Detroit not alone under mountain of long-term debt
From Baltimore to Los Angeles, and many points in between, municipalities are increasingly confronted with how to pay for these massive promises. The Pew Center for the States, in Washington, estimated statesâ€™ public pension plans across the U.S. were underfunded by a whopping $1.4 trillion in 2010.
For years, watchdog groups and public-sector analysts have warned of the threat posed by unfunded liabilities. Much like the legacy pension costs that weighed on Detroitâ€™s automakers before the Chrysler and General Motors restructurings of 2009, the worry is that revenues canâ€™t keep up with growing debt and that rosy predictions for market returns downplay the actual financial risk....
Wheton, I guess we better start taxing the wealthy more! They've been getting a free ride for 30 or 40 years--or more! "The wealthiest Americans are paying some of the lowest tax rates since World War II." q.v., Is Our Tax System Fair? Survey Says: No.
But, this article just makes me laugh! I just have to mention it, since it such a great source of pride! Nebraska has more municipal going bankrupt than anywhere else in the nation! This just wants me to bust my buttons! Really though this isn't towns as such but or such, but are sanitary sewage district bonds? I have some also great bridges in NYC, I can sell you also.