A ticking time bomb

California state and local governments are facing liabilities of $118 billion or more over the next 30 years to fund promises of generous health-care benefits for retired public employees, according to a state commission report released Monday. Harrison Sheppard in the Daily News.

The findings result from the first comprehensive statewide effort to measure the massive looming liabilities amid growing concern that the debt could bite into government coffers unless officials start setting aside billions of dollars every year.

And the commission, created last year by Gov. Arnold Schwarzenegger, said the growing liabilities mean governments need to begin investing now to build up a permanent fund rather than simply paying out of pocket every year.