Comments on: Gov. Newsom’s budget shows pension fixes failed

By: Ted Steele CPA

Ted Steele CPA — Sun, 10 Feb 2019 19:01:25 +0000

Pepra effects won’t kick in for a few more years— relax sleepy doomer

By: Sean

Sean — Fri, 25 Jan 2019 16:08:51 +0000

In reply to Sean.

Today’s LA Times has an article on the strike resolution and hurdles LAUSD faces going forward.
https://www.latimes.com/local/lanow/la-me-edu-lausd-charter-analysis-20190125-story.html?int=lat_digitaladshouse_bx-modal_acquisition-subscriber_ngux_display-ad-interstitial_bx-bonus-story_______

By: Sean

Sean — Thu, 24 Jan 2019 21:32:10 +0000

Local school districts and CalSTRS have to overcome several very significant factors to maintain liquidity.
1. The number of school aged children peaked in 2006 and has been in slow decline since. Expensive jurisdictions like LA county and Santa Clara County have seen a 13% decline in school aged population over the last 12 years. State funding provided to local jurisdictions is based on head count.
2. While the pool of students has declined, charter schools have siphoned off another 10%.
3. Pension reform in 2012 grandfathered every employee into the old pension system meaning it will take 30 years for savings to materialize. Much of the extra money going to CalSTRS from pension reform comes from local school districts (~70%) and was back-loaded to be fully implemented in the next 3 years.
4. Very generous healthcare benefits (particularly in LA County) rise much faster than inflation and are on a pay as you go basis.
5. Added costs for retiree pensions and healthcare means less of the money allocated per student ends up in the classroom giving a competitive advantage to non-union charters.

By: Fletch'

Fletch' — Thu, 24 Jan 2019 15:26:17 +0000

It’s time that the state drop its defined benefit plans and convert to defined contribution plans