The 2020-21 Spending Plan: Pensions

Oct 12, 2020 - Instead, these payments provide districts with greater relief in the 2020 ‑21 and 2021 ‑22 fiscal years, with the trade-off of no longer providing districts with long-term relief. Figure  1 lays out this change between the 2019 and 2020 budgets in the state ’s plan to use the $3.15  billion for districts.
https://lao.ca.gov/Publications/Report/4279

A Review of the CalSTRS Funding Plan: Treatment of Teacher Contributions Also Increase District Unfunded Liabilities

Feb 2, 2016 - We note that district contributions are fixed in law through 2020-21, making this a longer-term issue for districts. District Share of Unfunded Liability Has Increased From $47B to $58B. When the Legislature passed the CalSTRS funding plan, administration documents characterized the cost sharing as follows: districts would pay $47 billion, the state would pay $20 billion, and teachers would pay $8 billion.
https://lao.ca.gov/Publications/Report/3335

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

Feb 2, 2016 - We also note that the increase in the district share of CalSTRS ’ unfunded liabilities will not affect district costs until the early 2020s. As We Initially Understood Plan, Responsibility for CalSTRS Would Not Have Shifted to Districts.
https://lao.ca.gov/Publications/Report/3334

A Review of the CalSTRS Funding Plan: Recent Policy Change Increases District Rates

Feb 2, 2016 - Below, we describe how a recent CalSTRS policy change increases projected district rates under many scenarios. We note that district contribution rates are fixed in law through 2020-21, making this a longer-term issue for districts.
https://lao.ca.gov/Publications/Report/3338

A Review of the CalSTRS Funding Plan: CalSTRS Funding Plan Relies on Abstract Calculation

Feb 2, 2016 - Because teachers and districts contribute a fixed percentage of payroll, a different choice to assume that teachers would have earned higher salaries would have resulted in more teacher and district contributions to CalSTRS.
https://lao.ca.gov/Publications/Report/3333

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

Feb 2, 2016 - District Responsibility for CalSTRS Relatively Certain. As the figure indicates, the district share of the unfunded liability will be more stable. In addition, the law sets a floor and ceiling for district rates —8.25 percent and 20.25 percent, respectively.
https://lao.ca.gov/Publications/Report/3336

CalSTRS Funding: An Update

May 5, 2017 - Chapter  47 of 2014 (AB 1469, Bonta) increases contributions to CalSTRS made by the state, school and community college districts (referred to as districts in this report), and teachers. The plan aims to fully fund CalSTRS by the mid ‑2040s.
https://lao.ca.gov/Publications/Report/3662

A Review of the CalSTRS Funding Plan: Conclusion

Feb 2, 2016 - As implemented, districts would be largely insulated from large unfunded liabilities under these bad investment scenarios. While there are pros and cons to the implementation —both from the perspective of the state and districts —we are unsure that these are the outcomes the Legislature intended when it passed the CalSTRS funding plan into law.
https://lao.ca.gov/Publications/Report/3339

The 2019-20 Budget: Overview of the Governor's Budget

Jan 14, 2019 - Specifically, the funds would reduce districts ’ CalSTRS rates in 2019 ‑20 and 2020 ‑ 21 —freeing up resources for other parts of districts ’ operating budgets. Though district pension costs typically are covered using Proposition  98 General Fund, the Governor proposes using non ‑Proposition  98 General Fund for this proposal.
https://lao.ca.gov/Publications/Report/3916

A Review of the CalSTRS Funding Plan: Background

Feb 2, 2016 - The Governor ’s May 2014 revised budget proposed a plan to fully fund CalSTRS in about 30 years by increasing contributions from the state, districts, and teachers. The final 2014-15 budget package adopted the Governor ’s proposal, with some minor modifications.
https://lao.ca.gov/Publications/Report/3332