Description: We provide a fiscal analysis of proposed MOUs with Bargaining Units 12 (craft and maintenance workers) and 13 (stationary engineers). We believe that the Department of Personnel Administration's (DPA) estimate of costs resulting from the MOUs in 2006 is reasonable, but that the estimate for 2007-08 is likely too high by around $7 million due primarily to a high estimate of inflation. We estimate that total compensation costs (including benefits) for Unit 12 and 13 rank-and-file employees would rise to about $740 million in 2006-07 under the proposed MOUs for a cost increase of almost 7 percent. In 2007-08, we estimate that costs would increase to over $760 million, or more than 3 percent above 2006-07.