BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           1137 (Burton)
          
          Hearing Date:  4/19/04          Amended: 3/26/04       
          Consultant:  Maureen Ortiz          Policy Vote: P. E. & R.  
           3-2                     
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          BILL SUMMARY: 
          
          SB 1137 requires that the retired member seat on the  
          CalSTRS Teachers' Retirement Board, currently appointed by  
          the Governor, be elected by retired and disabled STRS  
          members to a four year term, beginning January 1, 2006.
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                          Fiscal Impact (in thousands)

           Major Provisions                    2004-05             2005-06   
                      2006-07            Fund
          
           Election costs                     $0                    
          $104                   $0               STRF
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          STAFF COMMENTS:  

          Costs to prepare and distribute the notice of elections,  
          test and print ballots, print outer envelopes, candidate  
          statements and return envelopes, and to count and tabulate  
          returned ballots will be approximately $104,700 every four  
          years.  These estimates are based on costs from a recently  
          held CalSTRS K-12 election.

          SB 1137 will allow approximately 170,000 retired and  
          disabled members of the STRS Defined Benefit Program and  
          the Cash Balance Benefit Program to elect their  
          representative member on the Teachers' Retirement Board.  

          CalSTRS provides retirement, disability and survivor  
          benefit programs for approximately 725,000 active and  
          retired teachers and other credentialed employees in  
          California's K-12 public schools and community colleges.   
          The 12 member Board administers the CalSTRS Defined Benefit  










          Program and the Cash Balance Program and oversees the  
          investments of the approximately $117 billion Teachers'  
          Retirement Fund.