We warned that this might happen on Marketplace Money, but I am still stunned.
The Texas State legislature has passed a bill exempting Texas from Governmental Accounting Standards Board Rule 45. GASB 45 is a phased in requirement that sets standards for state and local governments to calculate how much they have promised to pay their retirees in health care benefits. It’s estimated that state and local governments in Texas are on the hook for $50 billion in future benefits. Nationwide, estimates range from $1 trillion to $2 trillion. That’s real money. Don’t you think taxpayers should know what politicans have promised public employees over the years?
GASB is a good rule. The move by Texas is bad public policy.
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