FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Annual Budget for the Fiscal Year Ending June 30, 2026
RECOMMENDATION:
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Recommend that the Board approve the proposed Annual Budget for the Fiscal Year Ending June 30, 2026.
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BACKGROUND:
On an annual basis, SBCERA is required to adopt an Annual Budget which covers both Administrative and Non-Administrative Expenses of the Plan for the coming fiscal year.
The proposed annual budget represents an increase of $4,731,380 over the approved budget for FY 24/25 and an increase of approximately $6.4 million over the estimated actual expense for the fiscal year ending June 30, 2025. The approved budget for FY 24/25 included the expense for several positions that were not filled or not filled for the entire year, fewer disability unit expenses that expected, and a building project that is being deferred to FY 25/26.
California Government Code 31580.2 imposes a statutory limit on Administrative Expenses based on no more than 21 basis points of the most recent Actuarial Accrued Liability (AAL). That limit is $36,481,729. The Administrative Budget is $17,200,030, 9.9 basis points of the AAL. The requested Administrative Expense Budget is within the statutory limit.
Staff has prepared the proposed budget, which is attached as Exhibit A.
In compliance with SBCERA Administrative Policy No. 011 (Policy for Procurement Other than Investment Management Services), a list of the expected vendors has been attached as Exhibit B (confidential).
BUDGET IMPACT:
This item will establish the Annual Budget for the Fiscal Year Ending June 30, 2026.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Proposed Annual Budget for the Fiscal Year Ending June 30, 2026
Exhibit B: Vendor Listing (Confidential)