FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Annual Budget for the Fiscal Year Ending June 30, 2026
RECOMMENDATION:
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Approve and adopt 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 $4,994,380 over the approved budget for FY 24/25 and an increase of approximately $6.7 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 $17,300,030, 10 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).
COMMITTEE REVIEW:
This item was reviewed by the Administrative Committee at its May 22, 2022, meeting, and recommends Board approval with a 4-0 vote. The committee requested staff to include funding for the Staff Counsel position. After the Committee review, updated insurance numbers were received for the Building Services expense within the Administrative budget. Those have been included in this proposed budget, accounting for the differences between what was reviewe...
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