Thursday, January 25, 2007

Massachusetts is broke too – From Robert Pozen in the Boston Globe “Paying for public retiree healthcare”: “While the burdens of retiree healthcare benefits on General Motors are well known, Massachusetts residents will be surprised by the large unfunded obligations of the public sector to pay similar benefits.”

2 comments:

JorgXMcKie said...

Yeah. When I teach this part (unfunded liabilities in municipal government units) I'm usually met with disbelief. Many of my MPA students are already local government employees, and they think their health care benefits and retirement promises are relatively cheap and guaranteed.

The cases in Michigan of Hamtramck and a couple of others (total bust and loss of all retirement benefits) may have awakened a few.

Brian said...

Relax Erick. The state will just tax you and everyone else and solve the problem. It'll be a "temporary" tax, so don't you worry.

Seriously, a move to New Hampshire is not a bad idea pal.