Something's Missing

 

The Legislative Analyst's Office (LAO) yesterday put out a review of budgetary issues regarding state pensions. It refers to CalPERS (which among other entities covers CSU) and CalSTRS, but not UCRP. This omission is in keeping with the LAO's view that UCRP is the responsibility of the Regents, and not the state. (Are the Regents supposed to finance it out of their own checkbooks?) If you go back into history, you will find that at one time UC was in the larger CalPERS program and that when a separate plan for UC was created, there never was any notion that thereafter the state had no responsibility. Indeed, during the budget crisis that Governor George Deukmejian inherited, the state didn't declare it had no responsibility. Instead it put a long-term IOU into UCRP to cover its contribution (and paid it off over time). Where's George when we need him?

You can see the LAO's document below. It is at:

https://lao.ca.gov/Publications/Report/4279