Friday, October 3, 2008

How Much Do You Owe for Government Employee Benefits?

Categories: Government employees, Pennsylvania

One of the more obscure but significant costs of government are pension and health care benefits promised to employees. The Allegheny Institute comments on a rule, implementing by the leading accounting standards board, that now requires governments to report their obligations for health-care benefits for their retirees.

By one estimate, the obligation incurred by all state and local governments in the country amounts to $1.5 trillion.

The institute's policy brief describes the financial situation of the City of Pittsburgh as well as Allegheny County. Senior policy analyst Eric Montarti says that Pittsburgh is on a "path toward financial calamity" absent significant changes.