Wednesday, March 16, 2016

California: That's trillion, with a "T."

The Stanford Institute for Economic Policy Research (SIFER) estimated that California’s pension and retiree health care unfunded liabilities exceeded $1.2 trillion in 2013–significantly higher than all previous reports, according to preliminary figures obtained from SIFEF by Insolvent Film.

The Stanford study the estimated total unfunded liabilities for pension and retiree health care (aka “other post employment benefits” or OPEB) for all California state and local public agencies and found that liabilities are estimated to exceed $1.2 trillion for 2013 – several times what previous estimates pegged the figure at, according to professor Joe Nation.

State and local taxpayers are on the hook for the entire debt, which would take an estimated 10 years of California General Fund spending to retire, assuming all tax dollars were dedicated to debt repayment, Nation said.