Contra Costa County Delays Funding Retiree Health Care
The Contra Costa County Board of Supervisors on Tuesday approved a preliminary budget for next fiscal year that includes funding for current retiree health care costs but does not begin to pay for future liabilities, the Contra Costa Times reports.
The budget calls for the county to set aside $33 million to pay for next year's retiree health care costs. A county consultant had recommended setting aside $227 million to reduce liabilities for future retirees.
The county's obligation to current and future retirees is $2.6 billion, or the equivalent cost of five of California's largest counties combined.
However, the consultant estimates that the county's current pay-as-you-go method will increase the obligation to $4 billion by 2013.
Mary Piepho, chair of the Board of Supervisors, said the board would study the issue and have a plan for addressing the issue in the next six months (Huff, Contra Costa Times, 4/18).