We've been reporting on this coming crisis for years here at AT and now it looks like it's about to hit; states are short $1.26 trillion in unfunded liabilities and worse, the gap is growing as is the number of states affected.Reuters: States are short $1.26 trillion in paying for public employee pensions and other retirement benefits, a gap that grew 26 percent in one year and will take many more years to wipe out, according to a report released on Tuesday.A total of 31 states had pensions that were underfunded in fiscal 2009, the latest year for which data is available, up from 22 states a year earlier, the Pew Center on the States reported.The financial crisis in 2008 crushed many pension funds' investments, just as historic budget woes forced governments to cut contributions to those funds.The combination "made a serious problem even worse," said Susan Urahn, the Pew Center's managing director.In fiscal 2009, which for most states began in July 2008, states were short...(Read Full Post)