The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Proposition 2 Proposition   2 Contains Annual Debt Payment Requirement. Proposition  2 created new rules regarding: (1)  deposits into the state ’s rainy ‑day fund and (2)  accelerating payments toward certain eligible debts.
https://lao.ca.gov/Publications/Report/4887

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

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

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - Figure 1 Administration ’s Estimated Fiscal Effect of Proposed Unit 12 Agreement (In Millions) Extension of Terms to Excluded Employees b ‑2.3 $18.4 $52.0 a State General Fund retiree health prefunding costs are paid using funds required to be expended under Proposition 2 (2014). b This is an indirect cost that would result from the agreement being ratified.
https://lao.ca.gov/Publications/Report/5060

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - However, the state regularly appropriates SPPs to satisfy General Fund constitutional debt repayments required under Proposition 2 (2014) to the four pension plans other than Highway Patrol. Highway Patrol is excluded from these Proposition 2 SPPs because Highway Patrol is funded entirely by non-General Fund state funds.
https://lao.ca.gov/Publications/Report/4920

The 2022-23 Budget: Analysis of the Care Economy Workforce Development Package

Mar 10, 2022 - In 2021 ‑22, the state is providing $566  million ongoing Proposition  98 General Fund for AEP. Statute provides this level of funding regardless of the number of students served or the type of instruction provided.
https://lao.ca.gov/Publications/Report/4572

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, (2) eliminate the
https://lao.ca.gov/Publications/Report/4888

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - We note that the 2021 ‑22 proposed payment is in line with our previous recommendations for allocating Proposition  2 debt payments. More information about our previous recommendations can be found in our March  2020 Proposition  2 analysis here . 2021 ‑22 Includes a Proposal to Make One ‑Time State General Fund Payment.
https://lao.ca.gov/Publications/Report/4400

The 2021-22 May Revision: Golden State Stimulus 2

May 18, 2021 - As the Legislature will make numerous budgetary choices that could decrease or increase the extent to which the state has excess revenues, this analysis presents alternatives for providing cash assistance, but does not consider the extent to which the alternatives would be considered tax rebates under the requirements of Proposition 4 (1979).
https://lao.ca.gov/Publications/Report/4435

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - (In addition, it is the state ’s policy to apply the Proposition 2 debt repayments towards the CalPERS unfunded liabilities.) As we describe in The 2020‑21 Spending Plan: Pensions , the 2019‑20 budget plan included a $2.5 billion supplemental pension payment to CalPERS to reduce the state’s long-term unfunded liabilities; however, the 2020‑21 budget repurposed this supplemental
https://lao.ca.gov/Publications/Report/4800