The article discusses the financial challenges faced by state and local governments due to underfunded public employee pension and health care liabilities. It explores the potential fiscal crisis caused by these liabilities and the legal constraints on pension reform. The main issue is that government pensions are still largely defined benefit plans, which can lead to significant financial burdens on future generations. The article suggests that moving towards contribution plans, like those in the private sector, could help alleviate some of these financial pressures.