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May Budget Revision Reveals More Money Than Previously Predicted

Posted: 5/15/2015 Tags: budget health pension retirement Tags Views: 2448 Print:

Image courtesy of www.StockMonkeys.com 

Compared to the January Budget, in the May Revise, released on 5/14, Governor Brown disclosed $6.7 billion more dollars available to put to use for 2015-16. While this is good news that there is more money available, the vast majority of it will go to public elementary schools, lower-income households, the rainy day fund, CSU and the UC school system (to cover pension debt). Very little of the May Revise was new material for state workers, and revealed more depth of the same proposals we have already known about.

On the hot topic of heathcare and retirement, the Administration continues to move forward with their more cohesive “3-pronged approach” to managing the $72 billion unfunded liability. 1) Prefunding retiree healthcare is most certainly pushing forward. 2) Newly hired state employees will be required to work longer to receive retirement compensation. And 3) more affordable healthcare plans (hinting towards HSA plans) will be implemented. Again, these concepts are not new, but they are becoming more concrete into an impending reality.

As for civil service, the May Revise proposes $57 million in new state employee compensation and reduces contributions to CalPERS down by $110 million. Proof that pension reform is indeed working. It also reiterated the proposals to streamline classifications, abolish vacant positions and broaden recruitment efforts in civil service.

Click here to download the official full version of the May Revise.




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