History of IDEA
Jeannie Oakes, Founder and Former Director
Youth Voice in School Finance
NEW REPORT: Los Angeles' road to A-G for all
Without Dollars and Sense Powerpoint
Past Educational Opportunity Reports
Brown’s CalSTRS problem
- 04-04-2011
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Blog by John Fensterwald/Educated Guess
Gov. Jerry Brown last week made a down payment on pension reform in the form of seven specific recommendations to slow the growth in pensions for public employees, including teachers. It’s the obvious steps to curb abuse, like banning retroactive pension increases, the purchase of additional pension credits, and the spiking of income the final year to boost pension payouts. But the release of CalSTRS’ annual report and the Legislative Analyst Office’s readable summary of it last week shows why Brown is taking his time on dealing with the bigger issue: CalSTRS’ large unfunded liability. The remedy for straightening out the retirement system will be painful for taxpayers and for future teachers and administrators. The reason, the LAO said, is unequivocal: “CalSTRS’ current fiscal model is unsustainable. … There is no realistic way for CalSTRS to ‘grow its way’ out of this problem through favorable investment returns over the long term, as the system’s own officials have acknowledged clearly.” (more...)
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