Arnold Kling  

Maryland's State Pension Blues

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The Examiner reports,

State teacher pension payments will grow 10 percent annually and its benefits contributions will grow 8 percent annually, while General Fund revenues -- responsible for all teacher pensions and 60 percent of benefits -- will increase only 5 percent each year through 2015, according to Warren Deschenaux, the state's chief budget analyst.

What it means to be a blue state these days is that the public sector unions are politically dominant. They do not care about the future of their states. They only care about member benefits.

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COMMENTS (3 to date)
Jack writes:

Dr. Kling,

If nothing else, the pension implications of the financial crisis should be (or ought to be) a killing blow for pay-go plans. It is fundamentally foolish to promise high risk-free returns paid for using risky returns. If pay-go plans are to remain, they need a reality check.

But I suppose this is pretty obvious to the readers of this blog.

Foobarista writes:

The Democratic Party: raising tomorrow's taxes to pay for yesterday's government.

ERIC writes:

What is needed to change the current state of affairs?

Who has got the power and will to make a change?

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