States Warned of $2 Trillion Pensions Shortfall
Published: Tuesday, 18 Jan 2011 | 4:51 AM ET Text Size By: Nicole Bullock, Financial Times
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US public pensions face a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.
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hey, didn't these unions spend all of their pension money getting democrats elected?
Campaign's Big Spender
Public-Employees Union Now Leads All Groups in Independent Election Outlays.
By BRODY MULLINS And JOHN D. MCKINNON
The American Federation of State, County and Municipal Employees is now the biggest outside spender of the 2010 elections, thanks to an 11th-hour effort to boost Democrats that has vaulted the public-sector union ahead of the U.S. Chamber of Commerce, the AFL-CIO and a flock of new Republican groups in campaign spending.
AFSCME, the public-employees union, has vaulted ahead of the U.S. Chamber of Commerce to become the largest campaign spender of 2010.
The 1.6 million-member
AFSCME is spending a total of $87.5 million on the elections after tapping into a $16 million emergency account to help fortify the Democrats' hold on Congress. Last week, AFSCME dug deeper, taking out a $2 million loan to fund its push. The group is spending money on television advertisements, phone calls, campaign mailings and other political efforts, helped by a Supreme Court decision that loosened restrictions on campaign spending.
"
We're the big dog," said Larry Scanlon, the head of AFSCME's political operations. "But we don't like to brag."
The 2010 election could be pivotal for
public-sector unions, whose clout helped shield members from the worst of the economic downturn. In the 2009 stimulus and other legislation, Democratic lawmakers sent more than $160 billion in federal cash to states, aimed in large part at preventing public-sector layoffs.
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