A postscript to my column on state bankruptcy:
Vox, April 29:
And while pension funds are indeed a chronic challenge in some states, that’s not what’s going on right now. What’s happening right now is we’re in a pandemic.
“Trying to blame the current need for federal assistance on things like public pensions seems dishonest to me and is sort of laying the blame of where are right now at the feet of the wrong culprit. There are long-term issues that states are going to have to deal with, but now is not necessarily the time to do it,” Rueben said. “We need to put out the fire before we rebuild the house.”
Los Angeles Times editorial, April 28:
States and cities aren’t looking for ways to shore up their pension funds; they’re looking for ways to keep police and firefighters on the streets, educate their students remotely and provide other basic services.
Not only is McConnell focused on the wrong problem, he’s offering the wrong solution.
New York Times report, April 17:
Illinois needs more than $40 billion in relief from the federal government because of the coronavirus pandemic — including $10 billion to help bail out its beleaguered pension system, according to a letter the Illinois Senate president sent to members of Congress. . . .
Though Mr. Harmon pointed to the pandemic as the reason Illinois needed help, the problems with its pension system far predate the coronavirus. It is considered by experts to be one of the worst funded in the nation.