A Review of the CalSTRS Funding Plan: Theoretical Investment Gains Have Shifted Unfunded Liabilities to Districts

Feb 2, 2016 - These recent developments illustrate the counterintuitive results of the odd calculation central to the CalSTRS funding plan. We note that the calculation will become even more complex next year, as CalSTRS will begin to calculate the size of a second theoretical investment portfolio that will be factore d into the district share of the unfunded liability.
https://lao.ca.gov/Publications/Report/3334

The 2016-17 Budget: Local Government Mandates--Reasonable Reimbursement Methodology

Mar 17, 2016 - Generally, SCO identifies claims to audit based on certain criteria, such as the size of the claim, the variance in claimed costs, and prior audit experience. When auditing a claim or RRM, the Controller reviews whether the local government ’s claim for reimbursement follows the Parameters and Guidelines set out by the CSM.
https://lao.ca.gov/Publications/Report/3395

CalSTRS Funding: An Update

May 5, 2017 - CalSTRS uses a “smoothing ” policy to reduce volatility in reported unfunded liabilities and contribution rates, such that only one ‑third of the variance is reflected this year. This means that only $2.4  billion of the difference is factored into the $21  billion increase in the unfunded liability, with the remainder of the difference deferred to future actuarial valuations.
https://lao.ca.gov/Publications/Report/3662

The 2021-22 Budget: The Fiscal Outlook for Schools and Community Colleges

Nov 18, 2020 - Although these increases might seem at odds with high levels of unemployment, they are consistent with the more stable employment picture for high ‑income workers, who account for a large share of state tax payments.
https://lao.ca.gov/Publications/Report/4298