C S B – 2014-15
If state revenues rise higher than anticipated in the Budget, the ﬁrst call on additional funds will be for further debt payments
— eliminating the remaining school deferrals ($1 billion from Proposition 98)
and local government mandate claims ($800 million).
As shown in Figure INT-02, the Budget plan would completely eliminate the Wall of Debt by 2017-18.Beyond the Wall of Debt, the state faces more than $300 billion in retirement, deferred maintenance, and other long-term liabilities.
As noted above, the Budget begins a multi-decade plan to eliminate the CalSTRS $74 billion unfunded liability.
In addition, the Budget contains a $688 million package to reduce its deferred maintenance on critical infrastructure.
If property taxes are higher than anticipated (and therefore offset state K-14 costs), up to an additional $200 million in deferred maintenance for state buildings, the University of California, and California State University will be provided.
Budget Plan Would Eliminate the Wall of Debt
(Dollars in Billions)
End of 2010-11
End of 2013-14
End of 2014-15
End of 2014-15 with triggers
End of 2017-18
Deferred payments to schools and community colleges$10.4$6.1$1.0$0.0$0.0Economic Recovery Bonds7.13.90.00.00.0Loans from Special Funds126.96.36.199.10.0Unpaid costs to local governments, schools and community colleges for state mandates188.8.131.52.40.0Underfunding of Proposition 983.02.41.81.80.0Borrowing from local governments (Proposition 1A)1.90.00.00.00.0Deferred Medi-Cal Costs184.108.40.206.20.0Deferral of state payroll costs from June to July 0.80.80.80.80.0Deferred payments to CalPERS0.50.40.40.40.0Borrowing from transportation funds (Proposition 42)0.40.20.10.10.0
As of 2011-12 May Revision
Based on 2013 Budget Act policies
As of 2014 Budget Act
Separate trigger mechanisms to accelerate repayments to schools and local governments