Once Again Hands in Our Pockets to Pay Someone Else’s Debt
Same old story in government, someone else makes promises they appear to not be able to keep and we have to pay for their promises.
A task force formed by Governor Snyder released a report the other day concerning local government’s retiree cost. The report states that many local governments appear to have a great potential to not be able to pay for these promises they made.
In the report the task force is quoted stating:
something must be done immediately
I wonder what that something is going to be.
Governor Snyder created the task force to review and come up with solutions to what he believes is a “growing financial problem” across Michigan. According to the report Michigan local government and counties have a combined:
- $10 billion in unfunded health retiree health care liabilities
- $7.4 billion in unfunded pension commitments
- and $4 billion in bonded debt
There are calls for transparency, local municipalities meeting their minimum requirements to pre-fund retiree health care costs for new hires, creating a pension and retiree health care “stress test” to alert local governments of upcoming crises and alike. You know what will definitely be part of the final solution, the taxpayers of Michigan picking up the tab of local municipalities.
In fact the call for Michigan citizens who had nothing to do with other local government promises to pay for those promises has started. State Representative Andy Schor, a Lansing Democrat who served on the task force and is running for mayor was quoted in the Lansing State Journal stating:
Providing resources from the state is an area that we've kind of been neglecting. It's definitely a good thing for the state to come in and provide resources for a local that may not have those resources available.
According to the report it is not all bad news, the report states that the average public pension system in Michigan is 78% funded and is “close to what many experts would say is adequate”.
I for one do not believe it is incumbent upon Michigan citizens of one local municipality paying for another local municipalities promises, do you?
You made your bed now lie in it!