For a bronze-level plan with a health savings account, Melquist said, “we pay $15,000 a year” in premiums “and the first $6,550 (for health care expenses) for each of us comes out of our pocket. So basically you could be looking at $30,000 out-of-pocket before anything gets covered.”
About 595 people were contributing and 110 received benefits in 2005, Hunt said. Ten years later the number of former city employees receiving benefits climbed to 594, while the number of contributors declined to 476, the councilman said.
“We can’t very well sustain that,” Hunt said.
Although many of those IOUs have since been paid, a similar amount in unprocessed bills has replaced them in the last three months, Comptroller Susana Mendoza’s office said Monday. That’s in addition to $9 billion worth of checks that are at the office but being delayed because the state lacks the money to pay them.
Those numbers show New Jersey’s public pension system is actually underfunded by $168 billion. And that does not include an additional $85 billion shortfall for the medical benefits of retirees. The bottom line is a state retirement system that faces a future debt of $253 billion.
Gov. Bruce Rauner decided last month to issue bonds to pay down more than $16 billion in overdue bills to human services, medical providers, private businesses, schools, and more. The state’s five pension systems also are underfunded by more than $130 billion.
Rauner also says the fiscal 2018 budget approved in July is out of balance by about $1.7 billion despite a $5 billion income tax increase approved by lawmakers. The income tax increase went into effect July 1 and costs the average household about $1,000 annually.
Colleges and universities collectively owe $240 billion, the Moody’s bond-rating service reports. That debt rose 18 percent, to $145 billion, in the last five years at public universities, Moody’s says. At privates, it went up 3 percent, to $95 billion.
It neglected the electricity system, leaving it dilapidated and prone to prolonged outages. The water utility, which was leaking untreated sewage, put a $1.4 billion construction plan on hold. At least 5,800 police and firefighting jobs were cut. Unable to cover its share, Puerto Rico lost federal funds for work on its 4,800 miles (7,700 kilometers) of roads.
Federal spending rose $130 billion in fiscal 2017, largely driven by a handful of agencies. Spending for Social Security rose $29 billion, and Medicare spending increased $22 billion.
News of the billions of euros in profits are likely to anger hardliners in the Greek government who have long urged the ECB to allow Greece into the central bank’s current QE package.
The SMP profits have been promised to Greece at various points during its seven years of financial rescues.
BOJ Governor Haruhiko Kuroda on Tuesday reiterated the central bank’s resolve to maintain its massive stimulus programme until inflation moved sustainably above its 2 percent price target.
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