The UC Board of Regents’ decision to increase tuition over the next five years brought a swift – and negative – reaction from Sacramento, signaling a fiscal showdown when the state budget is unveiled in January. “To UC students and their families, please know that the fight over this nearly 28% fee increase is not over,” said Assembly Speaker Toni Atkins.
Merced County pensions may have the lowest funding level of any public pension system in California, a shortfall officials attribute to a big retroactive pension increase for all county employees a decade ago and faulty actuarial work. In the latest annual public pension report from the state controller’s office, Merced County stands out with the lowest level of funding in the last reported year, 54.7 percent in 2010-11.
The San Ardo oil field, Monterey. Photo: Loco Steve, WikimediaMost Californians support the state’s landmark law mandating the reduction of greenhouse gas emissions, according to a statewide survey released today. More specifically, strong majorities support two aspects of the state’s efforts to address global warming: a requirement that oil companies produce cleaner transportation fuels and the goal that a third of California’s electricity come from renewable energy sources. But residents’ support declines significantly if these two efforts lead to higher gas prices or electricity bills.
Lobby of the CalSTRS building in West Sacramento. (Photo: Paul Houseberg)Gov. Brown has made a long-delayed proposal to get CalSTRS to full funding over the next three decades, giving the biggest rate hike to schools and smaller increases to the state and teachers. The nation’s largest teacher pension fund, which received $5.8 billion from the three sources last fiscal year, needs an additional contribution of about $4.2 billion a year to project full funding in 30 years.
The total spending increase needed to get CalSTRS, brought low by mismanagement, back to full funding may be the biggest-dollar scenarios ever presented to a California legislative committee. Legislators were told last week an additional $181.7 billion would be needed for full funding in 20 years. If payments are spread out to ease the budget bite, the additional amount needed to reach full funding in 60 years is a staggering $618 billion.
OPINION: The Congressional Budget Office report also shows that under the hike to $9 per hour, 300,000 people would be lifted out of poverty. However, another estimated 100,000 to 200,000 people would lose their jobs. If the wage increases to $10.10 per hour the number of people being raised out of poverty would rise to 900,000 while 500,000 people would lose their jobs.
Getting CalSTRS back to full funding, if rates are steadily increased over the next half dozen years, would take an annual increase reaching more than $5 billion a year by 2020 — about what the state general fund currently spends on UC and CSU combined. (Photo: CalSTRS lobby, Paul Housberg)
California, home to the largest number of older adults in the nation, would become the third state after Colorado and Montana to prohibit using sex as a means to differentiate the prices in long-term care policies — if the measure ultimately becomes law. “I term out in November… so this is my first and last opportunity — as an Assembly member anyway — to take this issue up,” said Assemblywoman Mariko Yamada, D-Davis. Her bill is AB 1553, introduced Jan. 27.
To cover the cost of retirees living longer, the CalPERS board next month is expected to approve the third rate hike in the last two years, phasing in the increase to soften the blow on state and local governments. The new rate hike would not begin until fiscal 2016-17 to allow employers time to plan after receiving rate projections next year.
Property theft in California increased in the first year of correctional realignment, according to a new report by the nonpartisan Public Policy Institute of California highlighting the policy’s possible effect on future crime rates. Under realignment, the state shifted responsibilities to the counties — including the incarceration of some state prisoners — and gave them money to cover the costs.