Illinois is estimating its liability for retiree health care at $24 billion, the Bond Buyer ^[1] reports. All states have to include such liabilities in their financial statements this year under a new accounting rule.

The number is much lower than the $43 billion estimate that a business group, the Civic Committee ^[2] of the Commercial Club of Chicago, came up with. But it’s still a lot of money, Federation president Lawrence Msall told the Bond Buyer:

The Federation has not seen the actual OPEB (other post-employment benefits liability) but if it is in the magnitude of $25 billion it is a dramatic increase in the stated liabilities of the state. … The state needs to reform both its funding of pensions and reform its generous benefits.

The health-care figure comes on top of $42 billion in unfunded pension liabilities, which is one of the largest numbers for any state.

Missouri’s retiree health care liability is about $2.2 billion, and a recent study by the Pew Charitable Trusts ^[3] gives the state credit for at least beginning to fund that liability.