When a one-time funding opportunity comes along, how can districts make the most of it?
For California community college districts navigating rising retirement costs and ongoing budget pressures, these resources can provide an opportunity to build lasting financial value.
That’s exactly what San José–Evergreen Community College District set out to do.
After receiving Employee Retention Tax Credit (ERTC) funds, the District took a forward-thinking approach, investing those resources toward future pension obligations through the PARS/CCLC Pension Rate Stabilization Program (PRSP).
“The Employee Retention Tax Credit created a rare opportunity to make a meaningful investment in our district’s financial future. Working with PARS/CCLC, we directed these one-time funds into a pension prefunding trust, helping to mitigate future pension cost increases while enhancing long-term budget stability. It was a prudent, forward-thinking use of non-recurring revenue that will provide benefits for years to come.”
Edwin Chandrasekar
Vice Chancellor, Admin Services, SJECCD
Making Today’s Resources Work for Tomorrow
San José–Evergreen’s experience highlights an important opportunity: One-time funding doesn’t have to deliver one-time benefits.
Whether through ERTC proceeds, excess reserves, or other available resources, districts can use the PARS/CCLC PRSP to build dedicated assets for future pension obligations, pursue long-term investment growth, and help manage the impact of future CalPERS and CalSTRS contribution rate increases.
Could Your District Benefit from a Similar Approach?
Connect with our team to explore how the Pension Rate Stabilization Program can help your district put available resources to work and prepare for the future.