Reason Foundation analysis highlights high state and local debt burdens
What happened
A Reason Foundation analysis found that combined state and local long-term debt totals $4.92 trillion. Roughly half of this debt consists of unfunded retirement benefits for government workers. Unfunded pension liabilities account for $1.55 trillion, while other unfunded retirement benefits total $927 billion.
From townhall.com
Why it matters
The analysis indicates that a significant portion of state and local debt is tied up in unfunded obligations to government workers. This level of debt could increase fiscal scrutiny on state governments and raise funding risk for large infrastructure projects.
From townhall.com
Who's involved
- New YorkState subject of the debt analysis
- CaliforniaState subject of the debt analysis
- Kathy HochulGovernor of New York
- State of CaliforniaGovernment of the U.S. state of California
- Thomas DiNapoliAmerican politician and financial oversight official
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- California High-Speed Rail AuthoritySpeculative
California High-Speed Rail Authority could face increased funding risk for large infrastructure projects due to state debt scrutiny.
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The entities involved
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New York
state of the United States of America
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California
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