03/15/2013 07:42 am ET Updated May 15, 2013

MSU Report: Michigan Municipalities Face $13B Bill For Retiree Benefits (and Crisis Is Going To Get Worse)

LANSING, MI -- Michigan municipalities face a combined $12.7 billion price tag for retiree benefits they promised to employees but have not yet paid for, according to a new report released today by Michigan State University.

"I think as a state, for our local governments, this is the biggest long-term financial challenge we have right now," lead author Eric Scorsone said this morning after testifying before the House Financial Liability Committee, suggesting that the unfunded liabilities are already causing financial stress in communities across the state.