They do, and the biggest part of those projected costs is the healthcare for retirees. Many government insurance pools are self-insured, and old people consume

They do, and the biggest part of those projected costs is the healthcare for retirees. Many government insurance pools are self-insured, and old people consume a lot of healthcare. But the Berkeley professor is still right in a way. Every single dollar in future retirement pay or health benefits for a public employee was negotiated in good faith in exchange for lower pay right now, this year, so we can balance the budget. Throw in term limits and a little demagoguery and politicians have every incentive to cut a deal that balances the budget this year while kicking costs down the road. So when the Prof mentioned that for the last 30 years, our society has been taking out a loan for our kids to repay, he was still correct, especially when looking at these graphs.