Excerpt from calpensions.com 2-21-12
Under the new budget proposed by Gov. Brown, the annual state payment to CalPERS drops from $3.5 billion this year to $3.1 billion in the new fiscal year. The payment falls, at a time most pension costs are rising, because a $404 million payment to CalPERS for California State University pensions is shifted from the state budget to CSU. The change is part of a proposal that could freeze state support for CSU and UC pensions. The nonpartisan Legislative Analyst’s Office said CSU would be faced with a potential burden “out of proportion” to its limited ability to control future pension costs. “For this reason, we recommend that the Legislature reject the governor’s approach,” the analyst said in a report this month…
As prior posts have noted, the governor proposes to give us permission to use the general allocation to UC to pay for pensions – which is something UC can do with or without his permission. UCOP and the Regents seem to think it is good politics to view his proposal as some kind of a breakthrough – which it isn’t, particularly because the governor still proposes to sweep UC into his statewide pension plan.
A better approach would be to give the plan a frosty response:
[youtube=http://www.youtube.com/watch?v=pbhByOf6dnY&w=320&h=195]