Wednesday, December 19, 2012
Ohio not high on Forbes list
Marietta Times: Ohio is one of 11 states that made the Forbes list of danger spots for investors. The financial magazine predicted rising taxes, declining state revenue, an employer “exodus,” and a rotten housing market in Ohio, which Forbes termed a “sick” state and a fiscal “hellhole.”
Forbes said one reason Ohio makes the list is that it has as many people receiving their incomes from the government as it does from the private sector. This includes government employees, government retirees and people in the private sector who are on government support.
Credit issue
Another reason Forbes includes Ohio in its list of states in a “death spiral” is credit-worthiness. The Buckeye State’s unhealthy public pensions damages its credit-worthiness.
We don’t completely agree with Forbes’ doom-and-gloom prediction. There have been many promising developments such as the shale play for oil and natural gas in eastern Ohio and state budget reforms that have actually resulted in a rainy day fund.
But the dismal condition of Ohio’s public pension system is not debatable, nor is the need for ongoing reform. If for no other reason, Ohio should continue tweaking its unsustainable pension system to avoid the horrible publicity that arises from lists like Forbes’ “death spiral” states.