As California pension costs increase, so do UC tuition and fees.
In one of our most popular Posts in the past year, we noted that as public pension costs have risen in California, so too have tuition and fees in the UC and Cal State Systems.
Sadly, this trend is going to continue. As we noted in December, the State faces another substantial increase in pension costs because of CalPERS’ dismal returns. We predicted then, correctly it turns out, that higher education would foot the bill. Earlier this month, the UC System proposed increases in tuition and fees. As the State continues to shift funding from higher education (as well as environmental protection and other public investments) to pay for the overly-generous retirement benefits of public employees, it is younger California residents who foot the bill and suffer the consequences.
California Public Finances 101: The young pay for the mistakes of the past and the State fails to invest in their future.