March 16, 2016
"Thanks to new accounting standards, California’s state and local governments are being forced to acknowledge tens of billions of dollars in previously obscure debt for unfunded pension liabilities.
"The Governmental Accounting Standards Board says that “unfunded actuarial accrued liabilities” should be listed on balance sheets...such as Los Angeles County’s $8 billion-plus unfunded pension debt.
"State Sen. John Moorlach, R-Costa Mesa, has been keeping a running tab and says that in just nine large counties, including Los Angeles, total pension debts top $20 billion.
"A recent report from the state controller pegs “net pension liability” for the state’s public safety and “miscellaneous” employees for the 2012-14 fiscal year at $34 billion on $128.7 billion in pension obligations -- a 26 percent shortfall...If earnings are just 1 percentage point lower, the debt balloons to more than $50 billion."