Fiscal watchdog Dean Andal worries escalating health care costs will subvert Stockton’s recovery (see item, below) and possibly even knock the city back into bankruptcy.
City Spokesperson Connie Cochran says the city has it covered:
“One of the changes that we made in the last couple of years is asking employees to pay a fair share of health care costs. The City’s contribution is capped. The projections anticipate an increase in the cap (of 2% per annum–MF), not the anticipated rates in the market. Employees will pay any increase above the cap.”
So Andal’s concern is misplaced. As best I can tell, short of another recession only the state pension system, CalPERS, can really sabotage Stockton’s recovery. And the city appears to have guarded against that contingency tolerably well.