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

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

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 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Last year ’s budget allocated $250  million for public infrastructure investments in the City of Fresno. This budget delays $200  million until 2026-27. Makes Cuts to the California Jobs First Program.
https://lao.ca.gov/Publications/Report/4934/governors-office-of-emergency-services

The 2024-25 California Spending Plan: Other Provisions

Oct 2, 2024 - Last year ’s budget allocated $250  million for public infrastructure investments in the City of Fresno. This budget delays $200  million until 2026-27. Makes Cuts to the California Jobs First Program.
https://lao.ca.gov/Publications/Report/4934

The 2022-23 Budget: Overview of the Spending Plan

Oct 12, 2022 - The spending plan reflects a number of major investments in behavioral health. These investments include roughly $2  billion in General Fund expenditures in 2022 ‑23 approved last year as part of the multiyear Children and Youth Behavioral Health Initiative.
https://lao.ca.gov/Publications/Report/4616

The 2023-24 Budget: Overview of the Spending Plan (Final Version)

Oct 16, 2023 - Appendix 4, Figure 7 Remaining Large One ‑Time and Temporary Augmentations From the 2021 ‑22 and 2022 ‑23 Budget Packages: Resources and Environment General Fund (In Millions) Emergency surge (helitanker contract component) $45 Clean Energy Reliability Investment Plan (SB 846) 100 Diablo Canyon land use planning — Coastal resilience SB 1 implementation 55 Clean Cars 4 All and
https://lao.ca.gov/Publications/Report/4788/4

The 2022-23 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 17, 2021 - Although CalSTRS recently reported investment returns far above its long ‑term target, these returns are unlikely to reduce required district contributions. Under the funding plan the Legislature adopted in 2013 ‑14, the state General Fund is responsible for most of the volatility in CalSTRS ’ investment returns.
https://lao.ca.gov/Publications/Report/4473