The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - Because Opportunity Zone investments can be made anywhere in the country, California ’s Opportunity Zones are competing with zones in other states for investment. Arguably, creating a state Opportunity Zone benefit could help draw investment to California from other states by making California Opportunity Zone investment more financially attractive to investors.
https://lao.ca.gov/Publications/Report/4038

The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Investment Returns. Under the California Constitution, the CalPERS Board has plenary authority and fiduciary responsibility to invest the pension system ’s assets. The returns on these invested assets constitute the largest funding source for the system.
https://lao.ca.gov/Publications/Report/4887

Fiscal Outlook Addendum: CalPERS

Nov 18, 2015 - In future decades, however, the lower-risk investment profile could reduce the severity of some investment losses and the contribution spikes that otherwise would result, thereby benefiting public budgets.
https://lao.ca.gov/Publications/Report/3308

The 2020-21 Budget: Proposition 2 Debt Payment Proposals

Mar 10, 2020 - (If the system exceeded its investment target in a subsequent year the unfunded liability could be reduced or eliminated.) Using Proposition   2 t o make up for these investment losses would keep the plan on track.
https://lao.ca.gov/Publications/Report/4196

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - The State Treasurer ’s Office manages the PMIA, generally investing the money in low ‑risk instruments with short ‑term maturity schedules. In February 2018, the average return on these investments was 1. 4  p ercent.
https://lao.ca.gov/Publications/Report/3797

Perspectives on the Economy and Demographics 2003-04 [Publication Details]

Feb 19, 2003 - Perspectives on the Economy and Demographics 2003-04 [Publication Details] Description: The United States and California economies continue to struggle in early 2003, due primarily to restrained hiring and investment pending by businesses.
https://lao.ca.gov/Publications/Detail/941

New Inflation Poses Not So New Budget Risk

Dec 15, 2022 - Higher interest rates disincentivize consumers from borrowing and —by raising the cost of capital —dissuades firms from borrowing to make new investments. Relatedly, higher interest rates also increase the return on safer investments, such as treasury bonds and savings deposits.
https://lao.ca.gov/Publications/Report/4653

The 2022-23 Budget: California’s Fiscal Outlook

Nov 17, 2021 - Based on current law, CalSTRS ’ 27.2 percent investment returns will have an outsized impact on the state ’s contribution rate. Specifically, CalSTRS actuaries project that the 2020 ‑21 investment return experience will fully eliminate the state ’s share of unfunded liabilities (currently around $31.5 billion) in a few years.
https://lao.ca.gov/Publications/Report/4472

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return. STO invests these funds in safe, short-term assets, like U.S.
https://lao.ca.gov/Publications/Report/3988

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan [Publication Details]

Apr 4, 2018 - The 2018-19 Budget: Repaying the CalPERS Borrowing Plan [Publication Details] The 2018-19 Budget: Repaying the CalPERS Borrowing Plan Format: HTML Description: The 2017-18 budget package authorized a plan to borrow $6 billion from the Pooled Money Investment Account—an account that is essentially the state’s checking account—to make a one-time supplemental payment to the California Public Employees' Retirement System.
https://lao.ca.gov/Publications/Detail/3797