Michigan’s school pension funding hole just got deeper. As of 2016, the system is $29.1 billion short of the amount its own analysts say is needed to cover future benefits. Last year, the shortfall was $26.7 billion. The new figure means the pension fund has only enough to cover 59.7 percent of the benefits owed to current and future school retirees.

The $29.1 billion unfunded liability is $2.4 billion higher than in 2015. It represents a debt that will cost taxpayers an additional $2.18 billion in annual interest. That’s more than the $2.00 billion the state will spend on its prison system this year.

 

Stay Engaged

Simply enter your email below to receive our weekly email:

Facebook
Twitter

There aren’t many policies that get near unanimous support from economists, but free trade is one of them. Despite this, a central theme of the 2016 presidential campaign, heard from both political parties, was that free trade was somehow harmful to the United States and corrective action was needed. Mark Perry, an economics professor at the University of Michigan-Flint and scholar with the American Enterprise Institute, makes the case for why President Trump’s assessment of free trade is misguided.

Related Sites