Unfunded Obligations of State and Local Governments

Stock vs. flow? Relevant comparison is between annualized obligation and GDP (flow and flow). Still scary, but less scary.

Wow, it takes real talent for the governing class of Alaska to create massive unfunded liabilities - this is a state which has so much oil money it sends residents a check every year and gets way more back from Washington than it sends in taxes.

Get ready for lots of defaults. Also get ready for all kinds of Congressional proposals to bail these plans out. It will give a whole new meaning to the term "moral hazard."

Hawaii, New Jersey, and Ohio are among states with the higest tax burdens (local and state), according to www.taxfoundation.org data. This certainly contradicts those who would have us believe that the solution to the Federal Goverment's unfunded liabilities is higher taxes. Higher taxes might help or hurt, but an overall climate of living within your means - whatever those means - is really what is needed.

Alaska is some sort of outlier, with the lowest tax burden. They might have room to manuever on taxes, plus they could just divert the oil money to these liabilities.

You can follow the rapidly accelerating public pension crisis daily on PensionTsunami.com.