The State Worker

Chronicling civil-service life for California state workers

June 19, 2009
Senate budget analysis 'assumes' SEIU contract won't be ratified

Money stack.jpgThe state Senate Committee on Budget & Fiscal Review has released a summary of actions taken this week by the Budget Conference Committee. There are some nuggets of info in the 18-page document, including a reference that assumes the SEIU Local 1000 labor contract will not get through the Legislature.

The union is continuing to push for lawmakers to pass the contract bill, AB 964, Local 1000 President Yvonne Walker has told us. The deal includes several concessions, but obligates contract-covered employees to only one furlough day per month, retroactive to February, instead of the two unpaid days off per month mandated by Gov. Arnold Schwarzenegger.

The Senate report, which you can read by clicking here, notes that lawmakers rejected Gov. Arnold Schwarzenegger's proposal to cut all state workers' pay by 5 percent beyond the reductions already imposed through furloughs.

Then it says this on PDF page 13:

Assumes some savings that will be achieved if proposed labor agreements are not ratified by the Legislature. General Fund savings are estimated at $60 million in 2008-09 and $150 million in 2009-10.

In other words, the committee that would have to pass the contract "assumes" the contract won't get through the Legislature. Not exactly a ringing endorsement of AB 964.

The report notes an anticipated $50 million in employee health cost savings because of the lower-than-expected rates negotiated by CalPERS and another $100 million from the fund's PPO premium "holiday."

The committee also signed off on selling part of the State Compensation Insurance Fund for $1 billion.

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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 jortiz@sacbee.com.

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