The state is facing a pension bomb, promises made to state workers that a new report by the Empire Center says is simply unsustainable. Our Steve Ference reports on the multi-billion dollar problem facing state workers and taxpayers alike, and what leaders from all sides of the debate say about the crushing burden.

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ALBANY, N.Y. -- "Our pension costs are about to explode," said Empire Center for NYS Policy Director E.J. McMahon.

It may be a complicated topic, but a new Empire Center for New York State Policy report says state pensions are threatening New York State's financial health.

"Statewide, not including New York City, the taxpayers' share of pension costs is basically about to more than double," said McMahon.

Basically, state workers' pensions are backed up by taxpayers' ability to pay, promises that may be impossible to keep.

McMahon said, "It's absolutely unsustainable. It's plainly been unsustainable for some time. We're getting the bill now because this is the way the system works. It hits you with a higher bill right when you can least afford it."

For example, the report says taxpayer-backed contributions to the state teachers retirement system could more than quadruple from $900 million this coming year - to $4.5 billion in 2015.

Timothy Kremer, New York State School Board Association Executive Director, said, "I hate to see it turned into 'the greedy teachers.' These are employees working hard. They deserve to have a pension system. Unfortunately we're getting to a point where it's not affordable."

The total combined shortfall for the New York State and Local Retirement System and the Teachers Retirement System, estimated by the Empire Center at $120 billion - about the size of the entire New York State budget.

McMahon said, "What people don't understand is, just because the pension system is 'fully funded' doesn't mean it actually has enough money. We have alternative calculations in our report showing the state pension systems right now are actually $120 billion short of what they need. That's why we're all going to be paying increased pension contributions over the next few years."

Panelists - including local and state legislators - seemed to agree across party lines that they must address the issue quickly.

Bronx Assemblyman Michael Benjamin said, "Pension costs are spiraling out of control, impinging on our ability to maintain and expand public services."

Syracuse Mayor Stephanie Miner, said, "Our pension budget is going to be $23.9 million - $24 million. A $10 million increase."

But CSEA spokesman Stephen Madarasz says nobody - at least no CSEA worker - is getting rich off the pension benefits, and says it's simply unfair to compare the pension benefits in the private sector with those found in the public sector.

Madarasz said, "Taxpayers are not getting killed by CSEA members on $14,000 a year after devoting 30 years of service to the state of New York or to a locality and we're not going to apologize for trying to maintain a decent benefit."

Panelists, suggesting ideas like switching new workers to something like a portable 401(k)...One of the biggest financial debates facing the state that may have only just begun.

Meanwhile, Dennis Tompkins, Spokesperson for Comptroller Tom DiNapoli, released the following statement:

“The New York state retirement fund has ranked one of the best if not the best pension funds in the county. It has been consistently fully funded or nearly fully funded for decades, and Comptroller DiNapoli has all the confidence that we have the assets to meet our obligations."