Budget: state employees to contribute additional 5 percent

by CalWatchdog Staff | January 8, 2010 1:37 pm

From the governor’s office[1]:

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 30^th as scheduled and the following employee compensation changes will go into effect July 1^st:

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[2] 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.

Endnotes:

From the governor’s office: http://gov.ca.gov/issue/state-budget/
Click here: http://gov.ca.gov/executive-order/14146/

Source URL: https://calwatchdog.com/2010/01/08/budget-state-employees-to-contribute-additioanl-5-percent/