Kids in Connecticut are born broke – more than $27,000 in debt – because of billions in unfunded pension promises. State estimates suggest citizens owe $25 billion, but this Yankee Institute study found the real number is more than three times higher, $76.8 billion.
The state owes another $22.7 billion to cover retiree healthcare costs. To pay for these promises, Connecticut needs a plan. One solution would require raising taxes by nearly $1,500 per family, which could severely damage the economy.
Instead, the study recommends adopting defined-contribution plans – much like a 401(k) – for new state workers as soon as possible.
Read a summary of the study here.