MADISON, Wis. (AP) — A new report says Wisconsin’s 25 largest cities face $2.25 billion in unfunded retiree health care liabilities.
The report released Monday by the Wisconsin Policy Forum finds that between 2013 and 2016 most of the state’s 25 largest cities made progress in reducing the size of their unfunded commitments.
But projected costs in Milwaukee and Racine alone erased the gains made by the others. The expected cost of retirement health care costs in Milwaukee and Racine rose by more than $228 million over that time.
That erased the $120 million decrease in expected health care costs in the other cities.
The analysis finds that cities took on the liabilities by promising generous health care benefits to workers after they retired, sometimes in exchange for lower pay raises.