Like credit card interest on purchase made long ago, unfunded pension liabilities for government employees will haunt taxpayers for years to come.

Politicians find it easy to gain favor with public employees by promising plump retirement benefits. The benefits are real compensation for employees, but the costs, like those credit card purchases, pushed off for another day.

In the last few years, changes in accounting standards have made the costs of pensions more transparent. That's a good thing, though taxpayers and the financial markets won't necessarily like what they can see.

According to this morning's Wall Street Journal (subscription may be required), "states collectively had about $330 billion in unfunded pension obligations in fiscal 2005, the last period for which complete data are available. That is $46 billion more than in fiscal 2004."

Some states have more than enough money to meet current obligations. But others have overpromised. The biggest shortfall was in West Virginia, with an unfunded liability ratio of more than 50 percent. Following close behind were Connecticut, Illinois and Oklahoma, in the low 40 percent. A 50 percent unfunded liability means that the state is legally bound to pay $2 for every $1 it has set aside.

Should taxpayers care? Absolutely. In most cases, pension promises are legally binding. In other words, taxpayers must pressure politicians to be frugal with other areas of spending if they wish to see the pension payouts financed without further tax increases.

For more examples from the states, see the Evergreen Freedom Foundation (Washington), the Allegheny Institute (link is in PDF) of Pennsylvania, and the Pacific Research Institute (California). The Reason Foundation offers a good overview of the problem, and how to fix it.