Municipal governments are beginning to confront the growing

Official Explanation

The original sentence utilizes a semicolon, the proper use of which has two requirements: First, the clauses before and after the semicolon must be able to function as independent sentences and second, the clauses must be closely related in terms of subject matter. In the original sentence, the second clause refers back to the first clause, both requirements are satisfied, and the semicolon is used properly. However, the GMAT doesn't permit the use of this as a Pronoun (without a noun following), since this by itself has no clear antecedent. The author wants to refer to the entire action of the first clause (the fact that municipal governments are confronting these liabilities), but this cannot do so.

Additionally, the growing pension liabilities in the first part of the sentence is incorrect in its use of the article the, as the pension liabilities were not referenced earlier in the sentence. Finally, the verb form in the second clause is not Parallel to the verb form in the first clause (beginning... leads). Though the lack of parallelism is grammatically permissible between two independent clauses, a better construction is available.

(A) This choice is incorrect as it repeats the original sentence.

(B) Here, the plural pronoun their is used correctly, referring to the plural antecedent municipal governments. However, the second clause leading local politicians... does not function as an independent sentence, making the use of the semicolon improper.

(C) Which is used improperly in this choice. The intention of the author is to have the entire action of the first clause act as the subject of leads, not just the pension liabilities. Which cannot refer to the entire action prior. Moreover, the verbs are not parallel (beginning... leads). As a result, the second part of the sentence is incorrect, as the use of a comma instead of a semicolon means that both verbs now appear in the same sentence.

(D) CORRECT. The form leading indicates that the whole action of the first part of the sentence is what is leading in the second part of the sentence. Moreover, the plural pronoun their is properly used to refer to the plural antecedent municipal governments.

(E) That is used improperly This answer choice is incorrect because the verbs are not parallel (beginning... leads). As a result the second part of the sentence is incorrect, as the use of a comma instead of a semicolon means that both verbs now appear in the same sentence.

Answer: D