Under the new budgetproposed by Gov. Brown, the annual state payment to CalPERS drops from $3.5billion this year to $3.1 billion in the new fiscal year. The payment falls, at a time most pensioncosts are rising, because a $404 million payment to CalPERS for CaliforniaState University pensions is shifted from the state budget to CSU. The change is part of a proposal that could freezestate support for CSU and UC pensions. The nonpartisan Legislative Analyst’s Office said CSU would befaced with a potential burden “out of proportion” to its limited ability tocontrol future pension costs. “For thisreason, we recommend that the Legislature reject the governor’s approach,” theanalyst said in a report this month…
As prior posts have noted, the governor proposes to give uspermission to use the general allocation to UC to pay for pensions – which issomething UC can do with or without his permission. UCOP and the Regents seem to think it is goodpolitics 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 statewidepension plan.
A better approach would be to give the plan afrosty response:
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