1/ Here's an example of how CA is leaving billions of federal dollars on the table.

2/ Assume a state employee with three dependents retires at age 60 with a pension of $80,000 per year.

3/ Under current law, the State of CA will provide the retiree and dependents with medical and prescription drug benefits. The state will pay 100% of the retiree's health insurance premium and 90% of the premiums for the dependents.

4/ But the federally-funded Affordable Care Act provides premium support for families of four with up to $103,000 per year of income.

5/ Nevertheless, under current law California doesn't require retirees to make use of federal benefits before invading the state budget. Make sense to you?

6/ Transit agencies, school districts and cities are leaving even more money on the table.

7/ That's because, on top of federal support, the state provides additional premium support to families of four with incomes up to $154,500 per year. But transit agencies, schools and cities aren't requiring retirees to access those benefits before invading their budgets.

8/ And even though Medicare is good enough for Bernie Sanders, apparently it's not good enough for retired CA public employees when they reach age 65.

9/ That's because CA also provides unlimited subsidies to retired employees on Medicare. Oregon limits subsidies to retirees to $60 per month.

10/ That means CA taxpayers are paying the unlimited Part B, prescription drug and out of pocket costs for retired public employees on Medicare. Make sense to you?

11/ That's how you get to ~$10 billion of spending every year by the state and its subsidiaries on retiree health subsidies. That's enough to fund UC, CSU and Courts every year.

12/ The CA Legislature must require retired employees to take full advantage of federal and state health insurance programs before invading prior employers' budgets for limited subsidies.