 5 percent more in 2011, for a total cost of $27 million.
Municipal, school and county associations argue that it is an unfunded mandate in violation of the state Constitution. (more)
To prevail, the towns would have to show that the benefits they provide to local workers are mandated by the state and should be funded by the state, which would be difficult since towns are already paying 65% of those costs. The budget shifts the local contribution to 75% over the next two years.
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