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Unfunded Liability for Health Care Shrinking

By Associated Press

Montgomery, AL – The state government's huge unfunded liability for the health care costs of its retirees is shrinking.

State officials say the unfunded liability has gone down by more than $2 billion because the state has created two trust funds to save money for the unfunded liability and it has set aside money for the trust funds.

Actuaries estimate the unfunded liability has dropped from nearly $20 billion to nearly $18 billion.

State Finance Director Jim Main says the drop is good news. It coincides with preparations for the state's sale of $1 billion in school construction bonds in December. Main says the better the state's bond rating, the less it will cost the state to sell the bonds.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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