Office of the Superintendent Sacramento*

long-term fiscal impacts the unfunded liability for retiree health benefits will have on their districts. Response to Finding 1: Partially Agree with Finding.

unfunded liabilities for contracted retiree health benefits. Some of those approaches include: Creating Trust funds or other funding plans but stopping all contributions to them due to current • economic conditions Creating Trust funds and contributing to them • Ignoring the problem Regarding the GASB standards as a "plan" when in fact it is only an accounting statement The District agrees that a funding plan is necessary. One component of the funding plan will be employee contributions and this component will begin with the start of the 2010-11 school year, based on a recent agreement with SCTA. The District begins the budget process for its 2011-12 budget in January. Given the instability and uncertainty in state funding of education and the record budget cuts that the District has been forced to absorb, additional funding commitments by the District in its 2011-12 budget will depend upon additional agreements and changes with our collective bargaining partners and the amount of new funding the District receives, through COLA to the District's apportionment, grants or other sources.