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February 2, 2016 - This post is the second of a series looking at the implementation of the CalSTRS funding plan. In this post, we critique the complex calculation central to the funding plan.
January 12, 2016 - As part of the Supplemental Report of the 2015-16 Budget Package, the Legislature directed our office to issue a report evaluating defined contribution retirement benefits provided to public employees and the effect the Great Recession had on these benefits.
September 9, 2015 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 10 (Scientists). Bargaining Unit 10 is represented by the California Association of Professional Scientists (CAPS). This review is pursuant to Section 19829.5 of the Government Code.
September 4, 2015 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 9 (Professional Engineers). Bargaining Unit 9 is represented by Professional Engineers in California Government. This review is pursuant to Section 19829.5 of the Government Code.
June 19, 2015 - We have provided information on the major provisions of the budget plan passed by the Legislature on Friday, June 19. (It does not reflect potential gubernatorial vetoes.) We will provide a more comprehensive summary of the budget plan in our annual California Spending Plan later this summer.
May 15, 2015 - As part of the 2015-16 May Revision, the Governor proposes to establish a new process for reviewing changes to labor contracts. This analysis reviews the administration’s proposal and recommends that the Legislature adopt it with modifications to ensure legislative and public oversight.
March 16, 2015 - Health benefits for retired state employees constitute a large and growing cost for the State of California. The state’s retiree health benefit program constitutes the state’s last major liability that needs a funding plan. As part of his 2015-16 budget, the Governor proposes one approach to address retiree health liabilities through the collective bargaining process. In our report, we recommend that the policy committees of the Legislature hold hearings to discuss the Governor’s proposal—as well as other options to address retiree health liabilities—with actuaries, employee groups, policy experts, and the public. We acknowledge that a delay in implementing a funding plan might make some elements of a funding plan more expensive; however, we think it is more important to get the plan right that to quickly set up a plan that can be implemented in 2015-16.
March 13, 2015 - To address the Governor's concerns with current Cal/OSHA enforcement, his budget proposes additional Cal/OSHA positions. We recommend that the Legislature approve the requested level of new positions. However, we emphasize that targeting planned inspections to those business establishments with the highest likelihood of improved compliance is critical to using planned inspection resources cost-effectively, and recommend that DIR report at legislative hearings on ongoing efforts to improve inspection targeting.
August 25, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 13 (Stationary Engineers). Bargaining Unit 13 is represented by the International Union of Operating Engineers, Local 39. This review is pursuant to Section 19829.5 of the Government Code.
August 22, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 10 (Scientists). Bargaining Unit 10 is represented by the California Association of Professional Scientists. This review is pursuant to Section 19829.5 of the Government Code.
August 22, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 2 (Attorneys). Bargaining Unit 2 is represented by California Attorneys, Administrative Law Judges, and Hearing Officers in State Employment (CASE). This review is pursuant to Section 19829.5 of the Government Code.
May 29, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 10 (Scientists). Bargaining Unit 10 is represented by the California Association of Professional Scientists. If adopted, the MOU would modestly increase state costs beginning in 2014-15.
May 19, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 13 (Stationary Engineers). Bargaining Unit 13 is represented by the International Union of Operating Engineers. If adopted, the MOU would modestly increase state costs beginning in 2014-15.
May 7, 2014 - This report categorizes and provides information about $340 billion in California's key retirement, infrastructure, and budgetary liabilities. In addition, this report provides a framework for the Legislature to consider in prioritizing repayment of these liabilities and makes recommendations on which liabilities to pay down first and how the state could address such costs in the future. In general, we suggest that the Legislature prioritize actions to pay down those liabilities (1) with relatively high interest rates or (2) that result in benefits for groups or entities other than the state government. Due to its massive unfunded liability and relatively high growth rate, we recommend that the Legislature make a full funding plan for the California State Teachers' Retirement System a top priority in addressing the state's key liabilities.