The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - As we discuss in greater detail below, the voters approved Proposition  2 in 2014 to establish a constitutional requirement that, among other requirements, requires the state to make specified levels of debt payments, including towards pension unfunded liabilities.
https://lao.ca.gov/Publications/Report/4887

The 2020-21 Spending Plan: Pensions

Oct 12, 2020 - In addition, the Spending Plan reduces future General Fund costs by using Proposition  2 (2014) required debt payments, rather than the General Fund, to pay for a $243  million unfunded liability pension payment for the California Highway Patrol.
https://lao.ca.gov/Publications/Report/4279

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - Consistent with the claims trends seen recently, most of these claims will receive 100  percent disability benefits, despite the median major injury receiving a permanent disability rating of 47  percent in the standard workers ’ compensation system.
https://lao.ca.gov/Publications/Report/5062

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - (The General Fund share of these costs are paid from the state ’s required annual debt payments under Proposition  2 [2014].) The reduced amount of money invested in the trust fund will result in higher unfunded liabilities in the long-run.
https://lao.ca.gov/Publications/Report/5064

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

Feb 2, 2016 - 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

MOU Fiscal Analysis: Bargaining Units 10 (Professional Scientists) and 18 (Psychiatric Technician)

Sep 9, 2025 - (The General Fund share of these costs are paid from the state ’s required annual debt payments under Proposition  2 [2014].) In addition, all but the agreement with Unit 6 (Corrections) also suspend the employee contribution.
https://lao.ca.gov/Publications/Report/5073

Unit 2 (Attorneys) MOU Analysis

Sep 12, 2019 - Administration ’s Fiscal Estimates Increased Annual Costs of $47  million Beginning 2020 ‑21. As Figure  1 shows, the administration assumes that the proposed agreement would increase annual state costs by $47  million beginning in 2020 ‑21.
https://lao.ca.gov/Publications/Report/4095

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

Feb 2, 2016 - When the Legislature passed the funding plan in 2014, we understood it to be a relatively simple approach. The total $74 billion unfunded liability would be divided up between school and community college districts ($47 billion), the state ($20 billion), and teachers ($8 billion).
https://lao.ca.gov/Publications/Report/3333

A Review of the CalSTRS Funding Plan: Conclusion

Feb 2, 2016 - Meanwhile, that calculation, coupled with CalSTRS ’ treatment of the higher teacher contributions required by the funding law, have increased the school and community college district share from $47 billion to $58 billion.
https://lao.ca.gov/Publications/Report/3339

The 2024-25 Budget: State Employee Compensation

Mar 21, 2024 - (For our analysis of issues related to pension payments under Proposition  2 [2014], see our report The 2024‑25 Budget: Proposition 2 Debt Payment Proposals .) Specifically, this analysis looks at the Governor’s 2024‑25 budget proposals to (1) use vacancy rates to identify one-time unallocated spending reductions across state departments,
https://lao.ca.gov/Publications/Report/4888