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With the pension system in Michigan buckling under the weight of pricey promises, new laws are attempting to curtail the liabilities municipalities may face trying to fund their pension programs. However, many pension systems continue to put a strain on local governments - inadvertently leaving employees at risk for pension loss and employers owing. 

A report released by the Mackinac Center for Public Policy shows the majority of municipalities in Michigan cannot fully fund their programs, leaving them on a tight budget for other responsibilities. The report said the strain these pension programs can have on a municipality can result in pressure to raise taxes and cut the budget in other areas. 

State Sen. Kevin Daley (R-Arcadia Township) said that in the end, it is up to the communities to protect their own fiscal stability, regardless of legislation passed. 

“Legislation was passed a couple years to require local communities to report on the financial health of their pension systems and develop plans to address stability," Daley said. "Ultimately, it is up to local communities to manage these obligations.”

This report also showed that the majority of municipalities can only fund their pension programs at 71%. This has resulted in over $5 billion worth of unfunded pension liabilities. The debt has resulted in fiscal crises statewide.