As if these consequences weren’t bad enough, the state’s public pension program will suffer as well. At the end of fiscal year 2018, the report notes, the state had only about 40% of the funds needed to cover its long-term obligations. Now, it says, “recession-induced declines in asset values could result in a sharp and sudden increase in unfunded liabilities.”That means more and more revenue will have to be diverted to supporting government retirees instead of providing services to the general population.