California Governor Jerry Brown signed the 2014-15 state budget today, which focuses on debt, teachers’ retirement, the state’s rainy day fund and California’s youth.
Included in the budget is the beginning of a plan for the state, school districts and teachers to build up the State Teachers’ Retirement System (SRTS). This year the three will combine to contribute $276 million, with steps for growth to $5 billion annually in place.
The plan is projected to eliminate unfunded liability in the system by 2046.
For the first time since 2007, the budget will make a deposit into the state’s rainy day fund. A total of $1.6 billion was put into the fund, with plans to grow the fund to $4.6 billion by 2017-18. The projected growth is reliant on voter approval of a measure—passed by the legislature—on the November ballot.
In addition, the budget will reduce the “Wall of Debt” by over $10 billion. The budget also makes significant contributions to education, including providing over $10 billion to high schools thanks to Proposition 98. Health care and climate change were also key parts of putting the new budget together.
Details on the budget can be found at www.ebudget.ca.gov.
Ruben Dominguez filed this report.