The study concluded that "state government liabilities are likely in the range of $40 billion to $70 billion - and perhaps more" over the next 30 years, And that's not all. The liabilities the University of California, local governments and school districts combined "could exceed those of the state itself."
Put another way, the combined liability for state, local, UC and school-district retiree health care could hit more than $140 billion over the next 30 years.
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The study's outcome is a "rough guess" of an obligation of $6 billion a year from the general fund - just for the state-government obligation, not including the tab for UC and school district retirees.
This would include $2 billion a year to pay for the future costs of current employees (about $1 billion of which currently is paid from the state general fund, leaving $1 billion unfunded). And "around $4 billion more in yearly payments to retire the unfunded retiree health liability over 30 years."
So the state obligation still is short by $5 billion a year. If not paid now, that debt will keep accruing. That amount nearly doubles the general-fund structural deficit of $6 billion a year.
At what point will CA start to deny benefits and procedures to keep the tab down? I don't think that point will be too long in the future, first they'll get the old people without any family and then they'll deny the really old people extraordinary treatment. This will all be done for the benefit of the California taxpayer and few will complain, just those affected. Tell me why it would be a good idea to have the federal government in charge of health care.
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