EdBudget Figures
Related Figures
- Proposition 98 Funding by Segment and Source
- Tracking Changes in the Proposition 98 Minimum Guarantee
- Proposition 98 Key Inputs and Outcomes Under Governor's Budget
- Governor's Budget Contains $17.7 Billion in Proposition 98 Spending Proposals
- 2022-23 Changes in Proposition 98 Spending
- Districts' Pension Contribution Rates and Amounts
January 2022
Proposition 98 Overview
Contributions to CalSTRS
(In Billions)
| 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Contribution Rates | |||||
| Employersa | 16.9% | 19.1% | 19.1% | 19.1% | 19.1% |
| Stateb | 10.8% | 10.8% | 10.8% | 10.8% | 10.8% |
| Teachers (pre-PEPRA) | 10.3% | 10.3% | 10.3% | 10.3% | 10.3% |
| Teachers (PEPRA) | 10.2% | 10.2% | 10.2% | 10.2% | 10.2% |
| Contribution Amounts | |||||
| Required Contributions | |||||
| Employers | $5.9 | $6.7 | $6.9 | $7.1 | $7.4 |
| State | 3.7 | 3.7 | 3.8 | 4.0 | 4.1 |
| Teachers | 3.6 | 3.6 | 3.7 | 3.8 | 4. |
| Subtotals | ($13.1) | ($13.9) | ($14.4) | ($14.9) | ($15.5) |
| Additional Contributions | |||||
| Additional state contributionsc | $0.6 | - | - | - | - |
| Additional contribution on behalf of employersd | 0.8 | - | - | - | - |
| Subtotals | ($1.3) | - | - | - | - |
| Totals | $14.5 | $13.9 | $14.4 | $14.9 | $15.5 |
| Notes: | |||||
| This table displays contribution rate estimates used for budgeting purposes for 2022-23 through 2025-26, but the state's actual rate may vary significantly in the out years. Pursuant to current law, if the state's share of unfunded actuarial obligation is eliminated, the state's Defined Benefit program contribution rate will decrease to the base rate of 2.017 percent. Based on 2020-21 investment returns, CalSTRS actuaries projected the state's share would be eliminated effective fiscal year 2024-25--meaning the state's contribution rate beginning that year would be 2.017 percent. However, the state's actual share of unfunded actuarial obligation and corresponding contribution rate will depend on investment returns and other factors over the next few years. | |||||
| a Reflects effective rates for school districts and community college districts. For 2021-22, districts' rate is offset by contributions from the state made on their behalf, equivalent to 2.18 percent of payroll. | |||||
| b The rates shown include the state's required contribution to the Supplemental Benefits Maintenance Account. | |||||
| c Includes one-time General Fund payment of $173 million in 2021-22, to offset the state's budget action in 2020-21 to hold the state's contribution rate flat. Also includes state supplemental payment for paying down unfunded actuarial obligation, using $410 million Proposition 2 funds. | |||||
| d Payment made by the state on districts' behalf. | |||||
| CalSTRS = California State Teachers' Retirement System. PEPRA = Public Employees' Pension Reform Act. | |||||