How the unfunded pension liabilities of government unions are destroying Illinois

I've written several articles on the pension crisis in America over the last few years, including the issue of states hiding their unfunded pension liabilities that threaten to destroy states' fiscal position. Nowhere has this been truer than in my home state of Illinois. The situation can no longer be kept from the taxpayer, as the Wall Street Journal explains: llinois is an object lesson in why firms are starting to pay more attention to the long-term fiscal prospects of communities. Early last year, the state imposed $7 billion in new taxes on residents and business, pledging to use the money to eliminate its deficit and pay down a backlog of unpaid bills (to Medicaid providers, state vendors and delayed tax refunds to businesses). But more than a year later, the state is in worse fiscal shape, with its total deficit expected to increase to $5 billion from $4.6 billion, according to an estimate by the Civic Federation of Chicago. Rising pension costs will eat up much of...(Read Full Post)