States where taxes could increase the most from pension fund shortfalls
A new study, co-authored by Joshua Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester, argues state and local governments will need to raise taxes by an average of $1,398 per household every year for the next 30 years in order to fully fund their pension systems. The slideshow highlights the 10 states that would see the highest tax increases. The data is based on 2009 contribution rates, according to the Rauh and Novy-Marx study. The unfunded pension liability data for each state is based on 2009 data from Moody's Investors Service.