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

Jun 27, 2025 - Lower Costs Today in Exchange for Higher Costs Later. Suspending both the employer and employees ’ contributions to prefund OPEB reduces costs today but contributes to a significant and growing unfunded liability and creates substantial risk that the benefit will not be fully funded by 2047.
https://lao.ca.gov/Publications/Report/5060

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

Jul 14, 2025 - Lower Costs Today in Exchange for Higher Costs Later. Suspending both the employer and employees ’ contributions to prefund OPEB for two years reduces costs today but contributes to a significant and growing unfunded liability.
https://lao.ca.gov/Publications/Report/5064

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - Compared with spending levels today, the administration estimates that the agreement would result in General Fund savings of $120.2  million in 2025-26 and $69.8  million in 2026-27. After PLP 2025 ends and the state resumes making contributions to prefund OPEB, the administration estimates that the state ’s annual General Fund costs would be $412.2  million higher than today.
https://lao.ca.gov/Publications/Report/5058

The 2020-21 Budget: Staffing to Address New Independent Contractor Test

Feb 11, 2020 - Analysis Predicting AB  5 Workload Difficult at This Early Stage . . . As we noted earlier, at this time we cannot predict how many contractors will be reclassified and hired as employees due to AB  5.
https://lao.ca.gov/Publications/Report/4151

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Jan 23, 2017 - It is difficult to predict with any level of certainty the timing, duration, or severity of the next economic downturn. However, it is certainly possible that a downturn could occur within the next few years.
https://lao.ca.gov/Publications/Report/3534

MOU Fiscal Analysis: Bargaining Unit 2 (Attorneys and Hearing Officers)

Aug 29, 2016 - While the administration ’s plan seems to be to keep making pay-as-you-go benefit payments for many years, the new arrangement would begin to fund “normal costs ” each year for the future retiree health benefits earned by today ’s Unit 2 workers.
https://lao.ca.gov/Publications/Report/3495

Unit 8 (Firefighters) MOU Analysis

Aug 26, 2022 - The Legislature today cannot bind the hands of a future Legislature. As such, the Legislature approving this agreement today should not be seen as the Legislature acquiescing to whatever proposal the committee puts forward.
https://lao.ca.gov/Publications/Report/4621

MOU Fiscal Analysis: Bargaining Units 1, 3, 4, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21

Jan 10, 2017 - These proposed pay and benefit increases—along with the state contributions to match employee payments to a retiree health funding account—would be a significant new budgetary commitment for the state with both near- and long-term effects on state obligations.
https://lao.ca.gov/Publications/Report/3520

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - With Influx of Claims Driving Backlog, Today ’s SIBTF Claimants Might Expect to Wait Ten Years. Injured workers must finalize their subsequent injury workers ’ compensation case before proceeding with their SIBTF claim for additional benefits.
https://lao.ca.gov/Publications/Report/5062

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - In the case of retiree health benefits, the state pays a percentage of pay towards normal cost (specified in labor agreements and matched by employees) to prefund the benefit and it pays the unfunded liability on a “pay-as-you-go ” basis where it pays out the claims cost for existing retirees.
https://lao.ca.gov/Publications/Report/4800