Estimates of unfunded pension liabilities for the states as whole span a wide range, but some researchers put the figure as high as $ trillion at the end of 2009. 5 Estimates of states’ liabilities for retiree health benefits are even more uncertain because of the difficulty of projecting medical costs decades into the future.
However, one recent estimate suggests that state governments have a collective liability of almost $ billion for retiree health benefits. 6 These health benefits have usually been  alignment with tax revenues over time. Equivalently, the so-called primary budget deficit (the budget deficit exclusive of interest payments) must be reduced to zero.