The funding liabilities of the California State Teachers Retirement System, coupled with the cost of retiree health benefits, is putting the state’s budget at high risk, according to a report from the state auditor.

From 2001 through the end of fiscal 2012, the report said the proportion of future liabilities that are funded by CalSTRS – the nation’s largest public teachers’ retirement system with more than 860,000 members and benefits recipients – fell from 98 percent to 67 percent. That is far below the recommendation of the Government Accountability Office, which believes that such liabilities should be funded at 80 percent.

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