Other Government Areas Publications

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Other

Webcast: Public Retirement Benefits, Options for the Future

February 10, 2011 - In this 15-minute video, LAO State Finance Director Jason Sisney describes why public employee retirement costs have risen substantially in recent years for California governments and the Legislature's options for creating new types of retirement benefits for future state and local employees. At the same time, as Sisney discusses, the Legislature may have to identify new funding soon to address substantial unfunded liabilities in the teachers' and University of California retirement systems, among others.

Hearing Handout

2011-12 Budget: The Governor's Employee Compensation Proposals

February 3, 2011 - Presented to Assembly Budget Subcommittee No. 4 on State Administration

Hearing Handout

2011-12 Budget: The Governor's Employee Compensation Proposals

February 1, 2011 - Presented to Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety and the Judiciary

Hearing Handout

2011-12 Budget: The Governor's Employee Compensation Proposals

January 26, 2011 - The Governor proposes over $580 million in General Fund budget solutions for state employee compensation and state operations. In this handout we provide an overview of state employment, consider the erosion of anticipated current-year savings, summarize and assess the Governor’s proposals for 2011-12, and discuss alternative options available to the Legislature to increase savings in employee compensation.

Post

MOU Fiscal Analysis: Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 (SEIU Local 1000) [Revised]

December 22, 2010 - We reviewed the recently ratified labor agreements with the Service Employees International Union (SEIU) Local 1000, the largest state employee union. The administration estimates that the state's net savings under the proposed agreements will be $383 million ($164 million General Fund) in the current fiscal year—compared with costs negotiated in prior Local 1000 memoranda of understanding (MOUs). The administration’s estimates are generally reasonable, but we (1) discuss concerns we have with the administration’s assumption that leave days will not result in overtime costs or productivity losses, and (2) compare the MOUs’ costs with the previous three-day-per-month furlough program. Finally, we discuss the current status of state employee collective bargaining and major employee compensation policies currently affecting executive branch employees.

Other

Webcast: California's Other Budget Deficit--The Unemployment Insurance Fund Insolvency

October 20, 2010 - In this short video, Todd Bland, Director of the Social Services Section at the LAO discusses the report "California's Other Budget Deficit: The Unemployment Insurance Fund Insolvency."

Report

California's Other Budget Deficit: The Unemployment Insurance Fund Insolvency

October 20, 2010 - California's Unemployment Insurance (UI) program became insolvent in 2009, ending that year with a shortfall of $6.2 billion. Absent corrective action, the fund deficit is projected to increase to approximately $20 billion at the end of 2011. This report looks at the history of the UI program, compares California's program to those in other states, examines different scenarios for addressing the insolvency, and makes recommendations to the Legislature for solving this difficult problem.

(Video Summary)

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MOU Fiscal Analysis for Bargaining Units 5, 8, 12, 16, 18, and 19

July 15, 2010 - In our required fiscal analysis of six proposed collective bargaining agreements, we find that the memoranda of understanding (MOUs), if adopted, would produce state savings in 2010-11, little net budgetary impact in 2011-12, and some increasing state costs for one or more years thereafter. Over the long term (many decades), the MOUs' proposed changes in retirement benefits could produce significant state savings, but no actuarial analysis of these changes has yet been submitted by the administration. The Legislature will face a major decision whether and how to approve the proposed continuous appropriations for economic terms of the six bargaining agreements.

Hearing Handout

Various Employee Compensation and Retirement Items

June 23, 2010 - Presented to The Conference Committee on the Budget

Hearing Handout

The Employment Development Department's Automation Projects

May 3, 2010 - Presented to: Budget and Fiscal Review Subcommittee No. 5 On State Administration Hon. Denise Moreno Ducheny, Chair

Hearing Handout

Assessing the Governor's Employment Training Initiative

February 3, 2010 - Presented to: Senate Budget and Fiscal Review Committee Hon. Denise Moreno Ducheny, Chair

Hearing Handout

Unemployment Insurance Automation Projects

February 3, 2010 - Presented to: Assembly Committee on Insurance Hon. Jose Solorio, Chair

Report

The 2010-11 Budget: The Governor's Employee Compensation Proposals

January 27, 2010 - This report discusses some key issues facing the Legislature in the employee compensation area of the budget. In 2009–10, the state has achieved significant savings due to the Governor’s furlough program, which is being challenged in many court cases. For 2010–11, the Governor proposes various measures to reduce state personnel costs, including shifting pension contribution costs from the state to employees, unallocated reductions in personnel budgets of departments, and an across–the–board salary reduction for employees. These proposals would result in $2.5 billion in savings ($1.4 billion General Fund). We believe that employee compensation reductions are necessary due to the magnitude of the budget problem. Nevertheless, some of the administration’s proposals would face legal challenges or otherwise may be difficult to implement. Consequently, we recommend that the Legislature focus efforts to reduce compensation costs on pay reduction options. Special session.

Hearing Handout

Public Employee Pension and Retiree Health Costs in California

November 12, 2009 - Presented to the Council of State Governments, La Quinta, California

Report

Workers' Compensation: Recent Decisions Likely to Increase Benefits and Employer Costs

October 16, 2009 - Recent decisions by the Workers’ Compensation Appeals Board (WCAB) concluded that the current system used to measure permanent disability (PD) in workers' compensation claims can be challenged. This analysis discusses how the WCAB’s decisions could lead to (1) changes in PD ratings, (2) increased incentive for litigation, and (3) decreased uniformity in determining PD. Ultimately, the likely result would be increased benefits for workers and higher costs for businesses and governments.

Other Government Areas Staff

Chas Alamo
(916) 319-8357
Employment, Labor Law, and Property Taxes
 
Ann Hollingshead
(916) 319-8305
State Budget and Federal Funding
 
Lourdes Morales
(916) 319-8320
Local Government
 
Jessica Peters
(916) 319-8363
Emergency Services and Business Regulation
 
Nick Schroeder
(916) 319-8314
Public Employment, CalPERS, and Elections
 
Brian Weatherford
(916) 319-8337
Corporation Tax and Insurance
 
Angela Short
(916) 319-8309
Teachers' Retirement Policy/ Child Welfare/ Community Care Licensing
 
Justin Garosi
(916) 319-8359
Personal Income Tax
 
Seth Kerstein
(916) 319-8365
Sales and Excise Taxes and Demographics