Could Prop 30 Money Go to Pension Fund?
Samantha Oltman | April 4, 2013
The California Teachers Pension Fund (CalSTRS), the largest fund of its kind in the United States, is facing a $70 billion budget crisis, and there are growing concerns that Prop 30 money could be diverted from local schools and into the pension system.
A Huffington Post article on Wednesday pointed to a recent report from the California Legislative Analyst’s Office, which warned that the teachers pension fund is $73 billion and counting in debt, and if nothing is done to intervene, the fund will disappear completely in 30 years. A recent Bloomberg op-ed speculated that some of Prop 30’s $6.8 billion annual funds could be funneled away from schools and used to repair the teachers pension system.