Description: We provide a fiscal analysis of the proposed MOU with Bargaining Unit 5, which includes CHP officers. The administration's estimate of additional 2006-07 costs is reasonable. We estimate, however, that the annual fiscal impact after 2006-07 will be substantially more than shown in administration estimates because its projections assume (1) relatively low growth in the statutory pay formula for CHP officers, (2) no increases in state health premium costs after 2007-08, and (3) no change in required employer retirement contribution rates. By 2010-11, annual state costs could be $100 million higher than suggested in the administration estimate. In addition, various factors including pay and benefits for CHP and funding demands in the Department of Motor Vehicles are likely to put stress on the financial condition of the state Motor Vehicle Account, which funds Unit 5 personnel costs.