Putting more of a strain on the taxpayers.

“Unfunded liabilities”

By Guest Column R. Earl Warren (Bio and Archives)  Wednesday, June 20, 2012 | Print friendly | Subscribe | Email Us

We hear the phrase “unfunded liabilities” being tossed around by politicos and governing boards but do we understand what there are, or more importantly, what they mean to us?

An unfunded liability is a debt. But unlike some debts for which there is an offsetting income or plan, these are debts that are often without a sufficient revenue stream. This is especially true in today’s economy with the normal revenue producers - taxes, interest on investments and bond sales drying up.

Here’s the scary part. We owe the debt and we (the citizens) will be on the hook to pay the tab.

In the case of localized Districts, the people within those districts will have to step up with the money if it isn’t there to fund retirements that were promised. It’s just that simple.

The State of Florida has recognized the precariousness of these special districts and is requiring them to put more into the pot, thus reducing the unfunded portion by a few percent. Where’s that money coming from?

The taxpayers will just pay more taxes - putting more of a strain on the taxpayers.

R. Earl Warren
Englewood, FL