The Math Test That New Jersey and Illinois Are Nearly Flunking
- The states receive Ds from Volcker group for pension debts
- Group sees progress as more states make full contributions
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It’s a math test that New Jersey, Illinois, and even Texas are nearly failing: How to pay for billions of dollars in unfunded liabilities for public-employee pensions and retiree health care.
They were among the six states that received a D minus grade, the lowest one possible, in a new report by the Volcker Alliance that scored how they’ve dealt with looming legacy costs over the past three years. Hawaii, Massachusetts, and Wyoming also received bottom grades, according to the non-profit organization founded by former Federal Reserve Chairman Paul Volcker to raise alarm bells about the long-term financial problems facing U.S. states.