February 7, 2007 4:23PM 

# Not Overstated 

By [Chris Edwards](https://www.cato.org/people/chris-edwards) 

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Last year, [Jagadeesh Gokhale and I estimated](https://www.cato.org/pubs/tbb/tbb_0925-40.pdf) \[pdf\] that state and local governments were sitting on about $1.4 trillion of promised, but unfunded, health care costs for their workers.

*The Economist* kindly discussed our estimate in their November 18 issue, but noted: “Even if Messrs Edwards and Gokhale have overstated the problem …”

It turns out that we hugely **understated** the problem for at least one state. We had New Jersey down for $20 billion, but [news from that state today](http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-6/1170827565187020.xml&coll=1) indicates that taxpayers may get hit with a $78 billion tab for state worker health costs unless are reforms are made (or $8,500 for every resident of the state).

##### Related Tags 

[General](https://www.cato.org/general), [Government and Politics](https://www.cato.org/government-politics), [Health Care](https://www.cato.org/health-care), [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

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