An Excellent Overview of “…Funding of State and Local Pensions: 2009-2013”: Challenges for Coral Gables and Other Local Governments
September 8, 2010 Leave a comment
This conclusions are highly relevant to Coral Gables budget policies, namely, we are facing a good three or four years of adjustment. I would say that taxpayers cannot make up the difference.
The…key findings are:
State and local [pension] plans, which were headed toward full funding, were knocked off track by the financial crisis.
Their funding ratio dropped to an estimated 78 percent in 2009 from 84 percent in 2008.
Funding will likely continue to decline to 72 percent by 2013.
Reversing this decline will be difficult, as plans face constraints in increasing revenues from either employee contributions or taxes.
See this and other interesting reports on local and state funding issues at the Center for State and Local Government Excellence.