UPDATE 11/9/2013: MK says the problem is much larger than this. AND SEE: Liabilities for the Town of Greenburgh, Irvington, and IUFSD. Our district pays health-care costs for retirees and their spouses for life. This chart shows a 64.82% increase in what we will owe in the future over the past two years’ time, a period of record-low inflation (and record-low wage increases). The term for post-retirement health care paid for by the district is “Other Post Employment Benefits” or OPEB. The increase in future obligations as of June 30, 2013:

 YEAR  OPEB* Obligation  2-year % increase Core PCE year-on-year (Inflation) August 2013**
 June 30, 2011 $16,857,318
 June 30, 2012 $22,056,552 30.84%
 June 30, 2013 $27,784,130 25.97% 64.82%  1.2%

*OPEB = Other Post Employment Benefits *Core PCE = Personal Consumption Expenditure: prices excluding food and energy. Core PCE is the measure of inflation used by the Federal Reserve. Complete analysis and explanation here: Retiree Health Benefits