California faces a $63.84 billion obligation to cover state retirees' medical expenses over the next three decades, according to state Controller John Chiang.
The figure, which captures unfunded retiree health care costs from mid-2012 through mid-2042, is up nearly 3 percent in the last year.
For the most part, the state pays those expenses as they come up. The bill for the current fiscal year will hit an estimated $1.8 billion, about $100 million more than in 2011-12.
Chiang wants the government to set money aside and invest it for retiree medical obligations.
For example, if the state paid almost 10 percent extra, about $170 million, it would cut $2.74 billion from its unfunded liability, according to his office's estimates.