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October 5, 2020 - The 2020-21 Budget Act includes several new initiatives and policy changes related to labor and employment programs. This post provides a high-level overview of the state’s major labor and employment programs and highlights the major labor issues in the budget package, including provisions related to the coronavirus disease 2019 (COVID-19) pandemic.
September 9, 2020 - The budget assumes that employee compensation is reduced by up to 10 percent in 2020-21. This analysis provides a historical record of all the labor agreements between the state and its employees to reduce state costs in 2020-21 and—in most cases—2021-22. In addition, this analysis looks forward and provides comments and recommendations to help the Legislature think through future decisions to reduce employee compensation should the budget problem persist beyond 2021-22.
August 24, 2020 - Presented to: Assembly Budget Subcommittee No. 4 on State Administration Hon. Jim Cooper, Chair
July 30, 2020 - Presented to: Assembly Budget Subcommittee No. 4 on State Administration Hon. Jim Cooper, Chair
June 25, 2020 - We reviewed the proposed labor agreements between the state and Bargaining Units 1, 3, 4, 6, 9, 11, 14, 15, 17, 20, and 21. These agreements establish Personal Leave Program 2020 and other provisions to reduce employee compensation costs assumed in the 2020-21 budget. This review is pursuant to Section 19829.5 of the Government Code.
April 9, 2020 - The COVID-19 outbreak has pushed state unemployment to record highs. Alongside recent federal actions, the state may want to explore options to expand assistance to unemployed workers. Expanding assistance to unemployed workers could mitigate financial hardship for unemployed workers and, in some cases, provide statewide economic stimulus. In this post, we describe four options to expand unemployment benefits: (1) change state formulas to increase underlying benefit levels, (2) add state dollars on top of the federal $600 weekly add-on, (3) build a state-funded UI program for workers who currently are not eligible for benefits, and (4) temporarily allow ineligible workers to access State Disability Insurance benefits.
March 27, 2020 - On Wednesday, March 18, 2020, the President signed the Families First Coronavirus Response Act (H.R. 6201), the second federal relief act aimed at mitigating the economic and public health consequences of COVID-19. In this post, we summarize the two forms of paid leave required under H.R. 6201, discuss how these interact with other state benefit programs, and highlight key issues for the Legislature to consider as it responds to the ongoing crisis.
March 23, 2020 - This post summarizes recent federal relief actions in the unemployment insurance program, discusses how these federal actions interact with current state programs, and highlight options the Legislature may want to pursue in responding to the ongoing crisis.
March 20, 2020 - The Legislature likely will be asked to approve labor agreements for eight bargaining units in 2020—the employees represented by these bargaining units account for more than one-half of the state’s General Fund personnel costs. The purpose of this post is to highlight the importance of requiring the administration to justify compensation increases it agrees to in labor agreements submitted to the Legislature for approval.
February 19, 2020 - In this post, we provide a background on employment laws, take an initial look at worker outcomes in the wage claim process, and highlight several opportunities to improve the process. We also assess the Governor’s proposal to hire additional staff at the Department of Industrial Relations to reduce delays that have recently begun to affect wage claims.
February 11, 2020 - The 2020‑21 Governor’s budget includes two labor proposals related to Chapter 296 of 2019 (AB 5, Gonzalez), a new law that limits what types of work businesses can hire independent contractors to do. In this post, we provide a background on the new law, discuss how many workers it might affect, and make recommendations about the workload proposals at the Department of Industrial Relations (DIR) and the Employment Development Department (EDD).
January 22, 2020 - The 2020-21 Governor’s Budget includes 18 budget proposals related to labor and employment programs. This post provides a high-level overview of these proposals. Our office plans to evaluate several of these proposals more closely in the coming weeks.
January 13, 2020 - This report presents our office’s initial assessment of the Governor’s budget. We estimate the Governor had a $6 billion surplus to allocate to discretionary purposes in 2020-21. The Governor allocates most of the surplus toward one-time purposes, including maintaining a positive year-end balance in the state’s discretionary reserve. Under the administration’s estimates, total reserves would reach $20.5 billion at the end of 2020-21—this represents a $1.7 billion increase from the 2019-20 enacted level. California continues to enjoy a healthy fiscal situation. Despite its positive near-term picture, the budget’s multiyear outlook is subject to considerable uncertainty. In addition to describing the condition of the budget under the Governor’s proposal, this report discusses tools the Legislature can use to mitigate against these heightened risks.
January 20, 2020: Upon further review, one item included in the original version of Appendix Figure 3 on discretionary on health spending should not have been included (specfically, use of the Medi-Cal drug rebate fund to offset General Fund costs). Removing this item—which reduces General Fund spending—from the list of discretionary choices made in the Governor’s budget increases our calculation of the surplus to $6 billion. The document is updated to reflect these changes.
Update 1/24/20: Adjusted Judicial Branch items in Appendix Figure 1 to reflect ongoing spending.
January 9, 2020 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 18 (Psychiatric Technicians). This review is pursuant to Section 19829.5 of the Government Code.
Corrected 1/10/2020: Changed Figure 3 and reference to the figure in text.
October 17, 2019 - The 2019-20 budget included significant augmentations and statutory changes in various other programs, including to support emergency services, the regulation of cannabis and alcoholic beverages, and construction and maintenance of state infrastructure.