Tick, tick, tick… Friday, Jan 27 2012
“Watchcat” (a complimentary term) Jeremy Alford has written an excellent report on the fiscal “ticking time bomb” known as the Unfunded Accrued Liability (”UAL”) in our state retirement systems. See Report here.
While others have mentioned the UAL problem Jeremy explains how this massive debt will directly affect you and me. It will mean reduced government services while we pay the same or higher taxes.
Our state constitution mandates that payment of retirement benefits are the first priority on all available state revenues. In other words, all government services would have to cease if it became necessary to use all of our tax dollars to pay retirement benefits.
The UAL has grown from $5.8 BILLION, 25 years ago, to $18.5 BILLION today and this number is estimated to continue to grow exponentially.
The growth of this debt is proof that our elected officials have failed to address or to address adequately the problem.
It’s time to wake up and smell the coffee. Ask your leges what their specific plans are to address this problem.
C.B.
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