Monday, January 27, 2014

California's 'wall of debt' is only a slice of its liability problem

Wow.  That's a lot of money.
On the issue of retiree health care, the state hasn't set aside money for future expenses, instead opting to directly pay the costs as they arise. But if the state started saving now for the future cost of coverage that's been promised to state workers in retirement, that would trigger accounting changes. As a result, the state could reduce its long-term liabilities by $20 billion almost immediately, said Ryan Miller, a senior analyst in the state's Legislative Analyst's Office.

While teachers' pensions and retiree health care have gotten the most attention, they're not the only liabilities.

Almost $65 billion is needed to pay for deferred maintenance of state roadways, bridges and other infrastructure.

Nearly $9 billion is owed to the federal government for unemployment benefits that have been borrowed over the years.

The University of California pension and retiree health care plans are $25 billion underfunded.   

The graphic is from the article, too.

No comments:

Post a Comment