The Chris Christie Of Michigan Just Published A Devastating Report On Public Sector Pay

rick snyder

Michigan faces a $1.5 billion deficit for 2011. Total government debt exceeds $70 billion. Unfunded costs for pension and retiree health care add another $55 billion.

New Republican Governor Rick Snyder published a 20-page booklet to explain this fiscal crisis to state residents.

In the booklet it is clear what Snyder blames for the fiscal crisis and what he wants to cut. Namely, public sector wages and benefits.

Average wages of state employees increased 19%, while private wages decreased 13% over the decade

Michigan is shrinking AND ageing

Michigan is lagging behind in income growth

Spending generally exceeds revenue by billions

Here's the cash flow breakdown. Note how important federal funds are (33%) to Michigan. What happens if these get cut?

Increases in state spending have been hoarded by health care, leading to cuts in areas like infrastructure

Michigan state and school reserves are massively depleted

Michigan's rainy day fund has been nonexistent for years

Michigan has been running a deficit, making cuts, then running a deficit again for a decade.

Debt obligations are soaring

Even scarier: debt compared to income

State debt now exceeds 100% of tax revenue

Now lets talk about the pension. Total unfunded liabilities are approaching $50 billion. Only $18 billion are constitutionally guaranteed

By the end of 2010 Michigan's unemployment fund was $3 billion in the red

The cumulative budget gap (which counts pension obligations) stands at $43.3 billion

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