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Blue Model Blues
Red States Take the Lead in Quest for Pension Stability

Institutional Investor argues that some states have started to take pension reform seriously:

For many of America’s underfunded public defined benefit systems, there’s no painless path forward — only pain now or pain later. And despite a few standout examples of the “pain later” camp, a growing number of plans have toughed out reforms aimed at long-term survival. But some states have gone farther, creating dedicated funding sources or rainy-day funds, which have been picking up steam this year. […]

Among those steps: establishing dedicated funding sources, such as revenues from gambling or so-called sin taxes (on cigarettes and alcohol, for example).

And which states would these be? Institutional Investor singles out Oklahoma, Kansas, and Montana for taking proactive measures to increase revenue—mostly red states run by, gasp, Republicans that Democrats claim are hostile to state workers.

Of course, it hasn’t just been a scramble to increase revenues. Oklahoma and Indiana have tried (and failed) to switch their teachers away from defined benefit to defined contribution plans. But making no promises that you cannot keep, and taking appropriate steps to make sure you do keep the promises you have made is what all states should be doing.

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  • Beauceron

    Blue states know they don’t need to worry about it.
    State debt will be federalized, and those in red states will pick up the tab.

  • Kevin

    I thought Kansas was a fiscal disaster area according to this blog.

  • FriendlyGoat

    So long as red states curb the pensions of all law enforcement personnel as much and at the same time as they curb the pensions of other public employees, the process should be okay. The moment you smell any kind of carve-out of special treatment for cops is the moment you are seeing a political screw-over.

    • Genesis123

      Wrong. People whose job is to risk their lives everyday deserve more protection that diversity coordinators. I hope there are special carve-outs for police and firefighters. Those are the functions government SHOULD be doing.
      BTW, have you heard the good news. Kentucky decided to join the freedom movement and became a right to work state.
      http://thehill.com/homenews/news/313251-ky-governor-signs-right-to-work-law
      Sorry fruitcake. Nobody believes your stupid ides. Soon my taxes will go down. To be honest, I would gladly give up my tax savings to return back to life 4 kids killed in Jerusalem. Alas, it does not work that way.

      • FriendlyGoat

        Behind every tree, in every conceivable mask, we will find JR, the irrepressible stalker.

        • Genesis123

          You’re the doucheb@g that keeps on getting my ID’s blocked. I had my original JR id for years. Typical liberal, blaming others for his own actions. Your worship of the Lightbringer is truly remarkable. That alone makes it worth it to watch President Trump destroy that dimwits legacy. I mean, I’m excited. Did you notice my name? I know who’s on my side.
          Once again, your only response is ad hominems. Because you don’t want to confront the reality of people rejecting your Statist ideas. People of KY had it with your BS. More and more states are following in RTW tracks. You can act like a whiny little twit who tells on people, but you are powerless to stop the march of history.

          • FriendlyGoat

            Moving from New Jersey to Kentucky soon?

          • Genesis123

            I’m not in the union, so these rules do not affect me. But it is pleasing to see your philosophy being grounded into dust. And that’s after Abu Hussein, the Lightbringer, made NLBR a rubber stamp for unions. But nothing can prop faulty economic theories forever. The only question is whether you will live to see those laws disappear in all but a few places or if you’ll kick it before that. That decision is left up to One God.

          • FriendlyGoat

            Mortgage traders have no need of collective bargaining because their skills are more “specialized” than the average working stiff? How convenient. But, gee, I’d have sworn candidate Trump was going to make life great for all those blue collar guys—-not just NY/NJ slickers. Tsk. Tsk. Your take on this would sound like your guy lied to a whole country and you endorsed the scam. Who could have predicted such outcomes?

          • Genesis123

            Republicans in KY ran on right to work and won on right to work. This has nothing to do with Trump. Now these blue collar workers don’t need to have their money stolen from the union. That is what they voted for.
            don’t you get it yet? Your scare tactics don’t work anymore. Detroit bankruptcy was the death knell for unions as it showed everyone what union control leads to. People widened up and rejected unionism. Hell, Michigan is a right to work state.

          • FriendlyGoat

            So you’re moving down there to get in on the gravy train, right?

          • Genesis123

            I’m not a blue collar worker. But unlike you, I don’t hold them in contempt. I believe they have as much right to work for themselves as I do. I’m glad that more and more states are choosing to side with regular Americans over corrupt unions. Your ideas keep losing, both here and abroad. Turns out what Lightbringer was bringing you was not gold, but poop. Too bad you have a mouthful of it, but then again, it was your choice.
            but keep advocating for your failed economic theories. Knowing you will be there to watch freedom march over your Statist paradise is a pleasant thing indeed.

          • FriendlyGoat

            Actually you do hold them in contempt by belittling all the left-side effort that literally pulled workers up from peon status over a couple of centuries. Maybe someday a set of algorithms will make your work totally obsolete and knock your ego down a notch. I’ve been around actual working people all my life and I know their political neutering by the Chamber of Commerce gang when I see it. You’re in a darn bubble and you don’t see it. Move to Kentucky and test out that RTW dream. $14.00 an hour will cover everything you and your family could possibly need. No doubt about that BECAUSE you celebrate it for everyone else out there in flyover land.

    • The Crow & Seagull

      Very true. The police pensions are the most currupt and poorly managed. It only makes sense that they should feel the heat.

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