Gary Palmer: Whistling past the fiscal graveyard

  With all the talk of proration and deep cuts in state spending, most people in Alabama are well aware of the dire financial condition of the state of Alabama. What they probably do not realize is that the situation is even worse than it appears and is getting worse.

  Alabama, like almost every other state, is carrying massive unfunded liabilities for state and education employee pensions and health benefits that are requiring massive payments to remain solvent. Almost $1 billion of the $5.6 billion 2011 education budget passed during the last legislative session was to keep Alabama’s pension programs funded. Just over $1 billion more was appropriated to keep the health benefits programs funded.