Williams: Are You a Victim of State Pensions?

Armstrong Williams

Townhall - When I go over my personal budget, I have to make sacrifices. Perhaps I don’t eat out as often, or I turn my thermostat down, or even limit my purchasing of non-necessity items. We all do this because we know we can’t live in the red for long with out collection agencies and banks taking our possessions away. Yet, for federal and state governments, over spending and not balancing their checkbooks is a way of life. We all know about the federal deficit, but one thing that has gone unnoticed that could sink the federal budget more than the banking meltdown of late ’08 is the state budget deficits stemming from overreaching state employee pension and benefits programs. Nationwide, it’s estimated that state and local governments are short on paying future claims to the tune of $1-3 trillion! If current trends continue (which, of course they won’t) and if we assume an 8% return on investment rate for the pension funds (which we can’t) states will begin running out of money by 2018, with Illinois being the first, and 20 by 2025. Of course, government being what it is, we can expect states to spend too much in boom cycles, and well, spend too much in bust cycles too, so 2018 might actually be 2013 unless politicians radically change there ways. Read full column here:

Williams: Are You a Victim of State Pensions?