Jack Ehnes with the California State Teachers' Retirement System or CalSTRS says if the retirement system is to be fully-funded within 30 years, all of the groups and the State of California must increase contributions by more than $4 billion-per-year.
"Recessions took such a sizeable bite out of the assets of the system or any system like that, you must increase the contributions and usually quickly to change that path."
"Having a secure retirement is of paramount value along with the piece of mind it will bring to our current and future members and retirees," Baker says.
Baker and a representative of the California School Administrators spoke at the first in a series of Assembly hearings at the California State Capitol Wednesday.
Based on the current value of the fund's assets, Governor Jerry Brown says the shortfall is actually $80 billion.
Together, employers, employees, and state contributions make up about 40-percent of the Cal STRS pension fund. Investments make up the rest.
Cal STRS will develop funding scenarios for all contributors to add $4.2 billion to the fund this year with an increase every year after that.
Number Of 'Significantly Disengaged' Kids At Sacramento Public Schools Has Skyrocketed During The PandemicFebruary 15, 2021
Before the pandemic closed schools, only a few dozen kids at Sacramento City Unified schools missed three days a week of school or more. Now, that number is almost a thousand.
Schools would only qualify in counties with lower infection rates. Kindergarten through sixth grade is prioritized in the governor’s $2-billion plan, which would need the Legislature’s approval.
The Folsom Cordova Unified School Board voted for its students to return to classrooms part time. It comes in anticipation of schools in the county getting the greenlight to reopen after moving into the red tier of California’s reopening guidelines.
Without clear guidance from the state, coronavirus testing remains a contentious and costly issue as more school districts inch toward reopening.
A closely watched report commissioned by Gov. Gavin Newsom calls for more local discretion and tighter regulation of charter schools.
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