After a lengthy analysis, San Francisco has finally determined its unfunded retiree health care liability, the amount of benefits city workers have earned that San Francisco is mandated to pay out, no matter what: $4.36 billion.
That's a $360 million jump from just two years ago, the last time the city controller's office calculated how much we were going to owe down the line.
“These are very large numbers,” says Ben Rosenfield, the city's controller. But wait — they get larger. By 2033, the liability is expected to grow to $9.7 billion. “Money will be spent well into the future to meet that liability and it'll come from the city's operating budget.”
What does this mean?