When calculating from December 2007 -- the month that the National Bureau of Economic Research determined was the start of the Great Recession -- state and local government employment has fallen by 703,000 jobs amid a downturn that cost the nation more than 8 million jobs overall. In other words, almost 10% of unemployment is caused by state and local governments firing people. Wow. That is scary.
That's one of the tidbits from an excellent McClatchey article that speaks truth to talking points. It turns out there *isn't* an immediate pension crisis -- as with Social Security, if not a single thing were changed about state and local pensions, they're solvent for the near future and can pay at least 80% of benefits in the far future. And unlike Social Security, state and local pension funds will gain value as Wall Street goes up again and as they win their lawsuits against the bond rating agencies for rating trash as AAA securities, meaning that even that pessimistic take on their solvency probably isn't true.
-- Badtux the Fact-based Penguin