May 18 2022
SB 1343 (Leyva) would require all new charter schools (established after January 1, 2023) to participate in CalPERS and CalSTRS.
While many charter schools have opted into these systems, many charter schools have not over concerns surrounding the huge unfunded debt (liability) of CalPERS. Many newer charter schools are able to establish more cost-effective arrangements outside of these costly systems. To resolve this debt, CalPERS more than doubled employer contribution rates.
This bill would also allow county offices of education to capture up to three months’ worth of retirement contributions in advance, increasing cash flow pressures.
California’s public charter schools already operate on razor-thin margins (because they receive fewer state dollars than their traditional school district counterparts) and can’t afford to direct scarce funds away from student learning to prop up a debt-ridden pension fund.
We encourage you to take ONE MINUTE to send an email to your State Senator and urge them to vote "no" on SB 1343.