From PE.com
''A new report warns that the financial crises facing states extend well beyond the temporary ills of an economic slump. California legislators — and those in other states — need to abandon short-term expediency and create sustainable long-term state financial plans.
''The findings will pose no surprise to anyone familiar with California’s fiscal woes. But the state is not alone. The report examined six states, including California, New York and Texas, and found they share many fiscal threats. All states, for example, face a decline in gas tax as cars become more fuel-efficient, yet still need to find some way to pay for roads, highways and bridges. State and local public pension plans are underfunded by nearly $1 trillion nationwide, and perhaps as much as $3 trillion, the group reports. State and local governments face another gap of as much as $1 trillion in paying for retiree health benefits. Medicaid spending is generally growing faster than states’ revenue, crowding out funding for other state services. State legislatures have compounded those ills by resorting to borrowing, selling off assets and other one-time stopgaps instead of addressing long-term financial issues.''
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