Is Georgia looking at another crisis?
Let's see...we have issues concerning Grady Hospital, a $7.7 billion transportation funding shortfall, an extreme drought and a potential water shortage. As if all that weren't enough, let's throw in a $16 billion shortfall in the state's retirement system:
The state's employee retirement system is facing a potential $16 billion shortfall in coming years as baby boomers continue to retire and may have to scale back the program for future state employees, the program's director told lawmakers Tuesday.It pales in comparison to what lies ahead as far as Social Security and Medicare are concerned. The National Center for Policy Analysis puts the unfunded liability of those two programs at $49.6 trillion.Officials say they may have to change the program so it can continue paying full benefits in the future for the 70,000 state employees in the system and the 32,000 retirees already receiving benefits. The retirement system board approved a reduced cost-of-living increase last week.
The talk of any cutbacks has retirees up in arms. Some fear the benefit will be eliminated or slashed for future employees. They also worry their annual cost-of-living increases will be cut further.
"This is going to be a fight," said Bill Tomlinson, a retired former state budget director who has worked to organize retirees.
The problem is similar to what's ahead for Social Security at the federal level. The ratio of workers paying into the system to retirees receiving benefits will be shrinking, officials said.
"Our liabilities are growing faster than our assets," said Michael Nehf, executive director of the state's Employees Retirement System, in a presentation to a House-Senate panel studying the issue Tuesday.
The tax burden has increased for Georgia citizens, property taxes continue to rise and there is no end in sight. You know the first answer to the question will be to raise taxes, but let's hope lawmakers look for other answers before they react.
Comments
They need to get with it and eliminate the defined benefit plans...
Posted by: Harry Johnson | October 24, 2007 12:13 AM