It’s called the unfunded liability. From 2012 to 2013 it grew by $730 million.
That’s actually less than expected because there have been fewer health care claims and health care inflation was lower than expected.
But State Controller John Chiang says the state should stop covering only the minimum amount needed to fund health care costs as they are due.
Instead, some money should be set aside in a trust solely for future retiree benefits, just like a savings account.
“Get the benefit of some interest and you will grow your money, same thing for trying to take down the health care obligations for the state of California," says Chiang. "If you can’t make full payment, let’s make some payment and make the tax obligations that are going to be used in the future drop significantly.”
Chiang says the state could save more than $20 billion by pre-funding its obligation.
The legislature and Governor would have to approve the change.
May 30, 2018Fair Political Practices Commission chairperson Jodi Remke announced Tuesday that she will step down on Friday. It follows months of acrimony with other commissioners.
February 22, 2018His resignation followed an outside investigation, which found that Mendoza likely engaged in "flirtatious or sexually suggestive" behavior with six different women, including former staffers and fellows. The allegations date back to 2007.
February 20, 2018A summary of the Senate’s outside investigation comes after the chamber’s Rules Committee met in closed session to discuss Mendoza’s fate for the second weekday in a row.
January 18, 2018New legislative efforts supporting the “Me Too” anti-harassment movement could change the reporting process for victims filing complaints.
October 26, 2017Women in California politics, protesting sexual harassment and abuse at the Capitol, distrust the response from legislative leaders.
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