U.S. Fiscal Risk Digest

Key lawsuit highlights exposing state dodge of retiree benefits law:

• Retiree sues DBM for replacing statutory Rx programs with private "Via...

• Worker confidence in retirement savings drops to 61%, from 67% last year
• Nearly 60% blame healthcare costs; 70% worry about housing; 65% cite debt...

• California's $1T funds at record highs face union-backed divestment battles, despite tens of billions underfunded and past benefit cuts.
• New York...

The U.S. government is wading back into municipal arbitrage rules that have restricted the tax-exempt bond market for decades, targeting concerns over proceeds used to finance projects.

• Historic milestone: Publicly held debt reached $31.27 trillion as of March 31, exceeding 100% of GDP.
• Nearing WWII-era record high.
• Follow the money: Critical to track national debt flows amid surging burdens.

Early warnings from retired CFO Leslie Finger in Oct/Nov 2025 highlighted $500k federal tax penalties, missing reports, and multi-million special ed...

Omnibus Pension Bill progressing toward final passage, building on last year's law capping cities' health insurance obligations for certain retirees at a maximum of 60 months—key defense on OPEB liabilities.

Michigan Gov. Whitmer’s FY2026 budget draws fire for new taxes on smokers, vapers, gamblers, digital ads, and landfills projected to raise $879...

Federal Debt and Pension Crunches

• 🔥 US Debt Breaches $31 Trillion: The U.S. Senate passed a FY2026 budget resolution without a plan to address...

2026 brings mixed signals for Social Security recipients:

• COLA boost diluted: SSA adds ~$56/month, but Medicare premiums deduct $18 before checks...

Washington's budget vulnerability exposed: State could forfeit $700M+ annually in federal tax credit scholarships if it skips opt-in.

• Taxpayer...

The Warsh Plan proposes Fed-led financial repression via sub-inflation rates to slash federal debt, favoring REITs and utilities over long-term bonds. A stealthy fiscal fix amid rising rates and inflation pressures.

Public pensions are blending risky investments with unrealistic assumptions, creating a huge funding gap and growing risk exposure that alarms experts on their long-term viability.

Escalating fiscal trend hits retirees and taxpayers:

• Federal debt breaches $31 trillion, exceeding GDP for first time
• Senate FY2026 budget lacks...

Widespread fiscal squeezes signal taxpayer pain ahead.

• Chicago's red ink: $163M deficit prompts $80M state aid demand, despite 16.7% property tax...

USPS suspends $200M bi-weekly pension contributions to save $2.5B amid deepening cash crisis, as rural delivery costs rise. Spotlights federal off-book retiree liabilities on the brink.

New Orleans' fiscal 2026 budget appears balanced with equal revenues and expenditures, but relies on multiple one-time measures to close the gap. Structural deficits loom for 2027, hitting taxpayers hard.

• Hidden tax trap: Up to 85% of SS benefits taxed if combined income exceeds $34K single/$44K joint—thresholds frozen since 1993.
• Bracket creep...

Shrinking enrollment and rising costs are squeezing Florida schools as lawmakers return to Tallahassee next week for a pivotal budget at a critical moment for public education.

State pension fights spotlight COLA protections and funding threats:

• Oklahoma win: Lawmakers protected TRS funding and funded COLAs for retirees...