Then-General Treasurer Gina M. Raimondo, then-Gov. Lincoln D. Chafee and the General Assembly did a difficult and courageous thing in 2011 when they faced the state's pension crisis head on.
Would that someone would step forward to tackle a similar and potentially more devastating problem facing Rhode Island's towns and cities.
Based on the most recent statistics developed by the state, the unfunded pension liability for local municipal plans in Rhode Island exceeded $2 billion in 2015, even as many cities and towns try to increase funding to those plans. Of the 10 plans that are most underfunded on a percentage basis (all of them with a funded ration of less than 35 percent), the Coventry police plan is the big "winner" with an unfunded liability of $62.5 million and a funded ratio of 14.6 percent.
As daunting as that may seem, there is an even bigger shortfall in the resources put away for other post-employment benefits (mainly health care). It's an issue that has been hidden from view for a long time. But new accounting rules coming online in 2018 will require that the liability be quantified and municipal governments account for how they will pay for them. And based on state statistics calculated in 2013, that number is greater than $3 billion.
Gov. Raimondo in her current position needs to show the political courage that helped her gain the top office in the Statehouse. She needs to lead a similar, clear-eyed assessment of this issue and put the state's municipalities on a path to sustainability. The alternative is municipal Armageddon. •