Governor Edmund G. Brown Jr. today signed a balanced, on-time state budget that pays down debt, shores up the teachers’ retirement system, builds a solid Rainy Day Fund and directs additional funding for local schools and health care. “This on-time budget provides for today and saves for the future,” said Governor Brown. “We’re paying off the state’s credit card, saving for the next rainy day and fixing the broken teachers’ retirement system.”
The budget includes a plan of shared responsibility among the state, school districts and teachers to shore up the State Teachers’ Retirement System (STRS). The first year’s contributions from all three entities total approximately $276 million, growing in subsequent years to more than $5 billion annually. This is projected to eliminate the unfunded liability in the system by 2046. The budget also directs $1.6 billion into the state Rainy Day Fund – the first deposit into the fund since 2007. The fund is expected to grow to $4.6 billion by 2017-18, if voters approve of the measure on the November ballot that was proposed by the Governor and passed by the Legislature.
When Governor Brown took office, the state faced a massive $26.6 billion budget deficit and estimated annual shortfalls …read more
Source: Fullerton Chamber of Commerce