(Harrisburg) — A new report by the Corbett administration is warning of higher taxes, lower business growth and steeper borrowing costs because of the state's public-sector pension plans.
Today, the state Budget office released a study with updated cost figures to fully fund pension plans for state workers and public school employees.
The report says the two plans together have an unfunded liability of $41 billion.
The state paid nearly $1.1 billion into the State Employees Retirement System and Public School Employees Retirement System during the fiscal year that ended in June. That figure is projected to pass $2.2 billion next year and reach $5.1 billion by 2019.
The report says higher pension costs threaten the state budget and will claim a greater share of local school spending.
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