Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and senior managing director of the Financial Services Group at Gilford Securities.
The unfunded pension liability for U.S. state government employees is forcing many states to increase property taxes to cover added costs, Jerome Corsi’s Red Alert reports.
New Jersey has disclosed that the unfunded pension liability for state government employees grew from $45.8 billion to $53.9 billion in 2009, an increase of 18 percent.
New Jersey public employee pension funds currently cover some 800,000 workers in seven different pension funds impacting a wide range of government employees, including teachers, police officers, firefighters, judges and a myriad of bureaucrats.
New Jersey residents have the largest unfunded pension liabilities in the nation.
The crisis in state pensions is cascading into a property-tax crisis.
Cities across the nation are raising property taxes, largely to cover rising pension and health-care costs for their employees and retirees.
“With state revenue continuing to lag behind projections, states are squeezed to meet pension obligations,” Corsi wrote. “The problem is that higher property taxes can end up being self-defeating, forcing homeowners with expensive properties to move to states with lower property taxes, with the result that the state ends up collecting even less tax revenue despite the higher tax rates.”
In October, the Center on Budget and Policy Priorities reported that to balance their 2011 budgets, states had to address fiscal year 2011 gaps totaling an estimated $125 billion, or 19 percent of budgets in 46 states.
State tax revenues were 8.4 percent lower in fiscal year 2009 than in 2008, and an additional 3.1 percent lower in 2010, reflecting the worst recession since the 1930s.
“States will continue to struggle to find the revenue needed to support critical public services for a number of years, threatening hundreds of thousands of jobs,” the center reported.
The center sees no diminishment in budget problems in 2012.
For more information on the unfunded pension liability crisis, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.“
Red Alert’s author, who received a doctorate from Harvard in political science in 1972, is the author of the No. 1 New York Times best-sellers “The Obama Nation” and (with co-author John E. O’Neill) “Unfit for Command.” He is also the author of several other books, including “America for Sale,” “The Late Great U.S.A.” and “Why Israel Can’t Wait.” In addition to serving as a senior staff reporter for WorldNetDaily, Corsi is a senior managing director in the financial-services group at Gilford Securities.
Disclosure: Gilford Securities, founded in 1979, is a full-service boutique investment firm headquartered in New York City providing an array of financial services to institutional and retail clients, from investment banking and equity research to retirement planning and wealth-management services. The views, opinions, positions or strategies expressed by the author are his alone and do not necessarily reflect Gilford Securities Incorporated’s views, opinions, positions or strategies. Gilford Securities Incorporated makes no representations as to accuracy, completeness, currentness, suitability or validity of any information expressed herein and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its display or use.