A Fiscal Wake-Up Call for the States

Publication: Time

Author: David Von Drehle

04/26/2011 - The financial picture is still grim in state capitals across the country. In California, for example, the once-again Gov. Jerry Brown has bailed $11 billion of red ink out of the budget, leaving him with $15 billion to go. A new poll of Golden State voters suggests that the drumbeat of fiscal calamity is starting to move citizens to favor drastic action: tax hikes, spending cuts and public employee pension reforms.

Now comes a new report from the Pew Center on the States warning that things are even worse than they seem. Following up on an influential study of public pension funds last year, the Pew Center reports that pensions and health care for retired state employees are now underfunded by $1.26 trillion.

Read the article A Fiscal Wake-Up Call for the States in its entirety on the Time Web site.

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