Labor Agreements to Achieve Budgetary Savings

Jul 11, 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/5063

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

Jul 14, 2025 - We have found that establishing a benefit that fundamentally has no bearing on an employee ’s salary to be funded as a percentage of pay is overly complicated and creates risk that the benefit will not be fully funded by the target date.
https://lao.ca.gov/Publications/Report/5064

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 19, 2025 - The proposed agreement does not establish a DROP for Unit 8 or create a promise to establish a DROP in the future. However, it does create a commitment that Local 2881 will be able to present a DROP to CalHR in the future.
https://lao.ca.gov/Publications/Report/5066

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

Jun 27, 2025 - Further, it creates a precedent for (1)  other bargaining units this year to adopt similar actions and (2)  future Governors to see this action as an acceptable trade-off to address future budget problems.
https://lao.ca.gov/Publications/Report/5060

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - Suspending the state ’s contribution to prefund OPEB reduces costs today but contributes to a significant and growing unfunded liability and creates risk that the benefit will not be fully funded by 2048.
https://lao.ca.gov/Publications/Report/5058

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - Mindful of the state ’s limited capacity to immediately work through all backlogged claims, the Legislature could consider creating a fast ‑track process for especially urgent or severe cases. (Over the longer term, additional state staffing could be contemplated to work through the remaining claims.)
https://lao.ca.gov/Publications/Report/5062

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

Sep 9, 2025 - Suspending employer and employee contributions creates a short-term benefit to both the employer and employee; however, it will result in less money being invested in the trust fund and higher unfunded liabilities for the state in the long run.
https://lao.ca.gov/Publications/Report/5073

The 2022-23 Budget: UC Climate-Related Proposals

Feb 16, 2022 - Moreover, the 2021 ‑22 budget added many new one ‑time initiatives to further assist first ‑time entry and re ‑entry into the workforce. Though these initiatives were supported with one ‑time funding, the state will continue to implement and spend these funds in 2022 ‑23.
https://lao.ca.gov/Publications/Report/4538

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - Reducing pension benefits for future hires, as was done in 2010-11 and under PEPRA, creates a significant long-term fiscal benefit to the state but has little short-term benefit. (However, increasing employees contributions towards those benefits does provide immediate state savings.)
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 14, 2024 - The proposed agreement would create a pilot qualification incentive effective the first day of the pay period following ratification of the agreement or November 1, 2024, whichever is later, for employees in specified classifications depending on their helicopter pilot qualifications and/or CalFire helicopter program responsibilities.
https://lao.ca.gov/Publications/Report/4919