Assembly Speaker John A. Pérez (D-Los Angeles) and Assembly Public Employees, Retirement and Social Security Committee Chair Rob Bonta (D-Alameda) today announced the Assembly's intent to address the California State Teachers' Retirement System (CalSTRS) funding liability this year, currently estimated to be $71 billion. Noting that delaying will only exacerbate the problem and that the economic recovery alone will not fully fund the liability, Speaker Pérez believes the solution will need to fall on all three sources: employers, employees, and the state.read more...
Gov. Jerry Brown's image as a responsible, penny-pinching steward of California's finances has been cemented in recent weeks because of his renewed call to pay off California's "wall of debt." But look behind that $24.9 billion wall and you'll see a $330 billion skyline of other liabilities threatening the state's financial health. It includes $80 billion needed to cover teachers' pensions and $64 billion to pay for state workers' health care in retirement -- two particularly troublesome liabilities because the state isn't even making the minimum payments on them.read more...