LAO's Preferences: UC pension not top priority for Prop 2 funds and should submit proposal

In a report dealing with the higher ed portion of the governor's May Revise proposal, the Legislative Analyst's Office (LAO) suggests that the legislature may have better uses for Prop 2 (rainy day fund) monies than pension funding. It also indicates that if the money is to go to pensions, UC should submit a proposal to the legislature along with other state pension funds (CalPERS, CalSTRS). The LAO also notes that in cutting back pension benefits (via the $117,020), it is likely that other elements of compensation would have to be raised.

Apart from the pension issue, the LAO continues to want UC funding to depend on tangible measures such as enrollment. It doesn't like side deals with the governor based on his preferences. LAO, of course, ultimately represents the interest of the legislature and would prefer the legislative preferences be the basis of UC funding.

You can find LAO's discussion of the governor's higher ed May Revise budget at:
http://www.lao.ca.gov/reports/2015/budget/may-revision/higher-ed-051815.pdf
The UC portion is on pages 2-6. LAO's recommendations are on pages 5-6.