Notable Points From The Governor's State Budget Report
Posted: 1/13/2015
On Friday 1/9/15, Governor Brown released his proposed 2015-2016 State Budget. Brown claims that the budget still remains “precariously balanced” and urges “financial restraint and prudence” in order to avoid another recession in the future. Here are the proposals that affect ACSS and ACSS members:
State Employee Compensation
The Budget includes funds to cover the collectively bargained state employee pay raises and the increased healthcare costs of all state employees. Most importantly, the budget states that money is also included to extend those pay increases to state managers and supervisors.
Here is the complete write up in the budget summary:
The Budget includes an additional $560 million ($200 million General Fund) in 2015-16 for employee compensation and health care costs for active state employees. Included in these costs are collectively bargained salary increases for many of the state’s rank and file employees and state managers and supervisors. Funding has also been included for anticipated 2016 calendar year health care premium increases.
Prefunding Retiree Healthcare
As promised, the Governor’s budget proposes the prefunding of state employee retiree healthcare through the collective bargaining process as state employee bargaining units expire. The goal is to split retiree healthcare costs equally between employee and the state – much like pensions.
The budget reports the unfunded state employee healthcare liability at $72 billion. However, the budget includes no state revenue at this time to address that liability.
The budget also envisions some fundamental changes to CalPERS health benefits aimed at reducing costs to the state and its employees. Most of these changes will impact new employees. Specifically, the budget calls for a rise in the retiree healthcare vesting period from 10-20 to 15-25 years for newly hired employees. It also proposes that “newly hired workers should not expect a higher subsidy for health care premiums in retirement than what they received during their working years.”
The budget also envisions a CalPERS run High Deductible Health Plan as an option for employees supplemented by a proposed state funded Health Savings Account to help lower the state’s premium subsidy.
Civil Service Reforms
CalHR continues its goal to streamline the civil service system and bring state hiring practices into the 21st century. “Administrative efforts will be focused on updating and streamlining the state’s job classifications; modernizing recruitment, examination, and hiring practices; developing more robust employee and management training programs; reforming probation policies; and improving employee and management evaluation processes. The Administration will also review the state’s processes and policies with the goal to eliminate antiquated, unnecessary, and/or duplicative processes and procedures and streamline overly onerous and bureaucratic ones. ”
The budget promises that employee groups and the Legislature will be consulted as this reform effort progresses.
Increasing Job Positions
The budget proposes the creation of an additional 2,303 state positions in 2015-16. Here is a rundown on some of the new positions outlined in the budget summary:
Department of Public Health
- 237 positions, Licensing and Certification programs
Department of State Hospitals
· 14 positions, involuntary medication authorization process
- 75 positions, Atascadero State Hospital
- 74 positions, Coalinga State Hospital
Department of Developmental Services
- 184 positions, Porterville Secure Treatment Program
· 179 positions, Program Improvement Plans at Sonoma, Fairview and Porterville Developmental Centers
Department of Social Services
- 28 positions, Community Care Licensing Program
- 715 positions, California Health Care Facility
Department of Transportation
· 44 maintenance positions to improve state highway systems
- 25 project initiation document positions
Department of Toxic Substances Control
- 16 positions, Hazardous Waste Control
- 6 positions, pilot project for hazardous waste
Employment Development Department
- 238 positions, continue service improvements
Department of Industrial Relations
- 27 positions, Elevator Safety
- 44 positions, Occupational Safety and Health
The Governor’s complete budget summary can be found here: http://www.ebudget.ca.gov.
Stay tuned to our blog on this topic. ACSS may have more information and commentary after the ACSS Board meeting on January 17, 2015.