Moody’s, a leading credit rating agency, says it has begun treating unfunded pension liabilities like bond debt “giving California a combiners tax-supported debt of $136.9 billion.”
According to Moody’s press release, “Pensions have always had an important place in our analysis of states, but we looked separately at tax-supported bonds and pension funds in our published financial ratios,” says Moody’s analyst Ted Hampton. “Presenting combined debt and pension figures offers a more integrated — and timely — view of states’ total obligations.”
The full report from Moody’s, Combining Debt and Pension Liabilities of U.S. States Enhances Comparability is available online for fee of $550.
Bill Gram-Reefer is Editor & Publisher of Halfway To Concord, founded in 2004. Halfway To Concord is the leading online source for community-driven political news, events, and opinion for Contra Costa County and the San Francisco East Bay.
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It’s funny how a billion here and a billion there eventually can really add up.
Here’s an amusing and informative demonstration that offers perspective on large scale government spending — which is helpful given the inability of most people to understand huge numbers:
http://www.youtube.com/watch?v=Yk_jToBbpWU&feature=player_embedded