Shortfall is three times State’s general fund revenues
Vermont, like many states, is sitting on a fiscal powder keg of unfunded pension and retiree health care benefits for state workers and teachers, according to a February 11 Commentary in VTDigger by David Coates. To give perspective, the shortfall of $4.5 billion is an amount that is “three times our general fund revenues and seven times our bonded indebtedness.” And, the liability is growing.
Mr. Coates asks the obvious question. “What programs will be cut or taxes raised” to cover this liability? Good question for our State Reps at Town Meeting.
At the end of the day, does anyone think our state can possibly meet these obligations? I doubt even those legislators supported by the labor unions can believe this, given the preponderance and magnitude of this factual information. Without strong leadership to change our structural problems inherent in these pension and other post-employment benefits programs, our state is headed for a financial tsunami.