News Headlines Article

What’s ahead for state health benefits
Sacramento Bee

Let’s break out the crystal ball and peer into the future for Gov. Jerry Brown’s plan to bargain state-employee and retiree health benefits with unions.

Background: California spends about $3 billion on medical benefits for state workers, plus $2 billion for retirees. Unfunded obligations to retirees over the next 30 years approach $72 billion. If nothing changes, experts have said, that long-term unfunded liability will more than quadruple by midcentury because the state sets aside nothing for those promised benefits.