State finances are teetering with $4 trillion in unfunded liabilities to cover pensions and health care for state workers, along with revenue shortfalls, antiquated financial practices and skyrocketing Medicaid costs, according to a report released Tuesday.The State Budget Crisis Task Force -- organized by former Federal Reserve Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch (D) -- is the first complete study of the state finances conducted without the involvement of state government groups. Volcker and Ravitch concluded that the dire financial portrait may lead to major cuts for social services, causing a cascade of further problems for state and local governments nationwide.Read it at The Huffington Post
Paul Volcker, Richard Ravitch Say State Budget Crisis Threatens 'Social Order'
by John Celock
Although it's the right disgnosis, it's the wrong prescription.