February 24, 2011

Budget Battles: Solving the Crunch

Matthew D. Mitchell

Senior Research Fellow

Matthew Mitchell discussed union collective bargaining and the affect this has on state budgets on CNBC’s Squawk on the Street. Mitchell said: 

“Nationwide, public pensions are underfunded to the tune of about $3 trillion. The current budget crises are big, and according to the Government Accountability Office, the budget gaps over the next 50 years loom much larger. These budget gaps are driven by expensive collective bargaining agreements that involve pensions and extremely expensive retirement benefits.”