By their own assessment, state and local governments acknowledge that their funds for retiree benefits are increasingly falling behind, with the number that are severely underfunded soaring to 40 percent in 2006, a five-fold increase from 2000, according to the U.S. Government Accountability Office.
From as early as 2006, as reported by THI :
- The City of San Diego was embroiled in its worst financial crisis ever, with an estimated pension deficit of $2 billion threatening to consume as much as one-third of the city's general fund. The city's failure to properly disclose pension liabilities prompted a U.S. Securities and Exchange Commission investigation and led to the suspension of the city's credit rating. So far eight former pension officials have been charged with criminal corruption by the U.S. Attorney's Office and state District Attorney's Office.
- In Illinois, taxpayers faced a pension deficit estimated at $38 billion--the worst in the nation.
- The state of West Virginia faced a $5.5 billion pension deficit and an additional $3.3 billion in unfunded workers' compensation liabilities--a total deficit nearly three times the state's annual $3.1 billion general fund budget.
- In California, the teachers' retirement system faces a shortfall of more than $24 billion, and the state's combined contributions to the public employees' and teachers' plans now exceed $3 billion per year.
Are we all going to bend over and take it in the ass as usual? I have zero love for bureaucrats, but even less for stealing.