While MOFD should not be declaring bankruptcy any time soon, it has massive hidden liabilities that need to be dealt with.

Its current audited balance sheet shows $11 million in net assets with $72 million in additional liabilities buried in the footnotes.  But this $61 million net liability is just the tip of the iceberg.  In reality MOFD has $700 million of future liabilities and $130 million of offsetting assets.  Even if those assets earn at a rate of six percent, they will be exhausted by 2030 with $430 million of liabilities remaining.

MOFD needs to start funding those underfunded liabilities with $3-4 million annually to pay them down over the next 30 years so that our legacy to future generations is not a half billion dollar bill for services we used but did not pay for.  To do this there needs to be an open community discussion on how this is going to be accomplished and not business as usual.

 

Full Text of Section VI - Financial Stability of MOFD