For decades, the obligation to give state and county retirees their healthcare benefits has been handled on a pay-as-you-go basis; there is no investment fund to pay for them, as the Employee Retirement System (ERS) pays for their pensions.

Finally, state leadership is confronting the elephant in the room — more by necessity than by choice. The Government Accounting Standards Board, overseers of government bookkeeping, is now requiring that the unfunded liability of healthcare benefits be disclosed.

So the state and counties had to find out, more precisely, what that liability is. And, according to a report discussed at a legislative briefing last week, it would cost a mind-numbing $11 billion to cover retirement healthcare expenses for local government's current and retired workers.

A plan of attack is essential. State Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui), who heads the Senate Ways and Means Committee, advocates for a working group to begin the discussions now so that decisions on how to handle this liability could begin at the next legislative session.

The governor's office is poised to assemble such a working group; as Baker rightly asserts, it should include policymakers as well as state and county administrations. Broad consultation on the correct approach would enhance the chances of a working group crafting a package that could pass next session.

States across the nation are in various stages of the same process. Some are clinging to the pay-as-you-go model, but considering that this could affect a state's credit rating, this seems an irresponsible course. At least part of that liability will have to be funded in advance.

The state's past cavalier approach with the ERS has led to shortfalls in that fund, so fiscal prudence is absolutely essential. There should be some discussion of reducing benefits for future state and county workers; government will only dig itself a deeper hole by continuing spending at the same levels.

However, many public workers gave up higher salaries in the private sector because of the promise of a more comfortable retirement. Government owes its current and retired employees the benefits it promised them.