by Malia Hill www.HawaiiSunshine.org
When it comes to the pension situation in Hawaii, all news seems to be bad news. According to a recent article in the Hawaii Reporter, Hawaii ranks among the top 4 states in the nation for debt and pension burden.
This is not exactly the kind of accomplishment that should have us “gunning for number one.”
The ranking comes from a report from Moody’s Investor Service, which has been examining debt and pension liability in the different states as a way to get the clearest look at each state’s total obligations. Along with Massachusetts and Connecticut, Hawaii leads the country with the highest ratio of bonded debt to personal income as well as having some of the highest long-term debt as a percentage of the state gross domestic product. The scary numbers:
Long-Term Debt, Pension Liabilities as Percentage of Income
1. Hawaii 27.7%
2. Mississippi 22.8%
3. Connecticut 22.3%
4. New Mexico 21.9%
5. Alaska 21.6%
Long-Term Debt, Pension Liabilities as Percentage of State GDP
1. Hawaii 16.2%
2. Mississippi 15.9%
3. Connecticut 15.2%
4. West Virginia 14.5%
5. Massachusetts 14.2%
Source: Moody’s Investors Service
And for more good news, consider that–according to The Institute for Truth in Accounting, Hawaii isn’t meeting its balanced budget obligations because of the unfunded pension and healthcare benefits for state workers. That shortfall is about $39,600 per taxpayer, and if you’re like me, you don’t exactly have the difference sitting around the house in little sacks with $$ on them. Not that this will necessarily keep the government from trying to squeeze it out of us anyway. More gloomy stats:
Long-Term Debt, Pension Liabilities Per Capita
1. Connecticut 9,366
2. Hawaii 7,987
3. Massachusetts 7,872
4. New Jersey 7,198
5. Illinois 6,692
Source: Moody’s Investors Service
A tiny speck of light in the very dark tunnel: Governor Abercrombie did demonstrate some level of awareness of the problem in his recent State of the State address, promising that modernizing Hawaii’s Employees’ Retirement System will be one of his legislative priorities. Let’s just hope that it isn’t too little being executed too late.
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Interested in more information about state spending in Hawaii? Don’t forget to check out www.HawaiiSunshine.org.
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