FRESNO, Calif. (KMJ) — California public school districts are faced with having to reallocate billions of dollars from the classroom, to cover retirement promises.
According to state estimates, contributions to the California Public Employees’ Retirement System are expected double, within the next six years.
That’s now leading to fears of larger class sizes, pay freezes, and cuts to extra extra curricular activities, and in extreme cases, the possibility of a state takeover.
California’s pension woes have been acknowledged for several years.
However, next year the rising expenses are expected to consume more than one-third of the proposed increases to the education budget.
CalPERS has also lowered its expected return on investments, following consecutive years of disappointment.
