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2021-22 Proposed State Budget: Governor Suggests a Possible End to the Personal Leave Program Effective July 1, 2021

Posted: 1/8/2021 Tags: budget legislation policy politics salary Tags Views: 1508

On January 8, 2021, Governor Gavin Newsom released his proposed 2021-2022 State Budget that will fund the government for the 12-month period starting July 1, 2021. This kicks off the nearly six-month process for the Legislature and Governor to negotiate and adopt a state budget.

The state spending proposal for next fiscal year would total just over $227 billion, with $164.5 billion in general fund expenditures. Regarding state employee compensation, the Governor’s budget proposal summary states:

“Although fiscal risk remains high, the revenue picture has improved. Given the updated revenue projections and the scope of the Budget, employee compensation reductions may not be necessary during the 2021-22 fiscal year.”

Director of Finance Keely Bosler stated the Administration hopes to be able to restore state employee salaries and will look at the budget picture again with the May Revision to the proposed state budget and make a determination at that time. With an improved state budget outlook and the Governor’s proposal, ACSS will advocate for the end of the PLP 2020 program for excluded employees effective July 1, 2021.

If adopted in the final state budget and implemented by CalHR, the end of the PLP 2020 program would mean that beginning July 1, 2021, excluded employees would no longer have a salary reduction of 9.23% and would no longer receive the 16 hours of “PLP 2020” leave credits. The Governor’s budget summary states that CalHR anticipates collective bargaining with rank-and-file organizations to modify the PLP 2020 program for rank-and-file employees.

In addition to the possible end of the PLP 2020, here is a quick rundown on a few items of interest to ACSS members:

  • $42.1 million in new funding for higher health care and dental costs for active state employees
  • An additional $616 million in one-time funding to prefund retiree healthcare (this makes up for the employee contribution being suspended for the current fiscal year and keeps the target date to eliminate retiree health care liabilities at 2046)
  • In addition to the $5.5 billion state employer contribution to CalPERS for state pension costs, an additional $1.5 billion supplemental pay down of retirement liabilities at CalPERS (with an additional $4.1 billion of supplemental payments proposed over the next three years to total an additional $5.6 billion)
  • $15.6 billion in the Rainy Day Fund and $2.9 billion in operating reserves
  • A permanent 5% reduction in state operating efficiencies (including reduced office and lease space)

As the proposed state budget progresses, ACSS will continue to meet with CalHR to advocate for supervisory and managerial employees. As we delve into more of the proposed budget details, we will report on any new positions and increased funding proposals for departments outlined in the full budget or if there are other proposals that impact ACSS and its members.

The Governor’s complete budget summary can be found here: Budget Summary (CA.gov)
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ACSS Needs You! Nominate Yourself as a Delegate or Chapter Officer.

Posted: 1/7/2021 Tags: election Tags Views: 235

Now is the time to act and become a more important part of ACSS leadership! Nominating yourself for a Chapter Position or as a Delegate is a great way to get involved and become a part of positive change.

ACSS needs nominations to fill the following positions:

  • Chapter President
  • Chapter Vice President
  • Chapter Secretary/Treasurer
  • Delegates
  • If you have never been involved with the leadership of an association, a great place to start is to become a Delegate. Delegates have the unique experience to attend and participate in all the events and opportunities at Delegate Assembly.

    Your vote and your voice matters! Many Delegates go on to become even more involved with the organization and with their own Chapter Leadership. Once you have familiarized yourself with the process of ACSS Leadership, many opportunities for advancement can open up for you!

    Nominate yourself TODAY!
    Open Nominations Close on February 1st!

     

    Not sure which Chapter you belong to? Click here to find your Chapter.
    Click here to learn more about the ACSS Elections Process.
    Click here to view photos of the most recent Delegate Assembly in 2018
    .
    Questions? Contact acss@ACSS.org or your Chapter President.


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    CalHR Issues Guidance to State Agencies in Implementing New CalOSHA COVID-19 Prevention and Response Standards

    Posted: 12/22/2020 Tags: COVID-19 legislation policy Tags Views: 658

    The Division of Occupational Safety & Health (CalOSHA) recently adopted new emergency temporary standards for COVID-19 prevention and response in workplaces. On December 18, 2020 California Department of Human Resources (CalHR) Director Eraina Ortega provided guidance to state departments to ensure the temporary CalOSHA standards are part of each department’s written plan to prevent and respond to COVID-19.

    The CalOSHA emergency regulations require most California employers to adopt COVID-19 prevention programs and policies to ensure safe distancing, require face coverings, and adhere to new testing and reporting requirements.

    State departments have already implemented many of the new standards. CalHR’s direction highlights potential changes as follows:

    • to ensure confidentiality of employees, departments should not identify the specific number of cases if fewer than 11 are reported
    • face coverings are required in open cubicles and can only be removed when alone in a room
    • departments must provide testing to all employees in an “exposed workplace” defined as three or more COVID-19 cases in a 14-day period (an exposed workplace is not the whole building or department, but the area where cases were present)
    • testing must be on state work time with no out-of-pocket employee costs with testing continuing until the workplace outbreak is over
    • major outbreaks (20 or more cases in 30-days) require additional testing
    • employee screening processes are required for all departments (self-screening is allowed)
    • employees with a “COVID-19 exposure” (within six feet from an infected person for a total of 15 minutes in 24 hours) are excluded from the workplace and provided telework or ATO

    Director Ortega’s direction to departments contains links to relevant guidance, CalOSHA standards, FAQs, etc. The CalHR direction can be viewed here.

    If you have questions about the guidance or impact of the CalOSHA regulations, please contact your ACSS Labor Relations Representative.


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    CalHR Orders Most State Offices Closed in Response to the New Stay at Home Order

    Posted: 12/4/2020 Tags: benefits COVID-19 legislation policy Tags Views: 1438

    On December 3, 2020 California Department of Human Resources (CalHR) Director Eraina Ortega notified state department leadership that effective Monday, December 7, with some exceptions, state offices will close in response to the California Department of Public Health’s new Stay at Home Order. Offices will remain closed for at least three weeks.

    Departments must immediately review their Continuity of Operations/Continuity of Government plans and determine which critical functions require staff to continue to report to the workplace. The CalHR direction provides that “all staff not performing critical functions at the workplace should remain at home teleworking, or if no telework is available, provided Administrative Time Off (ATO).”

    The “critical functions” of essential government services has not changed and includes:

    • Government Leadership
    • Emergency Management
    • Social Services/Education
    • Information Technology/ Communication
    • Public Safety/Regulatory Enforcement
    • Medical/Health
    • Critical Infrastructure
    • Food Supply
    • Environmental Protection
    • Public Information
    • Unemployment Insurance Claims Processing
    • 24/7 Institutions (prisons, state hospitals, veterans homes, etc.)
    • Essential Government Services

    The CalHR instruction includes prioritizing telework for at risk employees (age 65 or older and those with chronic health conditions) and providing telework for all employees eligible for telework. ATO is only provided as a “last resort.” When ATO is approved, it is approved regardless of an employee’s available leave balance.

    If you have questions about the new Stay at Home Order and CalHR direction, please contact your ACSS Labor Relations Representative.


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    Get Involved! - ACSS Elections Web Portal and Open Nominations

    Posted: 12/2/2020 Tags: ACSS elections election events Tags Views: 583

    Make your voice heard and get involved! Nominations are now OPEN!

    • Are you a natural leader?
    • Are you passionate about ensuring your fellow excluded employees' voices are heard?
    • Do you want to stand up for the rights of all excluded employees?
    • Do you want to help make ACSS a better organization?

    Now is the time to act and become a more important part of ACSS! Nominating yourself for a Chapter Position or as a Delegate is a great way to get involved and become a part of positive change.

    Why should I become a Chapter Officer or Delegate?

    • Helps you develop leadership skills
    • Allows a safe space for your opinions and ideas to be shared
    • Lets you experience networking opportunities and camaraderie with fellow excluded employees in your local Chapter
    • Involves you with positive changes that can help excluded employees in the workplace

    Are you interested, but not sure where to start? If you have never been involved with the leadership of an association, a great place to start is to become a Delegate. Delegates have the unique experience to attend and participate in all the events and opportunities at Delegate Assembly. Your vote and your voice matters. Many Delegates go on to become even more involved with the organization and with their own Chapter Leadership. Once you have familiarized yourself with the process of ACSS Leadership, many opportunities for advancement can open up for you!

    Visit the new ACSS Elections Web Portal and Nominate yourself TODAY!

    Nominations are open from December 1, 2020 through February 1, 2021.


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    ACSS Members - Update your information!

    Posted: 11/17/2020 Tags: Tags Views: 842

    In 2020, have you made any changes to your contact info? If so, use the easy Update My Info form on our website to update your information!  With this form, you can update your:

    • Name
    • Address
    • Phone number
    • Email address
    • Work contact info
    • Work department or work location
    • Classification

    Make sure we have your most current contact information so that we can provide up-to-date news and information to you. 


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    CalHR Suspends Employee Leave Reduction Policies

    Posted: 10/21/2020 Tags: benefits policy Tags Views: 2564

    On October 20, 2020, CalHR Director Eraina Ortega issued an order to state departments to suspend policies that require leave balances be reduced below the vacation/annual leave cap.  Departments are directed to not require employees to implement leave-reduction plans until the 2020 Personal Leave Program (2020 PLP) ends or July 1, 2022, whichever is sooner.
     
    This is welcome news for ACSS members and consistent with ACSS’ requests to CalHR to address the leave-cap for excluded employees during the duration of the 2020 PLP.  With the additional 2020 PLP time off, many excluded employees would have a difficult time meeting leave-reduction plans.  CalHR’s action recognizes this difficulty and gives employees and departments more flexibility to meet critical work demands during the ongoing pandemic. 
     
    If you have any questions about leave policies or CalHR’s direction to departments, please contact your ACSS Labor Relations Representative.
     
     
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    ACSS Call with CalHR and Finance - No Federal Funds to Reverse Employee Compensation Cuts

    Posted: 10/15/2020 Tags: budget COVID-19 policy representation salary Tags Views: 1643

    On October 14, ACSS joined CalHR Director Eraina Ortega and Chief Deputy Paul Starkey on a call with labor unions and employee organizations providing an update from Director of Finance Keely Bosler on the efforts to secure additional federal funding.

    Triggers to Restore Employee Compensation Not Met

    The 2020-2021 State Budget Act (AB 89) includes trigger language that would restore 18 categories of budget cuts if additional federal funds are available by October 15, 2020.

    In a surprise to no one, Finance Director Bosler reported that no additional federal money was received by the deadline and therefore none of the Budget Act cuts will be restored.

    Under Section 8.28 of the Budget Act, if $14 billion were received, the restored funding for employee compensation would add up to $1.89 billion which would end the PLP 2020 program (Section 3.90) and potentially restore the suspended general salary increases for state employees (Section 3.91). With receipt of federal funds by October 15 of more than $2 billion, but less than $14 billion, the restoration among the 18 budget categories would be proportional.

    Although this means the PLP 2020 program will likely remain in place at least through the end of the budget year in June 2021, no additional state employee compensation cuts have been authorized by the Legislature.

    Deficits Remain and Expenditures Up, but Budget Outlook Not as Dire as Projected in April 2020

    Finance Director Bosler noted the Administration is continuing the effort to obtain needed federal funds as deficits are projected for the next few years. With any funds received after the October 15 Budget Act deadline, it is likely the Administration would work with the Legislature again to allocate those funds.

    The Finance April 2020 economic forecast was bad, but thankfully was wrong with several months of revenue coming in higher than anticipated. At the same time expenditures related to wildfires have been higher than expected. While deficits will continue to be projected as the Governor’s 2021-2022 proposed budget is put together, they will be smaller deficits than originally projected.

    There is no hard state hiring freeze as they want to continue to have flexibility to hire where needed. State departments will be getting instructions through a Finance budget letter to plan to reduce operating expenses by 5 percent for FY 21-22.


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    Open Enrollment for Health, Dental and Vision Begins September 21, 2020

    Posted: 9/14/2020 Tags: benefits health policy Tags Views: 1360

    Open Enrollment for health, dental and vision coverage starts September 21 and ends October 16. This is your opportunity to evaluate your health care selections and make any changes to your health, dental or vision plans and add or drop dependents effective January 1, 2021.

    Dental and vision premiums remain unchanged, but health premiums are increasing. Basic Health Maintenance Organization health plans will increase by an average of 4.44% while Basic Preferred Provider Organization plans will see an average increase of 8.54%.

    The 2021 Consolidated Benefits (CoBen) allowance to be used for health, dental and vision benefits effective January 1, 2021 will decrease slightly to $693 (Single)/$1340 (2-Party)/$1723 (Family). The employer contribution is calculated based on the weighted average premium of the four largest enrolled health plans. Even though health premiums are increasing, because one of the lower cost plans moved into the top four enrolled plans, this results in a slightly lower employer contribution for 2021. The new 2021 CoBen amount for supervisors, managers, and confidential employees is $52 per month higher than the state employer contribution for most rank-and-file employees.

    If you would like to explore different health plan options, CalPERS has a tool that allows you to search plan availability and premium rates based on your zip code. Visit the CalPERS website.

    CalHR is expected to update the “Benefits Calculator” portion of the CalHR website for comparison of plan costs and calculating your exact out of pocket costs, or your CoBen cash back if your selections are lower than the CoBen Allowance. Visit the CalHR Benefits calculator and select “2021” and “Excluded Employee” before entering your options.

    Be on the lookout for Open Enrollment forms from your department. If you are not making changes, no action is needed.


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    CalHR Announces the State will Continue to Collect Payroll Taxes

    Posted: 9/3/2020 Tags: policy Tags Views: 1449

    CalHR Director Eraina Ortega has announced the Administration will not implement a deferral of the withholding and payment of the employee's portion of the Social Security payroll taxes. This means payroll taxes will continue to be withheld from all state employee paychecks.

    The federal policy allows the deferral of payroll taxes from September 1 through December 31, 2020, but the employee taxes are still owed and would be recovered from employees by April 30, 2021. To avoid a double withholding for state employees in 2021 to recover the taxes due, the Administration has declined to participate in the deferral program.

    Director Ortega's September 2, 2020 message states:

    "On August 8, 2020, President Trump issued a Presidential Memorandum directing the IRS to allow the deferral of withholding, deposit, and payment of payroll tax obligations for certain employees effective September 1, 2020. IRS guidance provided on August 28, 2020, clarifies employers can, but are not required to, participate in this program. After evaluation and consideration of the IRS guidance, the Administration is concerned that while the employer withholding obligation would be deferred in 2020, employees would experience a double withholding in 2021 to recover the taxes due. Further, if an employee separates from state service before the deferred tax was collected, the state may be required to pay the tax from state funds. For these reasons, the Administration has determined the program will not be implemented for State of California employees."

    Please contact your ACSS Labor Relations Representative with any issues or concerns regarding this matter.


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