A lot of promises have been made over the years to retired state workers. A new study of states’ pension liabilities shows North Carolina faces a severe liability, and that is sounding the alarm bells to officials. Carolina Journal Managing Editor Rick Henderson explains the fiscal impact of the liability, how our state compares to other states, and the role of State Treasurer Janet Cowell’s office in the pension fund. Then we turn to the role of economics in policy decisions. More people would have a better understanding of the way the world works if economists did a better job teaching the basic rules of their field. That’s the idea George Mason University economics professor Peter Boettke shared during a recent presentation to Campbell University students. Boettke explains why a better understanding of economic principles would help people make better decisions about public policy. Next we turn to the state’s job situation. Legislative Democrats and their allies in the state party have been complaining in recent weeks about job losses associated with the new state budget. Senate President Pro Tem Phil Berger, R-Rockingham, rebutted that criticism during a recent news briefing. You’ll hear Berger explain why he believes the Democrats’ comments are overblown. That’s followed by an extensive look at a recent proposal to merge some of the state’s smaller community colleges. According to legislative data, North Carolina taxpayers could save as much as $5 million a year by merging some of the state’s 58 existing colleges. Catherine Moga Bryant of the General Assembly’s Program Evaluation Division recently delivered that news to state lawmakers. You’ll hear highlights from Bryant’s presentation, along with the concerns of Scott Ralls, N.C. Community College System president. Then Jay Schalin of the Pope Center for Higher Education Policy offers his view that the merger plan is worthy of serious consideration.