Budget: state employees to contribute additional 5 percent
State Employee Compensation Savings:
To achieve $1.4 billion in General Fund savings, Governor Schwarzenegger proposed 15 percent reduction in state personnel costs achieved by modifying employee compensation and reducing our workforce budget.
The changes to employee compensation are as follows:
State employees will continue their contribution to solving our state budget crisis as we approach another challenging year. The current furlough program will end on June 30th as scheduled and the following employee compensation changes will go into effect July 1st:
- Employees will be required to contribute an additional five percent towards their retirement costs;
- An across the board five percent reduction in all salaries;
- A five percent reduction in the cost of the state workforce payroll implemented by executive order S-01-10 requiring all department directors to reduce their payrolls by five percent.
Click here to read the Governor’s executive order to reduce state workforce cost by five percent.
The approval for pension contribution change and pay reduction will require collective bargaining and statute changes.
Related Articles
Will California repudiate its debt?
AUGUST 12, 2010 By JOHN SEILER California’s government soon could be paying its bills with IOUs, Controller John Chang announced
Calif. Economy 47th Worst of States
JUNE 21, 2011 By JOHN SEILER California’s stagnating economy suffered more bad news by ranking 47th of the 50 states
Expect More Population Flight
NOV. 2, 2010 By WAYNE LUSVARDI Given the predictably one-sided recent election results in California, a new trend may be
