Flint Has 29 Cents For Each Dollar Needed To Cover Pension Promises
Annual income: $100 million; total pension promises: $388 million; result: misery
The city of Flint is $388 million short of the amount it should have invested to cover the pension promises it has made to its employees. The amount represents just 29 cents for every dollar in unfunded pension debt.
Flint has also offered to provide post-employment health insurance benefits to retirees, for which it should have $266 million set aside. Unlike pensions however, these payments are not guaranteed by a specific provision in the state constitution.
The city of Flint’s annual revenue is around $100 million a year.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.