‘Unsustainable’

Public pension liabilities getting worse

For decades, politicians in Nevada and across the country have blissfully adopted an “If we ignore it, maybe it’ll go away” approach to the public-sector pension crisis. But it’s not going away.

The Pew Charitable Trusts this week released its latest report on the fiscal health of government pensions. The news remains grim — and continues to get worse.

“Many state retirement systems are on an unsustainable course, coming up short on their investment targets and having failed to set aside enough money to fund the pension promises made to public employees,” the study concludes. “Even as contributions from taxpayers over the past decade doubled as a share of state revenue, the total still fell short of what is needed to improve the funding situation.” Among the findings for the year 2016:

States had a cumulative deficit of $1.4 trillion, up a whopping 27 percent from 2015. The trend has been ever upward since 2000.

The average pension system assumes an annual return on investment of 7.5 percent, a number that allows many states to disguise funding shortfalls by projecting overly optimistic gains. The systemwide average return in 2016 was 1 percent.

States are now taking on higher levels of investment risk in order to try to minimize shortfalls, an approach that could have major long-term consequences in the face of market volatility.

Only four states — New York, Tennessee, South Dakota and Wisconsin — had at least 90 percent of the assets needed to pay promised benefits. Nevada was at 72 percent, ranking in a tie for 20th.

The crisis is directly tied to political decisions dating back decades to curry favor with government unions by increasing retirement payouts and benefits. In return, those same labor organizations donate generously to elected officials — largely Democrats — who support sweetheart pension deals.

Left staring agape at the check are the taxpayers, most of whom have no access to the type of retirement benefits they are forced to fund for government workers.

Democrats may want to rethink this dynamic. While some states and municipalities may have years until they face a day of reckoning, others are teetering at the edge of the abyss thanks to generous pension payouts. Short of bankruptcy, officials will have to make difficult decisions that could be tough to explain to voters.

“As states try to prop up their pension funds,” The Associated Press reported Thursday, “it means less money is available for core government services such as education, public safety and parks.” And absent reform, the possibility increases that current public employees won’t see the benefits they’ve been promised.

The market’s strong performance in 2017 might act as a tourniquet on this spurting wound. But this issue won’t just “go away” — and Nevada lawmakers who refuse to uncover their eyes should bow out of Carson City.

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This giant isn’t blue. It’s red, and you will see the numbers reflect this as the registration gap closes in Nevada and across the nation. Those who register as independents will also start leaning more and more right. Say what you want about the progressive moment, Americans will never betray the true roots of freedom. Many Republicans and Democrats are now registered independents and bleed “red, white and blue.” They have grown disenchanted with the GOP and the Democratic National Committee.

Last week, House Minority Leader Nancy Pelosi actually stated that if the Democrats get control they will repeal the tax cuts. When you consider how the Affordable Care Act has failed middle-class America with high premiums and out-ofpocket costs, I don’t think repealing the tax cuts is the right message. In fact, I just learned that in 2019 outof-pocket expenses will be significantly increasing for individuals and families. No, I don’t see that “blue wave” coming.

If the Republicans actually come up with a good health insurance solution and learn how to communicate better, the wave we will see is red. Truth be told, Americans are not happy with the FBI using FISA as a tool, using a porno actress as a pawn and using their powers to deceive all of us.

The “no-knock raid” on Michael Cohen is a perfect example of the FBI overreaching to make a point.

You can use any poll you’d like if you want to hear what you want to hear. But I’m telling you that true Americans will never allow our nation to adopt a progressive agenda. They want to live in our nation, free and safe.