News Headlines Article

Retiree health care still a long-term problem for California
Sacramento Bee

The sound of backslapping between Gov. Jerry Brown and union leaders who helped put his tax initiative over the top last week could soon turn to teeth-gnashing and bargaining-table-pounding as the administration takes on a touchy subject: retiree health care.

The state estimates its long-term retiree medical commitments stand at $62 billion, and it has put virtually nothing aside to pay those obligations.

It’s the most expensive way to do business, sort of like making interest-only payments on a mortgage.