Copyright© 2000 by School Services of California, Inc.

September 15, 2000

Ask SSC . . .

STRS Obligation

Q. If STRS is going to credit summer school, supplemental instruction, leadership stipends, etc., will we need to add the 8.25% STRS employer costs for these salaries to our budgets starting this year?

A. No. The increase in employer costs will not occur until either 2002-03 or 2003-04, depending on the level of 2002-03 funding for schools. Also, this increased employer cost appears to us to be a state mandate. Of course, even if a test claim on this issue is ultimately successful, reimbursement probably wouldn't start until several years down the road. But at least for 2000-01 and 2001-02, there is no additional cost.

--Arnold Bray