[gubamyster]

The state budget has nearly $10bil in surplus, and that's after socking away the required rainy day fund allocation.

I keep hearing that. Then I keep hearing that the public retirement funds are underfunded by Trillions which will only continue to grow. Are the retirement funds NOT counted in the budget or how are there twp set of facts? Which is correct or what am I missing?

[Mariner]

The pension fund (CalPers) is a non-profit completely independent of the State Budget.