Analyst says California faces $340 billion in debt

Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Updated: 5/07/2014 2:26 pm

SACRAMENTO, Calif. (AP) — A new report says California state government faces $340 billion in debts, or more than $8,500 for each resident.

The nonpartisan Legislative Analyst's Office said Wednesday that the state should set priorities for paying down its key long-term liabilities.

It first should address the $74 billion shortfall in the teachers' retirement system, a debt that could cost $5 billion a year to resolve.

Paying down the $65 billion shortfall in health benefits given to retired state employees and their dependents should come next. That could cost the state nearly $2 billion a year.

The report comes a month before the Legislature must send the state budget to the governor. It feeds debates over whether California should spend or save its budget surplus and how to create a rainy day fund.

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

0 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

No comments yet!

Featured Segments/Shows

All content © Copyright 2015 Intermountain West Communications, LLC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
You may also view our Sitemap

Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.