David Crane July 31, 2020
As Congress considers a $100 billion Covid-related financial-support package to help states and localities gear up for the coming school year, California should act quickly to plug leaks that will cost its own schools their likely share of that aid. The San Francisco Unified School District (UFUSD), for example, which serves 60,000 students, received more than $1 billion in revenues last fiscal year............
Indeed, the district now spends more than $100 million per year on retirement costs, equivalent to $1,750 per pupil. To make matters worse, that $100 million doesn’t even include accrued-but-unpaid retirement costs for which debt is issued—and the balance of which now exceeds $1 billion..........
This explosion in costs was due to sharp growth in pension liabilities that were hidden by deceptive accounting..............San Francisco’s insurance-subsidy program, for example, provides medical-insurance benefits to retirees and their spouses—even when those beneficiaries are already eligible for Medicare..............
Based on its population, California’s share of Congress’s $100 billion K-12 package would be $12 billion. Thus, more than 100 percent of federal support for California’s schools would be consumed by retirement spending.............The evidence is clear: before sending more money down the drain, California should plug these leaks........To Read More....
As Congress considers a $100 billion Covid-related financial-support package to help states and localities gear up for the coming school year, California should act quickly to plug leaks that will cost its own schools their likely share of that aid. The San Francisco Unified School District (UFUSD), for example, which serves 60,000 students, received more than $1 billion in revenues last fiscal year............
Indeed, the district now spends more than $100 million per year on retirement costs, equivalent to $1,750 per pupil. To make matters worse, that $100 million doesn’t even include accrued-but-unpaid retirement costs for which debt is issued—and the balance of which now exceeds $1 billion..........
This explosion in costs was due to sharp growth in pension liabilities that were hidden by deceptive accounting..............San Francisco’s insurance-subsidy program, for example, provides medical-insurance benefits to retirees and their spouses—even when those beneficiaries are already eligible for Medicare..............
Based on its population, California’s share of Congress’s $100 billion K-12 package would be $12 billion. Thus, more than 100 percent of federal support for California’s schools would be consumed by retirement spending.............The evidence is clear: before sending more money down the drain, California should plug these leaks........To Read More....
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