Unfunded Liabilities
Contributed by: Anonymous
Recently, the Milwaukee County Executive announced that their county would have to start budgeting (in 2007) for $29 Million dollars for unfunded health care liabilities. New government accounting rules will soon require government agencies to begin accounting for these future expenses. Luckily, Mark Harris has an accounting degree, so while he probably won't like this new budget item, he most certainly should acknowledge that this is truly an appropriate new accounting rule for these future liabilities. Only in government can you accrue a liability without budgeting for the future expense.
I wish that Winnebago County would discuss this issue. It may have been an oversight, but I know a county board member has privately asked this question and there has been no response. How much is the county liable for on these unfunded liabilities like unused sick pay, unused vacation pay, and future retiree health care costs?? I'd like to know.
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Unfunded Liabilities
Authored by: Mark L. Harris on Friday, February 10 2006 @ 06:07 AM MST
There will be changes in the rules regarding financial reporting by governments that take effect over the next several years. The requirement to disclose unfunded health care benefits will be an eye opener for governments that provide health benefits to retirees that do not fund those benefits over the working career of their employees. The County and the City of Oshkosh do not provide healthcare to retirees. The Oshkosh School district does provide a health benefit to retirees and it is on a pay as you go (unfunded) basis. The County has fully funded its pension costs. The only significant unfunded benefit for the County that comes to mind is the sick day payout. Employees are paid out 65% of the value of unused sick days at retirement . This benefit has been frozen for non-represented employees at the number of days and wages as of 12/31/05. The exact rules for estimating this liability will have to be sorted out over time. This liability will not be anywhere near the huge numbers that retiree healthcare will generate for Milwaukee.
Unfunded Liabilities
Authored by: DP on Friday, February 10 2006 @ 06:22 PM MST
Thank you for the great explanation. It's nice to know that our local governments are not facing a ticking time bomb with future health care costs.
Recently, the Milwaukee County Executive announced that their county would have to start budgeting (in 2007) for $29 Million dollars for unfunded health care liabilities. New government accounting rules will soon require government agencies to begin accounting for these future expenses. Luckily, Mark Harris has an accounting degree, so while he probably won't like this new budget item, he most certainly should acknowledge that this is truly an appropriate new accounting rule for these future liabilities. Only in government can you accrue a liability without budgeting for the future expense.
I wish that Winnebago County would discuss this issue. It may have been an oversight, but I know a county board member has privately asked this question and there has been no response. How much is the county liable for on these unfunded liabilities like unused sick pay, unused vacation pay, and future retiree health care costs?? I'd like to know.
The following comments are owned by whomever posted them. This site is not responsible for what they say.
Unfunded Liabilities
Authored by: Mark L. Harris on Friday, February 10 2006 @ 06:07 AM MST
There will be changes in the rules regarding financial reporting by governments that take effect over the next several years. The requirement to disclose unfunded health care benefits will be an eye opener for governments that provide health benefits to retirees that do not fund those benefits over the working career of their employees. The County and the City of Oshkosh do not provide healthcare to retirees. The Oshkosh School district does provide a health benefit to retirees and it is on a pay as you go (unfunded) basis. The County has fully funded its pension costs. The only significant unfunded benefit for the County that comes to mind is the sick day payout. Employees are paid out 65% of the value of unused sick days at retirement . This benefit has been frozen for non-represented employees at the number of days and wages as of 12/31/05. The exact rules for estimating this liability will have to be sorted out over time. This liability will not be anywhere near the huge numbers that retiree healthcare will generate for Milwaukee.
Unfunded Liabilities
Authored by: DP on Friday, February 10 2006 @ 06:22 PM MST
Thank you for the great explanation. It's nice to know that our local governments are not facing a ticking time bomb with future health care costs.
posted by Cheryl Hentz at 10:17 PM
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