A Stanford University study commissioned by Gov. Arnold Schwarzenegger says California's public pension funds are underfunded by as much as $500 billion.
The estimated shortfall applies to the retirement systems for California state and local government workers, teachers and University of California employees.
Analysts at those funds estimated their unfunded liabilities to be much lower. But a Schwarzenegger economist says they have been underreporting the gap between revenue and obligations.
In a statement, the Republican governor says the study, released Monday, reaffirms the need to address the state's staggering pension debt.
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