A Bloomberg article from yesterday (linked below) reports that in the fourth quarter of 2018, the stock market lost 7.5% and public pensions have lost 4.9% since the beginning of the fiscal year on July 1.
Link to the Bloomberg article:
Another article by Randy Diamond, CalSTRS 2018 Calendar Year Results Are in Negative Territory, sounds the alarm even more, stating that CalSTRS shows an investment return of -3.2% in 2018 and CalPERS did even worse, at -3.9%.
“CalSTRS is only 62.6% funded with an unfunded liability of $107.3 billion.”
That statistic explains why shockwaves are being felt throughout school districts in Marin County and the entire state. Teachers are striking for higher wages, with great public support, while the number of retirees keeps growing.
The only solution now rests in the hands of the California State Supreme Court. There must be some drastic reform tools made available to prevent a growing and ongoing disaster.
As things now stand, only a booming stock market and/or higher taxes will be able to sustain the pension obligations that threaten schools and all government agencies.
Both articles are posted on the CSPP Facebook page for your comments.