States short $1 trillion to fund retiree benefits
http://money.cnn.com/2010/02/18/news/economy/public_pension_gap/index.htm
This article talks about the fact that states and localities now must deal with a $1 trillion deficit (which averages $8,800 for every household in US.) in public employees' retirement benefits' funds.
This deficit is partly caused by states' failure to make annual contributions while enhancing benefits. To make up for this gap, states usually ask the residents to make it up by imposing property tax or income tax. So the taxpayers may face higher taxes with less benefits.
Althought, according to the article, "the bill isn't due at once and no state is in danger of default", it's still better to address the default and work on it as soon as possible.
That is an incredible number, the government should have been smarter by making annual contributions but now the american people will have to pay higher taxes on their property with less benefits. I can guarantee most homeowners will not be happy with this one, especially in these times.
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