Sacramento County Grand Jury
• 2009-2010
Unfunded Liabilities for Retiree Health Benefits a School District Fiscal Time Bomb!
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 2 findings
F1
Sacramento County school district boards are not knowledgeable about the ultimate long- term fiscal impacts the unfunded liability for retiree health benefits will have on their districts.
Related Recommendations (1)
R1
1 Sacramento County school district boards and superintendents, with advice from actuaries and accountants, should immediately assess and quantify their long-term OPEB obligations and ramifications.
F2
Sacramento County school districts have a variety of approaches in addressing the unfunded liabilities for contracted retiree health benefits. Some of those approaches include: · Creating trust funds or other funding plans but stopping all contributions to them due to current economic conditions · Creating trust funds and contributing to them · Ignoring the problem · Regarding the GASB standards as a “plan” when in fact it is only an accounting statement · Utilizing an annual pay-as-you-go approach to these obligations, relying on their general funds for retiree health benefits.
Related Recommendations (1)
R2
2 School district boards must find means other than pay-as-you-go for funding these ongoing and increasing expenses.
Conclusions 5
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CL1Sacramento County school district boards are not knowledgeable about the ultimate long- term fiscal impacts the unfunded liability for retiree health benefits will have on their districts.
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CL2Sacramento County school districts have a variety of approaches in addressing the unfunded liabilities for contracted retiree health benefits. Some of those approaches include: Creating trust funds or other funding plans but stopping all contributions to them due to current economic conditions Creating trust funds and contributing to them • Ignoring the problem Regarding the GASB standards as a "plan" when in fact it is only an accounting statement • Utilizing an annual pay-as-you-go approach to these obligations, relying on their general funds for retiree health benefits.
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CL3Ignoring the problem
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CL4Utilizing an annual pay-as-you-go approach to these obligations, relying on their general funds for retiree health benefits.
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CL5Frank Porter, Superintendent, Twin Rivers Unified School District