Why We Haven't Heard the Last of the States' Budget Crises

Matt Welch | July 16, 2009

An ill wind blows (sorry!) in today's Daily Breeze:

State and local governments across the nation will have to come up with a massive $558 billion over the next several decades to meet health and dental benefits for their employees and retirees, a report released Wednesday found.

That figure represents the total unfunded liabilities - money scheduled to be paid out that does not now have an identifiable revenue stream - held by all states, including $48 billion for California.

The Center for State and Local Government Excellence report also found many state and local governments have done little to deal with the escalating retiree health care costs.

"Though there may be urgency, the states have yet to develop long-term strategies for dealing with escalating retiree health care costs," the authors wrote. [...]

Of 140 government agencies surveyed in California, the median average of unfunded liability was $26 million, according to the report. Of the agencies, 5 percent said they are likely or very likely to raise taxes and 15 percent said they are likely or very likely to cut city and county programs and use the savings to pay for retiree health care expenses.

The report in question can be found here. Link via Rough & Tumble.

Comments

Tomcat1066|7.16.09 @ 11:21AM|#

And government is going to save our butts on healthcare?

Why to I lack confidence? Hmmmmmmmmmm.

kilroy|7.16.09 @ 11:24AM|#

Time for that California earthquake. I bet Bill Gates is preparing a patent for that right now....

KingShamus|7.16.09 @ 11:37AM|#

When thinking about state government idiocy, I think paraphrasing another Steve Martin vehicle is a better fit: "The Man With No Brains".

Either that or "The Stink Panther".

Kevin|7.16.09 @ 11:39AM|#

"Several decades?" What politician gives a rat's rear end about something that's going to happen so far into the future? They'll be sipping martinis on their yachts by then.

JimBob|7.16.09 @ 11:48AM|#

...Your temperament's wrong for the priesthood,
And teaching would suit you still less!
Son, be a dentist--
You'll be a SUCCESS!

(Sorry, but the photo took me back to a better time-- when Steve Martin was funny, Rick Moranis had a career, and the "War on Terror" sounded like a tagline from a B-movie...)

Tomcat1066|7.16.09 @ 11:50AM|#

That "to" should have been "do"

Oh yeah. Spelling FAIL!

T|7.16.09 @ 11:59AM|#

Well, when we pass our national health care system, the states will be relieved of their obligation to provide it themselves and can push the old geezers off onto the new federal system. It's a win for everybody, except taxpayers. And who cares about them?

|7.16.09 @ 12:54PM|#

In other words, these entitlements will end up costing far more than the politicians who sold them said they would.

And yet the fans of government-run healthcare insist that it will be different this time. Why should it be?

|7.16.09 @ 1:21PM|#

And yet the fans of government-run healthcare insist that it will be different this time. Why should it be?

Because the Right People are In Charge, that's why.

Russ 2000|7.16.09 @ 2:14PM|#

Of 140 government agencies surveyed in California...

That phrase right there scared the hell out of me.

Kalle (kafir forever)|7.16.09 @ 3:14PM|#

How many government agencies are there, in CA?

|7.17.09 @ 6:02AM|#

nice post...
___________________
Britney
The best place for the best ENTERTAINMENT

|7.18.09 @ 8:43PM|#

> How many government agencies are there, in CA?

Heh. Too many. And they all are horribly inefficient, which I am sure must seem like a really shocking revelation.