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May 15, 2006
ASBJ reports on soaring health care, pension costsForget unfunded mandates. The new menace for local school districts may be unfunded liabilities for benefits. New federal accounting rules requiring districts to set aside money for future retiree benefits are threatening districts' fiscal stability. For example, Los Angeles Unified School District's unfunded benefits liability has grown by $10 billion in just 18 months. Add this to skyrocketing health care costs and you have what the American School Board Journal calls a gathering storm.
May's cover story says that the rising cost of benefits is squeezing other parts of school district's overall compensation plans. And the solution, the article notes, is for districts to be up front with the public about financial struggles.
Posted May 15, 2006 2:17 PM | School Finance
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