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Committee debates Prop 130 implementation: $35 million annual stream via $500 million PERA warrant under consideration
Summary
Committee members spent significant time weighing a drafting approach to meet Proposition 130’s $350 million obligation: issuing a $500 million warrant to PERA to generate an estimated $35 million a year for 10 years, with discussion about reserve impacts, credit rating, administration and whether the death‑benefit portion runs in perpetuity.
The Joint Budget Committee devoted extended discussion to implementing Proposition 130’s funding directive and the technical mechanism proposed to finance the $350 million obligation to first responders.
Pierce Lively of the Office of Legislative Legal Services briefed the committee on a draft that would create a Peace Officer Training and Support Fund funded by a $35 million annual transfer from the general fund tied to a $500 million warrant issued to PERA (Public Employees' Retirement Association). "This section of law... describes a statutorily $35,000,000 a year is coming from," Lively said, summarizing the financing approach.
Under the proposal the state would issue a warrant (a one‑time $500 million payment) to PERA; PERA would invest the funds and the state would reduce direct distributions to PERA by an amount the committee estimates at about $35 million annually for a set period. The proposal’s goal is to use PERA’s investment earnings on the $500 million…
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