May 21, 2024 - The Governor’s May Revision proposes to (1) administratively establish a new ongoing unallocated 7.95 percent reduction to state operation expenditures and (2) make the 2024-25 unallocated reduction to state operation expenditures related to vacant positions ongoing (it was approved as “one time” as part of the Legislature’s early action package). Between the two proposals, the administration proposes that the Legislature delegate responsibility to the Governor to determine how to permanently reduce state operations by roughly 10 percent. As we discuss in this post, we think there is merit to the Department of Finance finding operational efficiencies; however, (1) any resulting reductions would be made based on the Governor's priorities and not necessarily the Legislature's priorities and (2) we think there is a high risk that the level of savings assumed from these two unallocated reductions will not fully materialize in 2024-25. To the extent that savings do not materialize, these proposals would create a larger future budget challenge.
August 23, 2024 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 5 (Highway Patrol). This review is pursuant to Section 19829.5 of the Government Code.
August 29, 2023 - Initial Assessment of Proposed Labor Agreements: Units 1, 3, 4, 6, 11, 12, 14, 15, 17, 19, 20, and 21
September 1, 2023 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 12 (Craft and Maintenance). This review is pursuant to Section 19829.5 of the Government Code.
August 25, 2022 - We reviewed the proposed memorandum of understanding for Bargaining Unit 2 (Attorneys and Hearing Officers). Bargaining Unit 2 is represented by the California Attorneys, Administrative Law Judges, and Hearing Officers in State Government (CASE). This review is pursuant to Section 19829.5 of the Government Code.
February 15, 2024 - In this brief, we analyze the Governor’s budget proposals for the California State University (CSU). We also revisit recent CSU one-time initiatives and capital projects.
August 14, 2024 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 8 (Firefighters). This review is pursuant to Section 19829.5 of the Government Code.
August 14, 2024 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 10 (Professional Scientific). This review is pursuant to Section 19829.5 of the Government Code.
March 26, 2019 - When facing budget problems in the past, the state has “deferred” payments from one fiscal year into the next, providing significant one-time budgetary savings. While the state has already addressed many of its outstanding deferrals, there are still three major categories of deferrals remaining. These are related to: (1) state employee payroll, (2) pension payments, and (3) Medi-Cal payments. The Governor proposes using $1.7 billion to undo the payroll and pension deferrals. We find this would improve the state’s fiscal position and moderately improve the state’s budgetary practices, however, this approach has shortcomings relative to alternatives. This post recommends an alternative approach to the Governor’s proposal.
September 7, 2023 - We reviewed the proposed memorandum of understanding (MOU) for the nine bargaining units represented by Service Employees International Union, Local 1000. This review is pursuant to Section 19829.5 of the Government Code.
September 6, 2024 - Each year, our office publishes the California Spending Plan to summarize the annual state budget. This publication provides an overview of the 2024‑25 Budget Act, gives a brief description of how the budget process unfolded, and then highlights major features of the budget approved by the Legislature and signed by the Governor. All figures in this publication reflect actions taken through early July 2024, but we have updated the narrative to reflect actions taken later in the legislative session.
September 7, 2023 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 16 (Physicians, Dentists, and Podiatrists). This review is pursuant to Section 19829.5 of the Government Code.
September 7, 2023 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 6 (Corrections). This review is pursuant to Section 19829.5 of the Government Code.
March 24, 2017 - We recommend that the Legislature amend the proposed budget bill language for Control Section 4.11 to improve transparency and legislative oversight over the state’s workforce.
September 12, 2019 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 2 (Attorneys and Hearing Officers). This review is pursuant to Section 19829.5 of the Government Code.
January 30, 2023 - We reviewed the proposed memorandum of understanding for Bargaining Unit 10 (Professional Scientific). Bargaining Unit 10 is represented by the California Association of Professional Scientists. This review is pursuant to Section 19829.5 of the Government Code.
March 1, 2016 - We are uncertain if the administration’s budget proposals will provide the Public Employment Relations Board the resources it needs to address the existing backlog in processing cases. We recommend that the Legislature (1) determine how fast cases should be addressed by the board and then (2) ask PERB and affected groups questions in order to understand what level of funding and staffing is necessary to process cases within the desired amount of time.