The State Worker

Chronicling civil-service life for California state workers

December 31, 2008
2009-10 budget: Impact on state workers; CPR revived

State Finance Director Mike Genest unveiled Gov. Arnold Schwarzenegger's 2009-10 budget proposal today. It continues the call for a employee furloughs, two fewer paid holidays each year, changes to overtime pay calculations and layoffs.

The new wrinkle: Schwarzenegger wants to dump CalPERS as the health care rate negotiator / administrator for the state workforce. Here are the pertinent paragraphs on pages 45 and 46 of the governor's plan:

Porposed changes to General Fund expeditures include:

A decrease of $132.2 million in health care costs beginning in January 2010 by contracting for lower cost health care coverage directly from an insurer rather than through CalPERS. Savings beginning in 2010‑11 will prefund Other Post‑Employment Benefit costs.

And Non-General Fund adjustments include:

A decrease of $47.9 million from various special funds in health care costs by contracting for lower cost health care coverage directly from an insurer rather than through CalPERS. Savings beginning in 2010‑11 will prefund Other Post‑Employment Benefit costs.

You can read the 2009-10 budget plan here.

And remember the California Performance Review? Schwarzenegger is reaching back to it for ways to consolidate and streamline the government. An insert to the budget outlines more than two dozen state boards, agencies, bureaus and commissions the administration wants to streamline, combine or eliminate.

You can read that document by clicking on this link.

The Bee is all over the governor's proposal
. We have a half-dozen reporters and editors working the story from various angles this afternoon. Watch for several stories about it tomorrow.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at


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