State, Local Governments Have Funded Only 35 Cents of Every Dollar Committed to Pensions
14th October 2016
That’s how much a recent report from the American Legislative Exchange Council, or ALEC, estimates state and local governments across the U.S. have promised to their employees, but can’t afford to pay.
Normally, if an employer promises its worker more than it can pay, its workers lose out, but that’s unlikely to be the case here.
Since most state and local pension promises represent legal obligations, it will be state and local taxpayers who bear the burden of their governments’ unfunded promises.