California’s public employees not only receive the most generous pension benefits in the nation, but they also receive enviable healthcare and dental benefits. Such generosity, of course, is paid by taxpayers—and in many cases not paid at all. California is amassing a growing level of debt as the costs for those benefits exceed direct state payments.
A new report from California State Controller Malia Cohen explains that “the state’s net liability for retiree health and dental benefits—also known as other post-employment benefits (OPEB)—increased to $91.5 billion.”
That’s a $6.3-billion boost. The reasons include inflation, higher claims and changes in “plan design” that boosted costs, per her office’s statement.
For context, California’s total general-fund budget receipts are around $2