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What Cities' Revenue-Raising Methods Say About Their Pension Funding
Governing: For a range of reasons, some local governments have accumulated massive unfunded pension liabilities over many years. Most often, these shortfalls are attributed to political climates, downturns in the local economy and aging populations.
New research reveals that cities' revenue structures -- the mix of taxes, fees and intergovernmental aid they take in -- also play a critical role, potentially putting some places at greater risk of mounting pension liabilities.
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