Under the new budget
proposed by Gov. Brown, the annual state payment to CalPERS drops from $3.5
billion this year to $3.1 billion in the new fiscal year. The payment falls, at a time most pension
costs are rising, because a $404 million payment to CalPERS for California
State University pensions is shifted from the state budget to CSU. The change is part of a proposal that could freeze
state support for CSU and UC pensions. The nonpartisan Legislative Analyst’s Office said CSU would be
faced with a potential burden “out of proportion” to its limited ability to
control future pension costs. “For this
reason, we recommend that the Legislature reject the governor’s approach,” the
analyst said in a report this month…
As prior posts have noted, the governor proposes to give us
permission to use the general allocation to UC to pay for pensions – which is
something UC can do with or without his permission. UCOP and the Regents seem to think it is good
politics to view his proposal as some kind of a breakthrough – which it isn’t,
particularly because the governor still proposes to sweep UC into his statewide
pension plan.
A better approach would be to give the plan a
frosty response:
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