SACRAMENTO – Today Governor Gavin Newsom released a proposed budget for fiscal year 2021/22, acknowledging that in the many cost-saving measures made last year, California state workers  made sacrifices.

Following his presentation, Director of Finance  Keely Bosler stated, as it pertains to state workers, “We hope to be able restore the  pay reductions in the budget year, but we need to look at the May revision to see if that is something  that can be afforded and we’ll make a determination at that time, and we would also plan to restore anything through the collective bargaining process once we make that determination.”

“We thank the Governor and his administration for recognizing the sacrifices our CSLEA members and all state workers have made during this unprecedented time,” said CSLEA President Alan Barcelona.  “We, of course, all look forward to brighter days and we look forward to working with CalHR and the administration following the May budget revision.”

Here is the current information as it pertains to state workers:

Regarding Personal Leave Program (PLP)

Based upon an improved revenue picture, the administration has determined that it may not be necessary  to continue employee compensation reduction, specifically the Personal Leave Program (PLP) into the fiscal year beginning July 1, 2021. The PLP was the result of a negotiated side letter which reduced gross salary by 9.23% (a net reduction of 5.23% because of the suspension of employees’ contribution to pre-funding of retiree health care) in exchange for 2 PLP days per month.  The side letter authorized PLP up to a two-year period with CalHR having the discretion to terminate the program provided the State’s resources were sufficiently funded.

General Salary Increases

The side letter also deferred General Salary Increases from 2020 and 2021 and it is unclear based on today’s announcement whether the draft budget will permit the State and CSLEA to advance the deferrals to be paid sooner.  The subject will be an item to be discussed when the parties return to the bargaining table.

CSLEA will continue to update the membership as more details become available.