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Labor and Workforce (20)
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The 2016-17 Budget: Public Employment Relations Board (PERB)

Mar 1, 2016 - As we discuss below, PERB has had to hold a significant share of its authorized positions vacant in order to redirect funds for other purposes. Common for Departments to Have Vacant Positions. Each year, departments ’ costs of doing business increase.
https://lao.ca.gov/Publications/report/3377

The 2015-16 Budget: Health Benefits for Retired State Employees [Publication Details]

Mar 16, 2015 - In our report, we recommend that the policy committees of the Legislature hold hearings to discuss the Governor’s proposal—as well as other options to address retiree health liabilities—with actuaries, employee groups, policy experts, and the public.
https://lao.ca.gov/Publications/Detail/3213

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - Under the agreement, PLP 2025 would (1)  reduce employee pay by 3  percent (effectively holding employee take-home pay flat after accounting for the GSI) and (2)  provide employees five hours of PLP 2025 leave each month.
https://lao.ca.gov/Publications/Report/5061

The 2020-21 Spending Plan: Pensions

Oct 12, 2020 - The 2020 ‑21 Budget Act suspends this authority and holds the state ’s contribution rate flat at the 2019 ‑20 level for the budget year at 10.328  percent (including the state ’s required 2.5  percent contribution to CalSTRS ’ inflation protection program).
https://lao.ca.gov/Publications/Report/4279

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 14, 2024 - We note that, although the agreement would hold employees ’ take-home pay harmless, because of how salary-driven benefits and other factors are calculated with payroll, this provision would result in a net increase in ongoing state costs of $14  million by the end of the agreement.
https://lao.ca.gov/Publications/Report/4919

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - After accounting for the 3  percent GSI provided by the agreement, the net effect of PLP 2025 would be to essentially hold employees ’ take-home pay flat relative to current levels. The agreement specifies that employees would be given “maximum discretion ” to use PLP 2025 leave credits; however, “whenever feasible, PLP 2025 should be used in the pay period it was earned. ” PLP 2025 leave would be requested and used by employees in the same manner as vacation or annual leave.
https://lao.ca.gov/Publications/Report/5060

The 2017-18 Budget: Governor’s CalPERS Borrowing Proposal

May 16, 2017 - For much of the late 1990s and 2000s, the yield averaged around 6  percent, although it fell after the dot-com bust and ensuing recession in the early 2000s. After the rate fell in 2008, it has remained near zero as inflation and U.S.
https://lao.ca.gov/Publications/Report/3673

Unit 9 (Professional Engineers) MOU Analysis

Aug 25, 2022 - The Legislature ultimately holds the authority to establish salary levels for state employees. As such, the Legislature would not need to approve any future agreements with Unit 6 that provided pay increases above what is currently scheduled for that unit even if other bargaining units were to receive GSIs abo ve 2.5  percent in 2022.
https://lao.ca.gov/Publications/Report/4620

The 2024-25 Budget: State Employee Compensation

Mar 21, 2024 - Intentionally holding positions vacant in order to generate salary savings is one common strategy used by d epartments to pay for rising costs of doing business. Turnover. There is always turnover in a workforce as employees promote, separate, or otherwise vacate positions.
https://lao.ca.gov/Publications/Report/4888

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - In light of the 2020 ‑21 budget action, which holds the state ’s contribution rate flat in the current year, the administration ’s proposed additional state General Fund payment of $173  million to CalSTRS in 2021 ‑22 makes sense as a way to offset the lower state rate for one year.
https://lao.ca.gov/Publications/Report/4400