Even California can not afford its current population:
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[SIZE=+1]California's hidden deficit[/SIZE]
SFGate.com ^ | 3/16/06 | Editorial
Over the past four decades, health-care premiums have grown dramatically, as has the extent of coverage the state has promised to retirees and their spouses or domestic partners. Today, the state is paying $738 a month to cover the premiums of a fully vested 60-year-old retiree and his or her spouse. The state's overall health-care outlay for retirees is approaching $1 billion a year.
But the strain on today's budget would be far greater if our elected leaders in Sacramento were willing to face up to the true cost of the promises they are making to state employees. ...
In other words, the state is not setting aside a dime to provide retirement-health care to today's workers, even though 35 percent to 45 percent of them are expected to retire in the next decade, with the cost of insurance expected to keep rising.
Starting next year, the federal government is going to require state and local governments to do what corporations have been doing as a standard accounting practice since 1990 -- include their future retiree-health benefits on the books.
The state is going to be in for quite a shock.
According to a recent Legislative Analyst's Office report on this ominous, but heretofore hidden, growth in the cost of government, the state's unfunded liability for future retiree health-care costs could reach $70 billion or more over the next 30 years. ... Outrageously, the loud alarm from this report generated little more than a shrug from most of the people in power in Sacramento.
------------------------------------------------
[SIZE=+1]California's hidden deficit[/SIZE]
SFGate.com ^ | 3/16/06 | Editorial
Over the past four decades, health-care premiums have grown dramatically, as has the extent of coverage the state has promised to retirees and their spouses or domestic partners. Today, the state is paying $738 a month to cover the premiums of a fully vested 60-year-old retiree and his or her spouse. The state's overall health-care outlay for retirees is approaching $1 billion a year.
But the strain on today's budget would be far greater if our elected leaders in Sacramento were willing to face up to the true cost of the promises they are making to state employees. ...
In other words, the state is not setting aside a dime to provide retirement-health care to today's workers, even though 35 percent to 45 percent of them are expected to retire in the next decade, with the cost of insurance expected to keep rising.
Starting next year, the federal government is going to require state and local governments to do what corporations have been doing as a standard accounting practice since 1990 -- include their future retiree-health benefits on the books.
The state is going to be in for quite a shock.
According to a recent Legislative Analyst's Office report on this ominous, but heretofore hidden, growth in the cost of government, the state's unfunded liability for future retiree health-care costs could reach $70 billion or more over the next 30 years. ... Outrageously, the loud alarm from this report generated little more than a shrug from most of the people in power in Sacramento.
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