Labor Agreements to Achieve Budgetary Savings

Jul 11, 2025 - State Budget Assumes Reduction in Employee Compensation Costs to Address Budget Problem. Control Section 3.90 of the 2025-26 budget (as added by Chapter 5 of 2025 [AB 102, Gabriel]) established an expectation of the Legislature that all 21 of the state’s bargaining units would meet and confer in good faith with the administration before July 1, 2025 to achieve savings assumed in the budget.
https://lao.ca.gov/Publications/Report/5063

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - Control Section 3.90 of the 2025-26 budget (as added by Chapter 5 of 2025 [AB 102, Gabriel]) established an expectation of the Legislature that all 21 of the state’s bargaining units would meet and confer in good faith with the administration before July 1, 2025 to achieve savings assumed in the budget.
https://lao.ca.gov/Publications/Report/5064

MOU Fiscal Analysis: Bargaining Units 10 (Professional Scientists) and 18 (Psychiatric Technician)

Sep 9, 2025 - Suspending the state ’s prefunding contributions reduces state department costs by between 1  percent of pay and 4.5  percent of pay in 2025-26 and 2026-27. (The General Fund share of these costs are paid from the state ’s required annual debt payments under Proposition  2 [2014].)
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 19, 2025 - The administration estimates that this will result in annual costs under the agreement being more than $30  million (more than $20  million General Fund) higher than state costs in 2024-25. After accounting for effects on unplanned overtime costs, we estimate that the agreement would result in state payroll costs for Unit
https://lao.ca.gov/Publications/Report/5066

Recent Changes to State and County IHSS Wage and Benefit Costs

Dec 14, 2018 - Under the local wage supplement model, the cost of the first wage supplement is added to a county ’s IHSS MOE obligation, which is then adjusted annually by the MOE growth factor. However, the costs for subsequent local wage supplements are not added to a county ’s MOE obligation.
https://lao.ca.gov/Publications/Report/3913

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - Since the 1990s, the costs for this benefit have been among the fastes t growing costs in the state budget. Between 2000-01 and 2024-25, the state ’s inflation-adjusted General Fund pay-as-you-go cost towards these benefits increased by more than 250  percent to $2.8  billion.
https://lao.ca.gov/Publications/Report/5061

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

Jun 27, 2025 - Since the 1990s, the costs for this benefit have been among the fastes t growing costs in the state budget. Between 2000-01 and 2024-25, the state ’s inflation-adjusted General Fund pay-as-you-go cost towards these benefits increased by more than 250  percent to $2.8  billion.
https://lao.ca.gov/Publications/Report/5060

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - Full Employer Costs Likely $2   Billion to $3   Billion Annually. Looking broadly at incoming claims each year, employers likely face lifetime SIBTF costs totaling $2  billion to $3  billion for each cohort of claims that injured workers submit each year.
https://lao.ca.gov/Publications/Report/5062

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - Since the 1990s, the costs for this benefit have been among the fastes t growing costs in the state budget. Between 2000-01 and 2024-25, the state ’s inflation-adjusted General Fund pay-as-you-go cost towards these benefits increased by more than 250  percent to $2.8  billion.
https://lao.ca.gov/Publications/Report/5058

MOU Fiscal Analysis: Bargaining Unit 19 (Health and Social Services/Professional)

Sep 1, 2023 - While there currently is one authorized position in this classification, the administration’s fiscal estimates indicate that the administration proposes adding 10.5 additional positions in the classification.
https://lao.ca.gov/Publications/Report/4797