“Total district pension contributions are expected to increase by about $1 billion (in 2017-18),” the Legislative Analyst’s Office calculated. Local school officials complained that Brown’s initial budget increased their financing by just $744 million, meaning they would have to divert operating funds to pay for pensions. Brown’s revised budget boosted school money by another $1-plus billion, thanks to higher tax revenues, but a big chunk wouldn’t be paid until 2019, which could still force schools to cut other spending next year to pay for pensions. All of these burdens will grow. Not only are the state’s pension costs scheduled to nearly double by 2023-24 – once again, assuming CalPERS hits its earnings targets – but CalSTRS’ bite on school districts is projected to rise from $4.7 billion in 2017-18 to $7 billion by 2020-21, plus another $2.5 billion for CalPERS.
View Article