Source: U.S. News & World Report
While the financial woes are a result of a confluence of circumstances, analysts say one culprit stands above the rest. “Pensions are one of the most untold stories of why this is happening,” says Chad Aldeman, an associate partner at Bellwether Education Partners, an education policy organization in Washington. “These are big dollar amounts at play that people haven’t conceptualized.” According to the Federal Reserve, employee pensions across state and local governments are underfunded to the tune of $1.7 trillion.