Lawmakers just found more money for the teacher pension fund – a responsible step overall, though they took money out of the hides of local school districts, not teachers.
The pension fund for state teachers is under-funded by a staggering $74 billion. As reported in Calpensions, the new legislation more than doubles costs to school districts, community colleges and other employers, while merely inching up costs to teachers.
Teachers’ contributions go from 8 percent of pay to 10.25 percent — the smallest rate increase under the new law.
Your school district’s contribution spikes from 8.25 percent of payroll to 19.1 percent. Schools will have to cut all sort of student programs and services, and lean more heavily on you for donations.