The following is from an article in the August 11, 2012 Wall Street Journal
Hard Times Spread for Cities
A study by the Center for Retirement Research at Boston College found that annual pension payments for state and local plans more than doubled to 15.7% of payrolls in 2011 from 6.4% a decade earlier.
The Nelson A. Rockefeller Institute of Government said local governments made roughly $50 billion in pension contributions in 2010, but their unfunded pension liabilities still total $3 trillion and unfunded health benefit liabilities are more than $1 trillion.
Local government cuts are one factor slowing the broader economic recovery, offsetting stronger private-sector growth. State and local government spending and investment fell at a rate of 2.1% in the second quarter, according to the Commerce Department, the 11th consecutive quarterly drop. Local governments also have cut 66,000 jobs in the past year, mostly teachers and other school employees.
Now keep this in mind as you pay your next property tax bill, a good private pension will cost about 8% of payroll…enough said.
Related articles
- Cities In California Are Declaring Bankruptcy To Avoid Governor Brown’s Ridiculous Tax Raises (investmentwatchblog.com)
- Munis Face $2 Trillion In Unfunded Pension Costs (investmentwatchblog.com)
- Next couple of months don’t look promising (investmentwatchblog.com)
- Public pension debt to triple to $2.2 trillion? (taxdollars.ocregister.com)
- Reitree liability looms for Lincoln (bizjournals.com)
- U.S. Public-Pension Shortfall $4.6 Trillion, Group Says (bloomberg.com)
- Baby boomer pension troubles (politico.com)
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