The Associated Press reports that a key committee of the pension fund voted to take $600 million more from the state than it did last year – driven mainly by large investment losses the fund sustained during the 2008-2009 fiscal year. However, one board member said he is concerned about the state’s dire fiscal condition.
California faces a $19 billion budget deficit in the fiscal year that begins in July, prompting Governor Arnold Schwarzenegger to propose eliminating the state’s main welfare program, according to the news report.
The board will consider how long to postpone the rate increase during its June meeting.
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