Friday, September 5, 2008
Instapundit has a post here discussing how state and local government pension plans are underfunded. One of his readers make a point that these budgets are drawn up in an annual fashion, with no thinking about the long term. As someone who has worked with the Federal budget I cannot but agree. The US Government budgets on an annual basis with a two year projection and a five year plan. This means that every year the two and five year plan can be changed completely. It is always based on the needs of the moment. To make things worse, in DoD at least, we would move money around within the year to fix problems by robbing other programs of their funds.