It’s called the unfunded liability. From 2012 to 2013 it grew by $730 million.
That’s actually less than expected because there have been fewer health care claims and health care inflation was lower than expected.
But State Controller John Chiang says the state should stop covering only the minimum amount needed to fund health care costs as they are due.
Instead, some money should be set aside in a trust solely for future retiree benefits, just like a savings account.
Chiang says the state could save more than $20 billion by pre-funding its obligation.
“Get the benefit of some interest and you will grow your money, same thing for trying to take down the health care obligations for the state of California," says Chiang. "If you can’t make full payment, let’s make some payment and make the tax obligations that are going to be used in the future drop significantly.”
California depends on gas tax revenues to maintain its roads. But that revenue is declining. Now the state is looking for volunteers to try out a new funding method, but volunteering could cost you money.
California lawmakers are considering imposing limits on short-term online rental services like Airbnb. A Senate committee took up the issue today.
California Governor Jerry Brown is calling on local water agencies to adjust their pricing structures as a way to promote conservation. But a state court ruling issued today could undermine those efforts.
California’s system of water rights is coming under scrutiny as the state’s drought gets worse. Today Governor Jerry Brown indicated there may be some changes coming to the century-old system.
Governor Jerry Brown has declined to say whether he supports a bill that would extend Medi-Cal to some undocumented immigrants in California.