Grand Jury Warns School Districts
Unfunded Liability Called 'Ticking Time Bomb'
POSTED: 1:27 pm PDT May 10, 2010
UPDATED: 2:44 pm PDT May 10, 2010
UPDATED: 2:44 pm PDT May 10, 2010
Sacramento County school districts are sitting on a "fiscal time bomb" when it comes to unfunded retiree health benefits, according to an early final report issued by the county grand jury.
The jury found that districts have a an unfunded liability for such benefits approaching $1 billion.
"The grand jury is concerned that the districts report huge liabilities, but twelve of thirteen districts have no funds to pay the liabilities and are not setting aside any money to pay them," Grand Jury Foreperson Rosemary Kelley wrote. "These obligations are not going away, however, just because they are ignored."
Sacramento City Unified School District alone owes $560 million and is trying to put aside $1 million each year to pay the obligation, the jury found.
"The liabilities are so large that school districts may go bankrupt or retired teachers may not receive health benefits," the report states. "Yet many
The jury found that districts have a an unfunded liability for such benefits approaching $1 billion.
"The grand jury is concerned that the districts report huge liabilities, but twelve of thirteen districts have no funds to pay the liabilities and are not setting aside any money to pay them," Grand Jury Foreperson Rosemary Kelley wrote. "These obligations are not going away, however, just because they are ignored."
Sacramento City Unified School District alone owes $560 million and is trying to put aside $1 million each year to pay the obligation, the jury found.
"The liabilities are so large that school districts may go bankrupt or retired teachers may not receive health benefits," the report states. "Yet many
