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Treasurer seeks $3.8 million one‑time to cover actuarial pension shortfall; committee notes reserve impact
Summary
Committee staff described a proposal to appropriate $3,800,000 in FY‑25 to support the actuarially determined contribution for the state teachers' pension, with carryforward into FY‑26; committee members noted the appropriation would raise reserve requirements by roughly $190,000 and slightly reduce the one‑time balance in the current sheet.
Committee staff described a late proposal to appropriate $3,800,000 in one‑time funds in FY‑25 to enable the treasurer's office to meet the actuarially determined contribution for the state teachers' pension and to provide carryforward capacity into FY‑26.
Staff said the treasurer's office had flagged that some revenues relied upon to meet the actuarial requirement were running lighter than anticipated and requested an onetime appropriation for FY‑25 to “true up” the contribution. The recommended construct would appropriate $3,800,000 to the Secretary of Administration; the commissioner of finance and management would transfer funds to the treasurer upon determination of the amount necessary to ensure the actuarial required contribution is met.
Staff told the committee the appropriation would affect the budget reserve requirement: five percent of $3.8 million is approximately $190,000, which would reduce that one‑time balance and make the FY‑25 one‑time balance approximately negative $190,000 on the working sheet unless other bottom‑line funds remain available. The treasurer's office intends to scrub the number and, if not all funds are needed in FY‑25, the unspent portion would carry into FY‑26.
Committee members asked staff to provide the specific bill language and spreadsheets the next morning; they noted that because the bottom line still had money in it, the appropriation could be accommodated without cutting other agreed items. The committee did not record a formal vote during the session; staff said the language and spreadsheets would be circulated for review.
