By Randal Edgar
Journal State House Bureau

PROVIDENCE, R.I. -- While several speakers were telling the House Finance Committee last week that cities and towns are spending too much on employee pensions, another, representing public school teachers, argued that the state and its municipalities should be concerned about spending too little.

According to Patrick Crowley, an assistant director at the National Education Association of Rhode Island, putting money into public-employee pension plans is a good investment. So good that every $1 contributed by taxpayers reaps a return of $4.56 in local economic activity.

Crowley was citing figures from the National Institute on Retirement Security, which concluded in a 2009 "Pensionomics" report that the yield is good because investment earnings and employee contributions provide "the lion's share" of employee pensions. The people receiving those pensions then go out and spend money, helping the local economy, the report says.

Crowley's statement led to a spirited exchange with Rep. Laurence W. Ehrhardt, R-North Kingstown, who questioned the Crowley's logic.

"That dollar comes from someone," Ehrhardt said. "Doesn't it then have the same effect on the other end?"

"No, it doesn't" Crowley responded.

Ehrhardt listened to the explanation but gave no ground.

"I have a graduate degree in economics," he said when Crowley had finished. "I completely disagree with you."