Source: Dan Froomkin / The Huffington Post
State governments have already been slammed by the recession, but there’s an even more massive financial threat looming in the form of immense projected shortfalls in public-employee pension funds — in some cases so big there is literally no way the states can make them up anytime soon, even if they tried.
Chronic underinvestment (particularly in the bubble years), poor management of assets before and during the financial crisis, and, in some cases, unfunded benefit increases have put many pension funds wildly out of balance.
But state taxpayers are contractually obligated to make good on the retiree benefits — even as those promises threaten to crash headfirst into obligations to pay for schools, public safety, health care and the like.
“Something has got to give,” says Joe Nation, the director of a Stanford University graduate program that is reporting today that the cumulative shortfall from California’s three giant pension funds alone is somewhere around $500 billion.
To read this article in its entirety visit The Huffington Post.
Sphere: Related Content
Source: Dave Carpenter / The Huffington Post
A survey released Monday by financial data publisher Bankrate.com found that only 24 ...
Whether it be the jobs crisis, the foreclosure epidemic or the our nation's vast prison population, there is a ...
Source: AP / The Huffington Post
Washington— Striving to gain the upper hand on a crucial political issue, President Barack ...
Source: Ryan Grim and Shahien Nasiripour / The Huffington Post
A move to break up major Wall Street banks failed Thursday night ...
Source: Marcy Gordon / AP / The Huffington Post
WASHINGTON — The U.S. attorney's office in Manhattan is conducting a criminal ...
Source: Sam Stein / The Huffington Post
In late August, when town hall protests were putting the prospects of health ...
Source: Ryan Grim / The Huffington Post
Mitch McConnell has rounded up the necessary votes to block Democrats from bringing Wall Street ...
Source: The Huffington Post
The election-year jobs agenda promised by President Barack Obama and Democrats has stalled seven months before ...
Source: Shahien Nasiripour / The Huffington Post
While former Federal Reserve Chairman Alan Greenspan defiantly defended his record this week before ...
Source: Arthur Delaney / The Huffington Post
Sen. Tom Coburn, the Oklahoma Republican who blocked Democrats' efforts to reauthorize existing unemployment ...
24 Percent Of American Consumers Have No Emergency
7 Shocking Facts About Minority Unemployment
Obama To Go After GOP On Economy, Tax
Senate Votes For Wall Street; Megabanks To Remain
Goldman Sachs Case Sent To Justice Department Prosecutors
Obama Wall Street Speech Set, President Will ‘Go
Unified GOP To Block Senate From Debating Wall
Obama’s Jobs Agenda Stalled In Congress
(VIDEO) Greenspan FINALLY Acknowledges Existence Of Fraud, Says
Will Congress Extend Unemployment Benefits Beyond 99 Weeks?