The State of California like many governments provides healthcare to its retirees but what the state does not have is a fiscally prudent plan for how to fund these benefits into the future. Spokesperson for California Treasurer John Chiang, Jacob Roper, says health care costs are more of a threat than pensions*
Instead of having a fiscally prudent plan for how to fund these health care benefits Roper says California has been paying just the minimum amount due each year.
The treasurer warns the unfunded liability is going to reach $72 billion dollars if nothing is done.
Treasurer Chiang has long warned of the growing unfunded liability related to healthcare for State retirees. He is now pleased that the Governor has also rung the opening bell on what he hopes will be a robust debate on how to pay for retiree health benefits in a manner that preserves quality of care but also minimizes costs for taxpayers and the civic workforce who serves them.