Underfunded Pensions Loom Large

http://neatoday.org/2011/01/14/who%E2%80%99s-really-to-blame-for-underfunded-pensions/

The NEA says politicians, many of whom want to restructure pensions, are responsible for underfunding them. "The politicians did it. Let the taxpayers pay..."

I heard a guy say today that Ohio's public pensions were "pretty solvent". Oh, yeah? That's not what they say in Columbus:

http://www.examiner.com/government-in-columbus/ohio-leads-list-of-most-underfunded-state-pension-plans-researchers-find

Not a real stirring issue, is it? The next big question will be Do we Bail the States Out or Do we Not?

Of course the feds will bail out the states OC, they'll have to and in doing so, will take more control. And what will likely be the tipping point will be when states are required to take on extra funding for stimulus programs like unemployment, medicare and medicate when the fed halts funding for those programs.

If the Feds bail out the states and take greater control, what will happen to states' rights? Will the left remind us that the term is "code" for racism?

And, at the risk of wearing you out with two posts, why do you say, "...they'll have to (bail the profligate states out)?"

In order to get stimulus money for programs like unemployment and welfare, states had to agree to change laws meaning they will have to spend additional money once stimulus funds run out. States changed laws meaning they will have to give unemployment for part time and workers and will income limits have increased on medicate and Chips programs so states will have to pick up the tab for those bills as well. I read somewhere that Ohio, which already spends 25% of it's budget on federally mandated medical cost will see that number top 30% of their budget. Unemployment is expected to cost states 3 to 5% more then they currently spend and with dwindling revenues, the feds either bail them out or let them default on bond payments among other things. Of course, for this bailouts, the federal government will demand more control. States rights, yeah, it's a thing of the past.

This has been going on for decades. You want money for highways? Lower speed limits. You want money for teachers? Administer this test. The states capitulate again and again and again.

Yes, it has been going on for decades. The problem is, the amount of federally mandated programs state legislatures must now fund is to the point that they cannot do it without federal aid. If you think it was bad before, you ain't seen nothing yet.

I think this will raise a stink and a backlash. I don't want to pay for Illinois' bad choices. I wouldn't mind chipping in the Sheik's portion of that... I don't want to pay for NJEA's pensions and I don't expect them to pay for mine. If Joe Manchin or Rockefeller vote for anything resembling a state-by-state bailout to pay for other states' failures of will I'll raise hell. I would stand up and applaud subtle changes to federal law to allow states to declare bankruptcy.