In the May revision to his 2013-14 budget, Gov. Jerry Brown announced an increase in state revenue, largely as a result of rising stock and real estate prices. Appropriately, the governor has counseled spending restraint because the state still hasn't addressed core budget issues and inevitably will face more shortfalls when markets revert to the mean. But there is a uniquely good spot for that revenue.
The California Teachers' Retirement System, CalSTRS, administers pension promises made to teachers by their employers, which are school districts. CalSTRS is an intermediary that collects contributions from districts, teachers and the state, invests those contributions to generate earnings, and uses the proceeds to pay out benefits to retired teachers.