State budgets and health care

Betsy Zeidman of The Milken Institute as quoted by Ezra Klein:

If you look forward 10 years, of course, pensions become a much bigger problem. But not the biggest one. “Assuming 30-year amortization beginning in 2014, [pensions] would rise to only 5.0 percent [of total state spending] and, even assuming a 5 percent discount rate, to only 9.1 percent.” Just like for the federal government, it’s health-care spending, not pensions, which poses the greatest long-term threat to the states: (bold mine)

In this respect, it’s such a simple story: health care, health care, health care. For the federal version, see this post.

Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on email

Hidden information below


* indicates required
Email Format