Chart of Note: Unfunded State Pensions

Unfunded pension liabilities are a serious issue for state and local governments facing significant short and long-term financial challenges. Even North Carolina is not immune from the crisis, though the depth of despair is far greater in other states.

This summary by George Mason University researcher Veronique de Rugy, along with the chart, give us an idea of how significant employee pension liabilities now are. The potential, due to differences in accounting standards between the public and private sectors, that unfunded liabilities could be almost 8 times greater than currently reported forces local government professionals to consider the potential ramifications if States have to take severe austerity measures in order to reallocate resources to meeting their obligations.

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