Editorial: Pension outlook darkens for Calif. taxpayers
Publisher’s note: This editorial is from the Jan. 17, 2016, Orange County Register.
Despite fairly steady economic growth and state budget surpluses, California’s unfunded public employee pension liabilities are spiking. As detailed by Stanford University research scholar David Crane on the Fox & Hounds website, year-end reports pegged the increase in unfunded pension promises for the California Public Employees Retirement System at $15 billion and for the California State Teachers Retirement System at $9 billion.
Total spike in unfunded liabilities for fiscal year 2014-15, which ended June 30: $24 billion.
Before last year, total unfunded pension liabilities, as detailed in Gov. Jerry Brown’s budget proposal for fiscal year 2016-17, were $72.7 billion for CalSTRS and $43.3 billion for CalPERS. Adding up everything, the new total unfunded liability for both giant pension funds is $140 billion.