July 2026

Proposition 98 Overview

Districts' Pension Contribution Rates and Amounts

(Dollars in Millions)

  Actual   Projectionsa
  2024-25 2025-26 2026-27   2027-28 2028-29 2029-30
Contribution Rates       
CalSTRS 19.1% 19.1% 19.1%   19.1% 19.1% 19.1%
CalPERS 27.1 26.8 26.4   26.0 24.4 22.8
Contribution Amounts       
CalSTRSb              
School districts $7,070 $7,669 $7,907   $8,165 $8,430 $8,704
Community colleges 567 628 655   676 698 721
Subtotals ($7,637) ($8,297) ($8,562)   ($8,841) ($9,128) ($9,425)
CalPERSc              
School districts $4,453 $4,992 $5,234   $5,299 $5,124 $4,939
Community colleges 701 759 824   834 806 778
Subtotals ($5,154) ($5,751) ($6,058)   ($6,133) ($5,930) ($5,717)
Total District Contributions       
School districts $11,523 $12,661 $13,141   $13,463 $13,553 $13,643
Community colleges 1,268 1,387 1,479   1,511 1,505 1,499
Totals $12,791 $14,048 $14,620   $14,974 $15,058 $15,142
a Projections are based on CalSTRS' and CalPERS' most recent actuarial valuations. Rates and amounts for 2027-28 and subsequent years will be updated based on actual teacher payroll and investment returns, among other factors.
b Contribution amounts are for CalSTRS' Defined Benefit Program and are LAO estimates based on creditable compensation. Share of contributions from schools and community colleges through 2026-27 are based on the split of payroll from CalSTRS' creditable compensation reports. Thereafter, we assume the shares remain constant.
c Contribution amounts are estimates provided by CalPERS as of September 2026.
 CalSTRS = California State Teachers' Retirement System. PEPRA = Public Employees' Pension Reform Act.