Genest

While California was in a period of fiscal plight in 2003, the Legislature passed, and Governor Davis signed, Senate Bill No. 20X1 (2003-2004 1st. Ex. Sess.) (Senate Bill 20), reducing the state’s obligation to fund the Supplemental Benefit Maintenance Account of the Teachers’ Retirement Fund by $500 million for fiscal year 2003-2004.

The Teachers’ Retirement Board (TRB), as manager of the California State Teachers’ Retirement System (CalSTRS), then filed a petition for writ of mandate and a complaint for declaratory and injunctive relief against the Director of the Department of Finance (DOF), claiming that Senate Bill 20 is unconstitutional because it violates the contract clause of both the state and federal Constitutions and interferes with TRB’s plenary authority to administer the assets of CalSTRS. TRB successfully moved for summary judgment on the first ground.

DOF appeals, arguing that the trial court erred in finding Senate Bill 20 unconstitutional, and that the court should not have addressed the issue because the controversy is not ripe for adjudication.

TRB cross-appeals, asserting that the trial court erroneously failed to address whether Senate Bill 20…