Here’s a bombshell from the U.S. Census Bureau: State and local government pension plans lost $179 billion even before Wall Street collapsed. The news means that government liabilities may exceed the estimated $1 trillion shortfall in retirement funds and the $530 billion gap in health care benefits originally reported.

In a news release, Lisa Blumerman, chief of the Census Governments Division, said: “Shortfalls in state and local government pension plans may have long-term consequences for some state and local governments.”

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