The internet has made it easier than ever to get to primary sources such as government budgets. That’s one reason we encourage members of the GFC Network to skip intermediaries and just go direct. For example, earlier today the Los Angeles Times had a front page article entitled “California hopes for relief” in which the reporters … Continue reading LA Times Can Do Better
Category: OPEB
Other Post-Employment Benefits
NYT Can Do Better
A recent article in the New York Times about election results in California included the following sentence (italics added by me): “A measure that would have raised taxes on commercial landlords to raise billions for a state that sorely needs revenue also seemed on track for defeat.” The reporters did not provide support for their assertion — which they … Continue reading NYT Can Do Better
How LA Could Save $398 Million
Yesterday, LA’s City Administrative Officer announced the city’s budget deficit could reach $400 million to $600 million by the end of the current fiscal year. According to page 201 of LA’s Comprehensive Annual Financial Report, LA spends $398 million per year supplying health insurance subsidies to retirees under the city’s other post-employment benefits (OPEB) program. LA could … Continue reading How LA Could Save $398 Million
San Francisco Retirement Spending
Annual cash spending by the City and County of San Francisco on pensions and other post-employment benefits increased 146 percent from 2010 to 2019, to $864 million per year: Unfunded liabilities for pensions and other post-employment benefits grew even more — 243 percent, to $8.3 billion: Absent a cut in unfunded liabilities, San Franciscans can expect continuing growth … Continue reading San Francisco Retirement Spending
How To Help Poor And Minority Students In Sacramento
This is the most recent demographic breakdown of pupils attending the Sacramento City Unified School District: 82 percent non-White and 70 percent socioeconomically disadvantaged, last year the district authorized teacher layoffs to help address a pre-COVID deficit that would not exist but for subsidies provided to retired employees at an annual expense of $50 million, … Continue reading How To Help Poor And Minority Students In Sacramento
How Kamala Harris Could Walk Her Talk
After our email last week encouraging US Senator Kamala Harris to help eliminate California’s extraordinary spending on unnecessary insurance subsidies for retired public employees (OPEB), some of you asked why we thought someone like Senator Harris with such a long history of support from public employee unions would be willing to help on that issue. We have … Continue reading How Kamala Harris Could Walk Her Talk
Kamala Harris Could Help Save California Programs From Budget Cuts
Before running for office, US Senator Kamala Harris was employed for 13 years as an attorney by the counties of Alameda and San Francisco, which provide expensive insurance subsidies to retired employees such as herself. In the case of San Francisco during the years Ms. Harris worked there, those lifetime benefits extend to employees who worked only … Continue reading Kamala Harris Could Help Save California Programs From Budget Cuts
A Plan To Save San Francisco $120 Million Per Year And Eliminate $3 Billion of Debt
To assist deficit-reduction deliberations, Govern For California commissioned an actuarial analysis of an alternative plan design for the City and County of San Francisco Postretirement Health Plan, which is an other postemployment benefit (“OPEB”) for retired city employees. The alternative plan would reduce the city’s annual OPEB cash spending by $123 million and more in … Continue reading A Plan To Save San Francisco $120 Million Per Year And Eliminate $3 Billion of Debt
Memo To CA State Legislators: Cost Savings From OPEB Reform In California
Some of you have asked for an estimate of the savings California could realize from reforming OPEB (Other Post-Employment Benefits) subsidies of retired employee health insurance. California pays 100% of the health insurance premium cost for retirees and 90% of the additional premium required for the enrollment of retirees’ family members. Colorado caps OPEB subsidies … Continue reading Memo To CA State Legislators: Cost Savings From OPEB Reform In California
An Urgent Memo To CA State Legislators
1. You have the power to change OPEB. See page 136 of the state’s Comprehensive Annual Financial Report: 2. The State incurs more than $7 billion of OPEB expense each year. To see for yourself, add together the “Service Cost + Interest” figures for each unit on pages 204–209 of the CAFR. 3. That huge expense relates to … Continue reading An Urgent Memo To CA State Legislators