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Legislative News

Articles for tag budget


CalHR Issues Pay Letters Ending the PLP 2020 Reduction and Implementing Salary Increases

Posted: 7/9/2021 Tags: benefits budget legislation policy representation salary Tags Views: 2016

This week CalHR issued two pay letters impacting excluded employees. Pay Letter 21-18 ends the pay reductions (generally 9.23%) from the Personal Leave Program 2020. Pay Letter 21-19 increases salaries for most excluded employees through General Salary Increases and includes a number of Special Salary Adjustments. The State Controller’s Office is implementing these changes with the July 2021 pay period warrants.

All excluded employees are receiving the same General Salary Increases as related rank-and-file employees and from ACSS’ initial review, it appears all Special Salary Adjustments have been passed along to related supervisors and managers.

ACSS awaits a pay letter for the July 1, 2021 General Salary Increase (5.06%) and Special Salary Adjustments for S19 and M19 employees. ACSS will keep impacted employees apprised of the expected timing of these salary adjustments.

CalHR has informed ACSS that the resumption of the “OPEB/CERBT” employee contribution is now expected to also take effect with the July pay warrant. This employee contribution to prefund retiree health care benefits was suspended during the PLP 2020 pay reductions with the state picking up the employees’ portion. The employee contributions generally range from 2 percent to 4.6 percent of salary.

With salaries restored, ACSS now looks forward to working in earnest with CalHR and impacted departments to address a number of supervisory and managerial pay and classification issues.

Pay Letter 21-18 ending the PLP 2020 reductions can be read here.

The portions of Pay Letter 21-19 affecting excluded employees can be read here. (page 14 through 45.)

If you have questions about the salary increases or the prefunding of retiree healthcare, please contact your ACSS Labor Relations Representative.


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ACSS Meets with CalHR: PLP 2020 to End, Excluded Employee Salary Increases July 1, 2021

Posted: 6/16/2021 Tags: bargaining benefits budget policy salary Tags Views: 5002

ACSS met with the Department of Human Resources (CalHR) on June 15, 2021 to discuss pay and benefits for the state’s supervisory, managerial, confidential and exempt employees.

Excluded Employee Pay Plan for 2021-2022

CalHR has confirmed to ACSS that the Personal Leave Program (PLP) salary reductions of 9.23% will end effective June 30, 2021. Full salaries will be restored for all excluded employees and accrual of PLP days will end. CalHR has also confirmed that generally, excluded employees will receive the same percentage salary increases as the bargaining unit to which they are affiliated.

The Exempt and Excluded Employee Pay Plan includes:

  • An end to the Personal Leave Program salary reduction of 9.23%
  • General Salary Increases effective July 1, 2021:

    EXCLUDED EMPLOYEES AFFILIATED WITH BARGAINING UNIT: GSI
    1, 3, 4, 11, 14, 15, 17, 20, 21 (SEIU Units)  4.55%
    2 (+1.33% additional salary adjustment for all)  4.04%
     5  4.90%
     6  5.58%
     7  5.06%
     9  5.58%
     10  7.63%
     12  5.06%
     13  5.83%
     16  5.06%
     18  5.58%
     19*  5.06%
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • Employees will resume the “OPEB” contribution to pre-fund retiree health care (the amount varies from 1.4% to 4.6% of salary). The deduction is expected to resume with the August 2021 pay warrant.
  • All exempt and excluded employees associated with the SEIU bargaining units will continue to receive the $260 taxable cash benefit (health affordability payment) through June 30, 2022.

Exempt and Excluded Employees not directly tied to a bargaining unit (such as many employees who have an “E” Collective Bargaining Identifier) are expected to receive the 4.55% GSI.

CalHR is working on the “Pay Letters” and expects the salary adjustments to be reflected in the July pay warrants. As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments.

Negotiations between CalHR and the representatives for rank-and-file bargaining unis 8, 10 and 19 for new labor contracts continue. ACSS has proposed that any increases in those MOUs also be provided to related excluded employees.

Other Salary and Benefit Advocacy for ACSS Members Continues

At the June 15, 2021 meeting, CalHR and ACSS continued the discussion of salary inequities and classification issues for excluded employees.

CalHR has again committed to providing substantive responses to many ACSS proposals including:

  • Allocating Nursing Consultant, Program Review employees to State Safety Retirement
  • Salary inequity adjustments for Program Directors, Program Assistants, and Unit Supervisors
  • Salary inequity adjustments for excluded Environmental Planners, Transportation Planners and Right-of-Way Agents
  • Reclassification and salary adjustments for the excluded employees in the Health Facility Evaluator Series
  • Salary inequity adjustments for the Food Service Supervisor excluded classes for fiscal year 2020-2021.

ACSS will continue to keep impacted members apprised of the status of potential increases to pay and benefits.

* BU 19 UPDATED as of 7/1/2021


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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: 3696

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.

Read the complete ACSS State Budget Report from Legislative Advocate Ted Toppin at Blanning and Baker, Updated 1/15/2021

The Governor’s complete budget summary can be found here: Budget Summary (CA.gov)
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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: 2076

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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CalHR Issues Pay Letters and Pay Differentials Adjusting Pay

Posted: 7/17/2020 Tags: benefits budget COVID-19 legislation policy representation salary Tags Views: 5487

This week CalHR issued a series of Pay Letters and Pay Differentials adjusting pay for excluded employees. CalHR confirmed to ACSS that the expectation remains that the State Controller’s Office will implement the major changes with the July pay period. This means the next paychecks are expected to include the following:

Personal Leave Program 2020 – a reduction in pay of 9.23% (equivalent to two days’ pay) and accrual of 16 hours of personal leave credit, to be used in the same manner as vacation/annual leave and before any other paid leave (except sick leave).

Suspension of “OPEB/CERBT” Employee Contribution – excluded employees will not pay the contribution to prefund retiree healthcare. The contributions range generally from 2 percent to 4.6 percent of salary. Excluded employees related to bargaining units 12 and 13 will continue to see the deduction, but will receive a pay differential in an equivalent amount. (This pay differential has not yet issued, but is expected to be retroactive to July 1, 2020 if not implemented with the July pay warrant.)

Although General Salary Increases effective July 1, 2020 were suspended or deferred, Merit Salary Adjustments for employees not at the top step of their classifications are unaffected and will continue.

Exempt and Excluded Employees Associated with SEIU Bargaining Units (1, 3, 4, 11, 14, 15, 17, 20, and 21)

  • $260 per month taxable cash benefit to improve access and affordability of healthcare
  • Geographic Pay of $250 per month for employees working in Orange, Santa Cruz, Santa Barbara and San Luis Obispo Counties
  • Special Salary Adjustments (generally 5%) for employees in nearly 100 classifications

>>Click here to review the Pay Letter listing the excluded employee classifications receiving the SSA increases.

Exempt and Excluded Employees Associated with Unit 18

  • A General Salary Increase of 2.75% retroactive to January 1, 2020
  • A Special Salary Adjustment at the top step of 2.5%, effective July 1, 2020 (S18 and M18 employees at the top step of the class for 12 months or more will receive the increase immediately; others will receive the increase through Merit Salary Adjustments when eligible)

As of today, ACSS awaits a Pay Letter implementing expected salary adjustments for S07 and M07 excluded employees related to the Criminalist series and changes to longevity pay, and a change to a pay differentials for DSH Police Officers and S16 and M16 employees for Continuing Medical Education expenses.

ACSS’ initial review has identified a few anomalies in the Special Salary Adjustments. We will pursue clarification and possible corrections or potential amendments to the Pay Letters with CalHR.


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