State and local governments have set aside virtually no money to pay $1 trillion or more in medical benefits for retired [union] civil servants. With bills coming due as baby boomers start to retire, states, cities, school districts and other governments will be forced to raise taxes.
The federal government has a $1.2 trillion unfunded obligation to pay medical costs for retired federal workers and military personnel. Medicare and Social Security push the nation's unfunded promises above $50 trillion.
Last year, for the first time, states and big cities were required to report the value of medical benefits promised to current and future retirees; state and local governments employ 20 million, and an additional 7 million are retired.
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