Monday, February 20, 2006
More UC retirees healthcare woes....
From the Wall Street Journal online 02/20/06
Big Bill: California's promised health-care benefits for retirees could total as much as $70 billion and could force the state to set aside as much as $6 billion a year to fund the looming tab, according to a state legislative analysis released Friday. The obligation stems from health benefits the state has promised to its employees and their dependants once they retire. A new accounting rule that goes into effect next year requires states and local governments to recognize the value of these obligations and start figuring out how to pay for them. The analysis recommended that the California Legislature start looking for ways to fund the obligation but noted s that "given the state's budget situation" immediately setting aside $6 billion a year "is unrealistic." -- Deborah Solomon