Staring down the coronavirus's effect on their budgets, states like New Jersey and Illinois are calling on federal leaders to backstop public pensions as part of future coronavirus relief.
Democratic leaders in those states are pushing the federal government for billions in funding to shore up underfunded public pensions.
Democrats in Congress have made bailouts for state and local governments a major priority for the next round of coronavirus stimulus, even allowing a major small business loan program to run dry as Republicans refused to package a renewal with more cash for states.
Some states now seeking bailouts are in part covering for more than a decade of economic mismanagement, having chased increasingly risky investments to fund generous benefits at low up-front costs.
Bailouts would allow states to dodge hard questions about the viability of excessively generous public pensions.
Advocates of a bailout argue that states are the front line for the fight against the coronavirus.
States responded differently-the eight best-funded states had rebounded 95 percent by 2017, while the 20 worst-funded states saw funding drop from 76 percent in 2007 to 56 percent in 2017.
https://freebeacon.com/policy/states-made-risky-bets-with-pensions-before-coronavirus-now-they-want-a-bailout/
Democratic leaders in those states are pushing the federal government for billions in funding to shore up underfunded public pensions.
Democrats in Congress have made bailouts for state and local governments a major priority for the next round of coronavirus stimulus, even allowing a major small business loan program to run dry as Republicans refused to package a renewal with more cash for states.
Some states now seeking bailouts are in part covering for more than a decade of economic mismanagement, having chased increasingly risky investments to fund generous benefits at low up-front costs.
Bailouts would allow states to dodge hard questions about the viability of excessively generous public pensions.
Advocates of a bailout argue that states are the front line for the fight against the coronavirus.
States responded differently-the eight best-funded states had rebounded 95 percent by 2017, while the 20 worst-funded states saw funding drop from 76 percent in 2007 to 56 percent in 2017.
https://freebeacon.com/policy/states-made-risky-bets-with-pensions-before-coronavirus-now-they-want-a-bailout/
No comments:
Post a Comment