BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2008
Lou Correa, Chair Hearing date: June 23, 2010
AB 2008 (Arambula) as amended 5/28/10 FISCAL: YES
STATE EMPLOYEES: EXEMPTION FROM FURLOUGH FOR SPECIFIED CIVIL
SERVICE EMPLOYEES
HISTORY :
Sponsor: Author
Prior legislation: SBX8 29 of 2010 (Steinberg),
Vetoed
AB 1765 (Solorio) as amended March 11, 2010
Senate PE&R Committee
ASSEMBLY VOTES :
PER & SS 5-0 4/21/10
Appropriations 12-5 5/28/10
Assembly Floor 55-21 6/02/10
SUMMARY :
This bill :
1)would prohibit state employees of the Franchise Tax Board
(FTB) and the State Board of Equalization (BOE) from being
furloughed.
2)would prohibit a state agency, board, or commission from
directly or indirectly implementing, or assisting in
implementing, a furlough of FTB or BOE employees.
3)specifies that this bill does not create a legal
authorization for the furlough of state employees through
executive order.
4) defines "employee" to mean a state civil
service employee.
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Date: 6/16/10 Page 1
BACKGROUND AND ANALYSIS :
1) Existing law :
a) sets forth the general policy that the workweek of a
state employee shall be 40 hours and authorizes
workweeks of different hours to be established in order
to meet the varying needs of different state agencies.
b) authorizes the Governor to require that the 40-hour
workweek be worked in four days in any state agency or
part thereof when the Governor determines that the best
interests of the state would be served thereby.
c) vests the Department of Personnel Administration
(DPA) with the duties and responsibilities for the
administration of salaries, hours, and other
personnel-related matters and authorizes the DPA to
represent the Governor in matters of collective
bargaining related to hours, wages, and working
conditions.
2) Executive Orders S-16-08 and S-13-09 imposed mandatory
furloughs on state civil service employees, regardless of
funding source and with limited exemptions.
Furloughs of 2 days per month began in February of 2009,
and were increased to 3 days per month in July of 2009.
Since the July implementation, many state departments,
boards, and commissions have been closed three days per
month. Some have been exempted from closures and those
employees are on a self-directed furlough program. The
self-directed program allows employees to accrue furlough
days and use them like vacation days, upon management
approval. Accrued furlough days have no cash value and
must be used within 24 months of the end of the furlough
program.
According to the Department of Personnel Administration,
accrued furlough days must be used before an employee may
use accrued vacation, annual leave, personal holidays,
holiday credit, personal leave time credit, and
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Date: 6/16/10 Page 2
compensatory time off.
The current 3-day furlough requirement amounts to a
reduction of approximately 13.85% of employees'
compensation.
According to DPA, some departments employing civil service
employees have been exempted from the furlough program.
California Highway Patrol and 911 Dispatchers
Department of Forestry and Fire Protection (during fire
season)
The Public Utilities Commission
The Legislative Counsel Bureau
The Bureau of State Audits
The current furlough program is scheduled to end on June
30, 2010.
COMMENTS :
1) Arguments in Support
According to the author,
This measure is intended to stop future governors from
furloughing state employees in cases that are
counter-productive to the state's overall administration
or just defy common sense. It is contrary to the
effective administration of state government to limit the
revenue collecting agencies, such as FTB and BOE. Every
day employees of the FTB and BOE are not working equals
less effective tax revenue collection, including ensuring
that taxpayers are paying their full amount.
There are many other departments, programs, and agencies
that could be included in this bill using similar
reasoning. However, the agencies listed are intended as
a starting point for a more rational and effective
furlough strategy, should one be employed in the future.
The California State Employees Association states,
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"In an economic time where more than half of Californians
are worried about paying their rent or mortgage, the
furlough program currently in existence is not sound
fiscal or public policy. This is a "lose-lose" situation
for California."
2) Arguments in Opposition
According to the Department of Finance,
Furloughs are a temporary cash management solution, it is
necessary to apply furloughs across the board in order to
effectively manage the workforce and avoid inequities,
and this bill would limit the power of future governors
to implement furloughs in a fiscal emergency.
3) SUPPORT :
Association of California State Supervisors (ACSS)
California State Employees Association (CSEA)
CSEA Retirees, Inc.
California State University Employees Union (CSUEU)
4) OPPOSITION :
Department of Finance
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Date: 6/16/10 Page 4