Tuesday, October 19, 2010

Are State Pensions Sustainable?

"There seems to be a high likelihood that future generations will have to bear the substantial burden of making up pension benefits for previous generations of state employees. While citizens of states that are particularly hard-hit by the pension crisis may be able to escape to other states, an acceleration of this demographic phenomenon would leave a dwindling taxpayer base behind in the states facing the largest liabilities. This would increase the likelihood of a federal taxpayer bailout in which taxpayers in all states would bear the burden of the states in default. The problem of state and local pension liabilities is therefore a problem for all U.S. taxpayers, not just those in the states with the largest deficits." -- Joshua Rauh

More here. Scroll all the way to the bottom to see your state's ranking. The lower your state's ranking, the better.

It's not pretty if you live in Illinois, Connecticut, Indiana, or New Jersey.

It's much better if you live in North Carolina, New York, or Nevada.

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