Add unfunded debts to lawmakers' challenges
Published February 3, 2017
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Dale Folwell[/caption]
Editorial by Fayetteville Observer, February 3, 2017
Dale Folwell's nightmares often arrive with a title: unfunded liabilities. That may be a little esoteric for most of us, but when you're North Carolina's state treasurer, that dream can be pretty scary.
One of Folwell's top issues on the campaign trail last year was finding a way to pay for the pension and health care liabilities for retired public employees. The unfunded total explains why it's a nightmare: $38 billion.
The treasurer formed a committee to find a way to make up the shortfall before it threatens the state's triple-A bond rating - a distinction shared by only a dozen states. The panel approved a plan Wednesday and will forward its recommendations to the General Assembly. It starts with putting $153 million into a special fund next year, with large payments continuing well into the future.
Folwell's recommendation is one more reason why lawmakers need to carefully ponder our future needs and obligations before setting up another round of tax cuts. Failure could bring even uglier nightmares.
February 3, 2017 at 10:21 am
Bruce Stanley says:
Economic growth in NC as a result of 2013 tax reform has generated the budget surpluses we've been enjoying the past 3 fiscal years. Does the Fayetteville Observer think going back to the budget deficits will be better than surpluses for addressing the unfundated liabilities?
