U.S. Fiscal Risk Digest

• Compliance audit by PA Auditor General on Duboistown Borough Non-Uniformed Pension Plan
• Conducted pursuant to Municipal Pension Plan authority
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Escalating sovereign debt risks from balance sheet gaps, debt ceiling fights, and foreign selloffs threaten sustainability and taxpayers:

• $44T net...

2026 cracks widening into fractures: LAO projects $18B deficit for 2026-27 (vs. admin's $2.9B), hitting $35B structural gaps by 2027-28—fourth year...

Student loan asset-backed securities (SLABS) are investments based on outstanding student loans – prompting questions about their safety amid federal guarantees.

CRFB proposal targets wealthy retirees to shield ordinary taxpayers from post-2030 crunch:

• Six-figure payouts: ~1M get $50K+/yr individually;...

NY public unions rally for Tier 6 fixes, risking reversal of $80 billion in 30-year savings from 2012 reforms.

Key demands amid April 1 budget...

Phoenix faces muni crunch as federal ARPA aid expires, forcing surplus raids for services and amid soaring pensions:

• ARPA replacement: $18.4M from...

2026 could plant the seeds of a new sovereign debt crisis, shifting from periphery flare-ups to the US fiscal–market nexus as the central locus of systemic risk.

Kentucky's state cabinets face severe fiscal mismanagement:

• $1B+ financial reporting mistakes for FY2025, including $170M+ underreported Medicaid...

• Funded ratio climbs to 66.6% (from 64.8%), unfunded liability shrinks $1.1B—modest gains amid steady contributions.
• Employer rates ease to...

• Debt service nightmare: CBO projects interest payments rising from $1 trillion in 2026 to over $6T as debt swells.
• OpEd verdict: U.S. fiscal...

Treasury's own statements flag U.S. technical insolvency with liabilities topping assets by $44 trillion, echoing 15 years of GAO audit failures.

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• $7M+ SNAP shortfalls hit populous counties like Cuyahoga ($7.5M loss) from federal cuts
• State shifts $10M taxpayer funds + $2.5M federal...

Key angles on California's AB 1054 pension expansion:

• $14B+ long-term hit: Lawmakers push retirement boosts for CHP/CalFire officers/firefighters,...

• Buyout extension touted for $1.4B savings through FY2028, atop $2.9B since 2018—but total unfunded liabilities still $143B with funding <50%.
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Rhode Island's temporary fiscal relief hides deeper pressures:

• Restrictions lifted: 2024 emergency hiring/spending curbs rescinded March 6 due to...

Milestone alert: National debt reached $39 trillion on March 17, rising $7B daily ($80K/second).

• Equals ~$290K per household across 130-135M homes....

Shifting U.S. debt ownership raises stability flags as Cayman Islands surges ahead:

• China slashed holdings to lowest since 2008 amid...

Federal promises on state/local cyber grants are authorized but unfunded, leaving infrastructure vulnerable amid Chinese malware in rail, ports, and...

• Reason Foundation report: Unrealistic pension assumptions putting Alabama in debt, with RSA unfunded liabilities growing without reform.
• RSA...