Governor Brown Is Passing The Burden Of Increased Retirement Costs Down To Local School Districts - Leaving Very Little Funding For Anything Else

When voters passed Prop 30 in 2012 they were told that the money would go to students. That was a lie. 80% of Prop 30 K- 12 money went to employee salaries and benefits.
Source: http://trackprop30.ca.gov/K12State.aspx

Now the State wants school districts to foot the bill for unfunded employee pension costs. Under the Governor’s proposed budget plan Capistrano Unified School District STRS rates will increase from 8% in 2013-14 to 19.1% in 2020-21. PERS rates will increase from 11.442% in 2013-14 to 20.4% in 2020-21. When fully implemented the cost of employee retirement benefits will represent 9.6% of the Districts total projected budget for 2021. Employee compensation expense (salaries, pensions and benefits) will be over 100% of the Districts projected budget by 2021.

Taxpayers will be asked to make Prop 30 taxes permanent if they want to pay for any student services beyond employee compensation expenses. The Governor is also proposing to allow local property tax owners greater flexibility in raising local property taxes to fund education.


Source:http://capousd.ca.schoolloop.com/file/1229223560406/1381823404810/1846641852458756580.pdfat page 11 of 15

Listen to Board Audio: http://cusd.capousd.org/cusdweb/boardaudio/1-28-15/01-28-15RegBdMtg.mp3at 37 minutesCapistrano Unified has $57 million in Unfunded Pension Liabilities... that is up from $50 million in 2011

Source:http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/4733164299538810046.pdfat page 5

Source:143http://capousd.ca.schoolloop.com/file/1229223560406/1218998864154/8880828758283900707.pdf2013-2014 Second Interim Report at page 135