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.
April 1, 2011 - We reviewed the proposed Memorandum of Understanding (MOU) for Bargaining Unit 9 (Professional Engineers in California Government) and Unit 10 (California Association of Professional Scientists). If adopted, the MOUs would result in increased state costs in the current year, savings in 2011-12 and 2012-13, and net cost thereafter. Overall, the MOUs would reduce state Bargaining Unit 9 and 10 employee compensation costs in 2011-12 by about 6 percent.
May 29, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 10 (Scientists). Bargaining Unit 10 is represented by the California Association of Professional Scientists. If adopted, the MOU would modestly increase state costs beginning in 2014-15.
March 16, 2011 - We reviewed the proposed Memorandum of Understanding (MOU) for Bargaining Unit 2 (California Attorneys, Administrative Law Judges, and Hearing Officers in State Employment [CASE]). If adopted, the MOU would result in increased state costs in the current year, savings in 2011-12, and net cost thereafter. Overall, the MOU would reduce state Bargaining Unit 2 employee compensation costs in 2011-12 by 3.5 percent.
September 4, 2013 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 9. Bargaining Unit 9 is represented by the Professional Engineers in California Government (PECG).
May 19, 2014 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 13 (Stationary Engineers). Bargaining Unit 13 is represented by the International Union of Operating Engineers. If adopted, the MOU would modestly increase state costs beginning in 2014-15.
April 8, 2011 - We reviewed the proposed Memorandum of Understanding (MOU) for Bargaining Unit 6 (Correctional Peace Officers) and Unit 13 (Stationary Engineers). If adopted, the MOUs would result in increased state costs in the current year, savings in 2011-12, and costs thereafter. Overall, the MOUs would reduce state Bargaining Unit 6 and 13 employee compensation costs in 2011-12 by about 3.6 percent.
March 6, 2009 - We review the administration's proposed labor agreements with SEIU Local 1000, the largest state employee union. The administration estimates that the state's net savings under the proposed agreements would be $337 million ($156 million General Fund) between now and June 2010--compared to costs negotiated in prior Local 1000 MOUs. We also discuss two alternate ways to view the costs of the proposed agreements--compared to costs under the Governor's previous two-day-per-month furlough plan and compared to costs included in the February budget package. The proposed agreements represent a cost increase for the state under both of these alternate methods.
March 25, 2011 - We reviewed the proposed Memorandum of Understanding (MOU) for Bargaining Unit 7 (California Statewide Law Enforcement Association). If adopted, the MOU would result in increased state costs in the current year, savings in 2011-12, and net cost thereafter. Overall, the MOU would reduce state Bargaining Unit 7 employee compensation costs in 2011-12 by 2.8 percent.
September 3, 2013 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 7. Bargaining Unit 7 is represented by the California Statewide Law Enforcement Association (CSLEA). If adopted, the MOU would modestly increase state costs in 2013-14 with increasing costs in 2014-15 and 2015-16.
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.
September 4, 2013 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 6. Bargaining Unit 6 is represented by the California Correctional Peace Officers Association (CCPOA).
May 30, 2018 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 6 (Corrections). Bargaining Unit 6 is represented by the California Correctional Peace Officers Association (CCPOA). This review is pursuant to Section 19829.5 of the Government Code.
August 29, 2013 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 12. Bargaining Unit 12 is represented by the International Union of Operating Engineers (IUOE). If adopted, the MOU would modestly increase state costs in 2013-14. Depending on decisions made by the Department of Finance, state costs could increase further (1) in 2014-15 to provide a one-time payment of $1,200 to employees and (2) in 2015-16 to provide an ongoing 3 percent or 3.25 percent general salary increase.
April 20, 2012 - We reviewed the proposed Memorandum of Understanding for Bargaining Units 12 (Craft and Maintenance), 16 (Physicians, Dentists, and Podiatrists), 18 (Psychiatric Technicians), and 19 (Health and Social Services/Professionals). If adopted, the MOUs would result in modest increases in state costs for employee compensation.
June 14, 2019 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 6 (Corrections). Bargaining Unit 6 is represented by the California Correctional Peace Officers Association (CCPOA). This review is pursuant to Section 19829.5 of the Government Code.
August 23, 2013 - We reviewed the proposed memoranda of understanding (MOUs) for Bargaining Unit 16 and Bargaining Unit 19. Bargaining Unit 16 is represented by the Union of American Physicians and Dentists (UAPD). Bargaining Unit 19 is represented by the American Federation of State, County, and Municipal Employees (AFSCME). If adopted, the MOUs would modestly increase state costs in 2013-14. Depending on decisions made by the Department of Finance, a general salary increase for all affected employees could increase state costs beginning in 2014-15 and thereafter.
June 25, 2021 - This analysis reviews 20 labor agreements received by the Legislature between June 9 and June 15, 2021. The analysis summarizes and provides comments on the agreements. In addition, the analysis provides overarching comments across the 20 agreements and offers recommendations to the Legislature.