The 2017-18 Budget: Initial Comments on the Governor’s May Revision

May 13, 2017 - The Governor ’s proposes borrowing $6 billion from the state investment pool —an account that invests money from the state and local governments —and use this money to pay down a small portion of state pension liabilities.
https://lao.ca.gov/Publications/Report/3669

CalSTRS Funding Update

Jul 19, 2018 - By the latter years of the Great Recessi on, this unfunded liability had grown significantly and CalSTRS was estimating that it would run out of money by the mid-2040s —a short time horizon for a pension system.
https://lao.ca.gov/Publications/Report/3873

A Review of the CalSTRS Funding Plan: Conclusion

Feb 2, 2016 - No matter what the Legislature decides, tackling this very difficult issue will continue to require billions of dollars in contribution rates above what the state, districts, and teachers will make to CalSTRS this year.
https://lao.ca.gov/Publications/Report/3339

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - Investors are borrowing large sums to buy stocks, and households are more invested in the stock market than at any time in at least 70 years. Historically, these signs have preceded stock market downturns.
https://lao.ca.gov/Publications/Report/5110

The 2024-25 Budget: The Governor’s Proposition 98 Funding Maneuver

Feb 15, 2024 - That is, on a daily basis, the state ’s tax agencies collect revenues, the State Controller pays the state ’s bills, and the State Treasurer invests any of the state ’s cash that is currently unused.
https://lao.ca.gov/Publications/Report/4840

Update on School District Retiree Health Benefits

Sep 25, 2017 - More specifically, it is the amount of money that, if set aside and invested today, would be sufficient to cover the future cost of retiree health benefits already earned by current and former employees.
https://lao.ca.gov/Publications/Report/3704

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

Update on the Progress of the CalSTRS Funding Plan

Nov 18, 2021 - We recommend making these changes before the impacts of the 27.2 percent investment return are phased in. By making these changes soon, should the state ’s UAO increase, CalSTRS would be able to adjust rates more swiftly, thereby reducing further increases in unfunded liabilities.
https://lao.ca.gov/Publications/Report/4475

A Review of the CalSTRS Funding Plan: Funding Plan May Not Meet Principle of “Shared Responsibility”

Feb 2, 2016 - Over the long term, the funding plan makes it possible for state contributions to be much higher than this prior law cap if, for example, investments underperform assumptions. Essentially, whether the state incurs incremental costs under the funding plan—that is, whether the state shares in the responsibility of addressing CalSTRS’ unfunded liabilities—depends upon future investment experience.
https://lao.ca.gov/Publications/Report/3337

A Review of the CalSTRS Funding Plan: State’s Future Responsibility for CalSTRS Uncertain

Feb 2, 2016 - Below, we describe how the state’s share of CalSTRS’ unfunded liabilities will be more sensitive to investment gains and losses than the district share. This makes the state’s future responsibility for CalSTRS relatively uncertain.
https://lao.ca.gov/Publications/Report/3336