It's all going to the pensions. Retiree obligations. And then some. Because it has to.
Not to beat a dead horse, but think of it this way...They have lowered it for new hires, but OH had the 90% walkout. So, you get out of college at 22 and get hired on, at an entry-level salary. You get your masters online at no cost to you typically, and it bumps up quite a bit. At 57, you have 35 years in which was enough to get the 90% walkout. Now you're making let's say $90,000. Conservative, but we'll roll with it. So if you retire at 57 with a cash pension of $81,000/year to start and you get a 3% COLA each year, compounded it's simple math. So as the next 10 years go by, your cash pension is:
$81,000
$83,430
$85,932
$88,511
$91,166
$93,901
$96,718
$99,620
$102,608
$105,687 by the time you're 67 and if you last another 20 or even 30 years? You'd be amazed where it's going.
I know a guy who was selling cars in Cali and he had a guy in his mid-90s come in several years back. Maybe 6 years back. Retired teacher. Retired nearly 40 years. He said he asked him his weekly income and he said $5,000. Told me he said "Sir, I need to get your weekly income. Is that maybe your monthly?" and the guy looked at him funny and said "No, weekly. Monthly is $20,000." And it was 100% pension, not dividends or other investments. Just wow. A quarter million a year for not working.
Teacher salaries are public in OH, so I look them up. When my daughter who is now 16 was in kindergarten, her teacher made $85,800. So 11 years ago. And I'm not in an affluent area/school district, even. Not too shabby.