Healthcare Tax

Capitol Alert
By Dan Walters
dwalters@sacbee.com
May 11, 2016 – 12:15 PM

  • Pew report says California owes $80.3 billion for retiree health
  • Covering obligation would more than triple current spending

California is spending more than $2 billion a year on health care for retired state employees – up more than 80 percent in the last decade, according to Gov. Jerry Brown’s latest budget.

However, the state would have to spend over three times as much – $6.6 billion a year – to fully cover current health care costs and whittle down its $80.3 billion unfunded liability for future health care obligations, according to a new report from Pew Charitable Trusts.

California isn’t alone in facing a big retiree health care tab. California’s $80.3 billion liability may be the nation’s largest, but it’s just 12.8 percent of the $627 billion total for all states. Until recently, however, it was one of just 18 states that have set aside nothing to cover those future obligations.

To read expanded article, click here.