There is a story in today’s Washington Post about the funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall that could soon run into trillions of dollars.

Because of these shortfalls, lawmakers are going to be forced to turn to tax payers to bail out these funds.

It’s going to be interesting to see lawmakers go to their constituents and ask for a tax bailout for this problem when pensions and premium retirement health care benefits are becoming the purview of the affluent or government sector retirees. I’m sure they’ll claim they are legally obligated to guarantee these benefits and thus taxpayers will be left holding the bag.

Now I can see why so many clamor for employment in the public sector.

On the other hand, many privately owned business jobs (in particular, non union) are saved by bankruptcy courts (taxpayer funded bailout). Perhaps we ought to have bankruptcy courts require that all employees be fired and the bankruptcy protected company hire anew?

Can't really have it both ways, hmm?

The last company I can think of offhand that received a bail out from the federal government was Chrysler – and that was in the late 1970’s. I know government on all levels provides tax breaks for business, but not loans. The process to do so would require an act of congress. Even some airlines were not able to secure federal loans after 9/11, which some had requested. If the federal government provided financing to firms during bankruptcy proceedings, it might make sense for solvent businesses to declare bankruptcy and bypass traditional means of securing financing and instead go to the government for infusions of cash. The government might be able to provide firms with a better rate than private lending institutions.

I'm wondering why the pension fund isn't set up in a trust? Maybe because it was initially cheaper for the gov't to control the pension funds themselves?

My guess is states have to use that money for other things since our government of compassionate conservatives have closed the purse strings in order to pay for their war.