January 5, 2010
UH OH: Underfunded Public Pensions as “Stranded” Costs? Two Trillion Dollars? “One question about these obligations is whether taxpayers will stick around to pay them, or instead will vote with their feet. . . . Many of these pension obligations have been incurred by municipalities and others by states, and in some cases the obligations are intertwined. But what happens if voters-taxpayers move out? The assumption has long been that taxpayers are stuck, on account of jobs and other circumstance. But query whether that is necessarily true as the baby boom generation retires.”
UPDATE: Reader Eileen Cameron writes:
My aunt lives in Nevada. Her neighborhood is essentially a community made up of retired police and firemen from California. Why did they move to Nevada? The high CA taxes!!! They reap the benefits but won’t stick around to pay the costs!
Well, who’d want to? . . . .