BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 478 (Gomez) - Memoranda of Understanding
Amended: September 3, 2013 Policy Vote: PE&R: unavailable
Urgency: Yes Mandate: No
Hearing Date: September 6, 2013
Consultant: Maureen Ortiz
This bill meets the criteria for referral to the Suspense File.
However, due to the urgency of the legislation and the
appropriation in the current fiscal year, the committee may wish
to vote on this measure today.
Bill Summary: AB 478 approves the recent Memoranda of
Understanding (MOUs) agreed to by the state and the following
seven state bargaining units:
Bargaining Unit 6: California Correctional Peace
Officers Association (CCPOA)
Bargaining Unit 7: California Statewide Law Enforcement
Association (CSLEA)
Bargaining Unit 9: Professional Engineers in California
Government (PECG)
Bargaining Unit 12: International Union of Operating
Engineers (IUOE)
Bargaining Unit 16: Union of American Physicians and
Dentists (UAPD)
Bargaining Unit 18: California Association of
Psychiatric Technicians (CAPT)
Bargaining Unit 19: American Federation of State,
County and Municipal Employees - Health and Social Service
Professionals (AFSCME)
AB 478 appropriates $18,538,000 for expenditure in the 2013-14
fiscal year as follows: $16,509,000 from the General Fund,
$1,359,000 from unallocated special funds, and $670,000 from
other unallocated nongovernmental cost funds, for the purpose of
state employee compensation for the current fiscal year for
Units 6, 7, 12, 18, and 19. The costs of several provisions
such as depending health vesting, dental benefits and travel
reimbursements will be absorbed within each department's
existing resources and will, therefore, not require an
AB 478 (Gomez)
Page 1
appropriation for FY 2013-14.
Additionally, AB 478 provides for a continuous appropriation for
the payment of employee compensation and benefits for members of
Bargaining Units 7, 16, 18, and 19 for the 2013-14, 2014-15, and
2015-16 fiscal years; and for Units 6, 9 and 12 for fiscal years
2013-14 and 2014-15.
Fiscal Impact: Following is the fiscal impact of each of the
seven bargaining unit agreements contained in AB 478.
Unit 6: (CCPOA)
(In thousands)
-----------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|------------+---------+----------+--------+----------------------|
|Work period | | | | |
|Changes | $9,678| $21,952| $22,383| $22,383 ($22,228 GF)|
|------------+---------+----------+--------+----------------------|
|Capt | | | | |
|holiday | ($71)| ($97)| ($99)| ($99) ($98 GF)|
|Reduction | | | | |
|------------+---------+----------+--------+----------------------|
|Health | $5,236| $22,653| $32,422| $32,422 ($32,199 GF)|
|------------+---------+----------+--------+----------------------|
|4% GSI | ------| $61,052|$122,105| $122,105 ($121,263 |
| | | | | GF)|
|------------+---------+----------+--------+----------------------|
|Shift diff | $5| $6| $6| $6 ($6 GF)|
|------------+---------+----------+--------+----------------------|
|Travel | $375| $450| $450|$450 ($447 |
| | | | |GF) |
-----------------------------------------------------------------
AB 478 (Gomez)
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In addition, the Unit 6 agreement includes a savings in the
current year (FY 2013/14) of approximately $27.5 million from
implementation of the Institutional Redirection Plan. The
agreement will also result in savings of approximately $205,000
annually from a Field Training Officer Program.
The total first year costs for implementing the Unit 12
agreement are approximately $15.2 million; costs for FY 2014/15
are approximately $106 million; and costs for 2015/16 will be
about $177.3 million.
If a similar salary increase is ultimately provided to affected
managers and supervisors, the cost will be approximately $45
million during the duration of the two year contract.
Unit 7: (CSLEA)
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
| | | | | |
|3% GSI | | ------| $14,863| $14,863 ($10,481 |
| | -----| | | GF)|
|----------+--------+----------+-----------+--------------------|
|4.67% SSA | | ------| $1,982| $1,982 ($1,932 GF)|
| | -----| | | |
|----------+--------+----------+-----------+--------------------|
|Health | $1,084| $4,663| $9,522| $9,522 ($2,807 GF)|
|----------+--------+----------+-----------+--------------------|
|Travel | $90| $108| $108| $108 ($32 GF)|
|----------+--------+----------+-----------+--------------------|
|FF sched | ($11)| ($11)| ($11)| ($11) ($11 GF)|
AB 478 (Gomez)
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|----------+--------+----------+-----------+--------------------|
|Dental | ($353)| ($468)| ($233)|($233) ($69 |
| | | | |GF) |
| | | | | |
---------------------------------------------------------------
The total first year costs for implementing the Unit 7 agreement
are approximately $810,000; costs for FY 2014/15 are
approximately $4.3 million; and costs for 2015/16 will be about
$26.2 million. Allowing employees to cash out up to 20 hours of
leave each year could result in increased short term costs of
several million dollars, but will reduce the state's long-term
liabilities.
If a similar GSI is ultimately provided to affected managers and
supervisors, the cost will be approximately $3.9 million ($1.4
million General Fund) annually.
Unit 9: (PECG)
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
| | | | | |
|3.3% GSI | -----| | $47,293| $47,293 ($1,466 GF)|
| | | ------| | |
|----------+--------+----------+-----------+--------------------|
|Class | -----| ------| $778| $778 ($24 GF)|
|Consol | | | | |
|----------+--------+----------+-----------+--------------------|
|Availabili| | | | |
|ty | -----| ------ | $472| $472 ($37 GF)|
|Incentive | | | | |
|----------+--------+----------+-----------+--------------------|
|Shift | -----| ------| $112| $112 ($3 GF)|
|diff | | | | |
|----------+--------+----------+-----------+--------------------|
|Travel | $172| $172| $172| $172 ($5 GF)|
AB 478 (Gomez)
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|----------+--------+----------+-----------+--------------------|
|Health | $2,115| $7,727| $17,441| $17,441 ($541 GF)|
|----------+--------+----------+-----------+--------------------|
|Dental | ($590)| ($766)| ($337)|($337) ($10 |
| | | | |GF) |
| | | | | |
---------------------------------------------------------------
The total first year costs for implementing the Unit 9 agreement
are approximately $1.7 million; costs for FY 2014/15 are
approximately $7.1 million; and costs for FY 2015/16 will be
about $65.9 million.
If a similar GSI is ultimately provided to affected managers and
supervisors, the cost will be approximately $13.6 million ($0.7
million General Fund) annually.
Unit 12: (IUOE)
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
| | | | | |
|Bonus | | $13,813| ------| -------|
| | -----| | | |
|----------+--------+----------+-----------+--------------------|
|Health | $1,597| $6,864| $9,811| $9,811 ($3,170 GF)|
|----------+--------+----------+-----------+--------------------|
|3% GSI | | ------| $21,040| $21,040 ($6,692 GF)|
| | -----| | | |
|----------+--------+----------+-----------+--------------------|
|Uni/footwe| -----| $145| $145| $145 ($17 GF)|
|ar | | | | |
|----------+--------+----------+-----------+--------------------|
|Travel | $172| $172| $172| $172 ($55 GF)|
|----------+--------+----------+-----------+--------------------|
|Dep. | ------| $492| $508|$508 ($164 |
AB 478 (Gomez)
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|Vesting | | | |GF) |
| | | | | |
---------------------------------------------------------------
Total first year costs for implementing the Unit 12 agreement
are approximately $1.7 million; costs for FY 2014/15 are
approximately $21.5 million; and costs for FY 2015/16 will be
about $31.7 million. These cost estimates are based on the
assumption that the Director of the Department of Finance
determines that there are sufficient revenues available for the
$1,200 bonus on July 1, 2014. If there are not available
resources for this compensation item, the members of Unit 12
will instead receive a 3.25% GSI on July 1, 2015. Costs for
that salary increase are estimated at $22.8 million ($7.2
million General Fund). Additionally, the increases associated
with dependents vesting of health benefits, footwear allowance,
and uniform reimbursement will only occur on July 1, 2014 if
there are sufficient revenues - otherwise, those costs will
shift to FY 2015/16.
Should CalHR opt to provide the 3% general salary increase to
nonrepresented employees, additional costs would be
approximately $5.2 million ($1.4 million General Fund) during
the term of the agreement.
Unit 16: UAPD
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
| | | | | |
|Phys 6% | | -----| $2,456 | $2,456 ($2,250 GF)|
| | ------| | | |
|----------+--------+----------+-----------+--------------------|
|Pod 3% | | -----| $60| $60 ($55 GF)|
| | ------| | | |
|----------+--------+----------+-----------+--------------------|
|MC 3% | | -----| $1,498| $1,498 ($399 GF)|
| | ------| | | |
|----------+--------+----------+-----------+--------------------|
|2% GSI | ------| $8,865| $8,865| $8,865 ($7,985 GF)|
|----------+--------+----------+-----------+--------------------|
|2% GSI | | | | |
|other | ------| ------| $7,185| $7,185 ($7,093 GF)|
AB 478 (Gomez)
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|----------+--------+----------+-----------+--------------------|
|Travel | $24| $24| $24| $24 ($21 GF)|
|----------+--------+----------+-----------+--------------------|
|Health | $170| $1,004| $2,192|$2,192 ($1,975 |
| | | | |GF) |
| | | | | |
---------------------------------------------------------------
Total first year costs for implementing the Unit 16 agreement
are approximately $194,000; costs for FY 2014/15 are
approximately $9.9 million; and costs for FY 2015/16 will be
about $22.3 million.
These cost estimates provided by CalHR are based on the
assumption that the state will have sufficient revenues to
implement the first part of the salary increases on July 1,
2014. If there salary increases are delayed to July 1, 2015 due
to insufficient resources, total costs would be $19.9 million
($17.6 million General Fund).
Unit 18: (CAPT)
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
| | | | | |
|2% GSI | | $7,732| $7,732 | $7,732 ($7,108 GF)|
| | -----| | | |
|----------+--------+----------+-----------+--------------------|
|Health | $1,006| $4,326 | $8,835| $8,835 ($8,123 GF)|
|----------+--------+----------+-----------+--------------------|
|2.25 % | | ------| $8,872| $8,872 ($8,157 GF)|
|GSI | -----| | | |
|----------+--------+----------+-----------+--------------------|
|Shift | -----| -----| $138| $138 ($120 GF)|
|diff | | | | |
|----------+--------+----------+-----------+--------------------|
|Travel | $84| $84| $84| $84 ($77 GF)|
|----------+--------+----------+-----------+--------------------|
|Dental | $121 | $335| $543| $543 ($500 GF)|
|----------+--------+----------+-----------+--------------------|
|Dep. | ------| | $165|$165 ($152 |
AB 478 (Gomez)
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|Vesting | | -------| |GF) |
| | | | | |
---------------------------------------------------------------
Total first year costs for implementing the Unit 18 agreement
are approximately $1 million; costs for FY 2014/15 are
approximately $12 million; and costs for FY 2015/16 will be
about $25.8 million.
The costs estimates above are based on the assumption that a 2%
general salary increase will be implemented on July 1, 2014, and
that a 2.25% general salary increase will take effect on July 1,
2015. The 2% increase that will take effect on July 1, 2014 is
contingent on a determination by the Director of Finance that
the state has sufficient revenue to meet its existing
obligations and that there is also funding available for the 2%
salary increase. If the determination is that there are NOT
sufficient funds available on July 1, 2014, then all Unit 18
employees will instead receive a 4.25% general salary increase
on July 1, 2015. If that occurs, the fiscal impact of the
salary increase will be $16 million ($15 million General Fund)
annually beginning FY 2015/16.
It should be noted that the costs for increases in the shift
differential pay will offset by these compensations no longer
being counted as part of the final retirement benefit
calculation.
Should CalHR opt to provide the 4.25% general salary increase to
nonrepresented employees, additional General Fund costs will be
approximately $1.6 million annually.
Unit 19: (AFSCME)
(In thousands)
---------------------------------------------------------------
| |2013/14 |2014/15 |2015/16 |Annual Ongoing |
|----------+--------+----------+-----------+--------------------|
|1.5% & 4% | | | | |
|GSI | | $8,947| $8,947| $8,947 ($6,232 GF)|
| | -----| | | |
|----------+--------+----------+-----------+--------------------|
|1.5% & 4% | | | | |
AB 478 (Gomez)
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|GSI | ------| ------| $9,133| $9,133 ($6,336 GF)|
|----------+--------+----------+-----------+--------------------|
|CE & Cred | $3| $613| $613| $613 ($564 GF)|
|----------+--------+----------+-----------+--------------------|
|Shift | | $582| $1,174| $1,174 ($948 GF)|
|diff | ------| | | |
|----------+--------+----------+-----------+--------------------|
|Dep | ------| $177| $177| $177 ($138 GF)|
|Vesting | | | | |
|----------+--------+----------+-----------+--------------------|
|Travel | $75| $75| $75| $75 ($59 GF)|
|----------+--------+----------+-----------+--------------------|
|Health | $730| $3,182| $6,520| $6,520 ($5,073 GF)|
|----------+--------+----------+-----------+--------------------|
|.6% | ------| | $3,058| $3,058 ($2,379)|
|adjust | | -------| | |
|----------+--------+----------+-----------+--------------------|
|Dental | ($222)| $155| ($67)|$150 |
| | | | |($117) |
| | | | | |
---------------------------------------------------------------
Total first year costs for implementing the Unit 19 agreement
are approximately $586,000; costs for FY 2014/15 are
approximately $13.6 million; and costs for FY 2015/16 will be
about $29.6 million. All salary increases, and shift
differentials, are based on the assumption that the Director of
the Department of Finance will make the determination that
revenues are sufficient to implement the GSI on July 1, 2014.
If it is determined that there are not sufficient funds
available to implement these increases on July 1, 2014, the GSIs
will shift to July 1, 2015 and costs will be approximately $23
million ($16.6 million General Fund).
Background: Existing law requires, under the State
Employee-Employer Relations Act (the Ralph C. Dills Act), that
the state, represented by the Department of Human Resources
(CalHR), collectively bargain with exclusive employee
representatives over all aspects related to wages and working
conditions, and that agreements be formalized in MOUs that are
subsequently approved by the Legislature.
Additionally, the Legislative Analyst Office (LAO) is required
AB 478 (Gomez)
Page 9
to analyze tentative agreements between the state and employee
bargaining units and to report on its findings to the
Legislature within 10 days of receiving the MOU from CalHR
(Chapter 499, Statutes of 2005). The LAO has delivered its
fiscal analysis on all seven contracts.
Proposed Law: AB 478 will approve the recent Memoranda of
Understanding agreed to by the state and Bargaining Units 6, 7,
12, 16, 18 and 19. Details of each agreement are as follows:
Unit 6 (CCPOA)
There are approximately 28,357 full-time equivalents in Unit 6.
The terms of this agreement are from July 3, 2013 through July
2, 2015. The major specifics of the MOU between the state and
Unit 6 are as follows:
Compensation - Cost of Living Increase
Effective January 1, 2015, all employees will receive a 4%
salary increase. Employees will pay 50% of the premium for the
1959 Survivor Benefit.
Health Benefits
The state's monthly contribution to health insurance for Unit 6
members will be equal to eighty percent of the weighted average
of the premiums for the four basic health benefit plans with the
largest enrollment (known as the 80/80 formula). The
contribution rate will be adjusted on January 2014 and on
January 2015.
Miscellaneous
The Unit 6 agreement contains several miscellaneous provisions
including:
AB 478 (Gomez)
Page 10
Clarifies that employees who work holidays get holiday
pay.
The state agrees not to implement any furlough or PLP
during the duration of this contract.
Allows furlough hours to be added to Release Time Bank.
Allows compensable leave credit to be donated to
Catastrophic Time Bank
Increases the meal reimbursement rate by $6.00 per day;
travel rates will be as follows:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
Additionally the agreement contains provisions relating to an
Apprecenticeship Program, "out of class" grievances, substance
abuse screening, weekend military duty, uniforms, badges, salary
advances when delays in payroll occur, Correctional Counselor
duties, and several other provisions.
Unit 7 (CSLEA)
AB 478 (Gomez)
Page 11
There are approximately 6,780 full-time equivalents in Unit 7.
The terms of this agreement will be effective from July 2, 2013
through July 1, 2016. The major specifics of the agreement are
as follows:
Compensation - Cost of Living Increase
All Unit 7 members will receive a 3% general salary increase on
July 1, 2015 with the exception of specified Hospital Police
Officers and Peace Officers who will receive a 4.67% special
salary adjustment.
Health Benefits
The state's monthly contribution will be set at a dollar amount
that equals the 80/80 formula, and will be increased January 1,
2014, January 1, 2015, and January 1, 2016.
Miscellaneous Items
The state will not implement a furlough program or PLP
during the term of this agreement. Employees will be
required to use PLP time from 2010 and 2012 before any
other type of leave.
Business and Travel Reimbursements: the State increased
the breakfast rate to $7.00, lunch to $11.00, dinner to $23
and incidentals to $5.00. The State increased the current
lodging rates which range from $84 - $140 per night to the
following new rates:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
AB 478 (Gomez)
Page 12
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
Unit 9 (PECG)
There are approximately 10,824 full-time equivalents in Unit 9.
The terms of this agreement are from July 2, 2013 through July
1, 2015. The major specifics of the MOU between the state and
Unit 12 are as follows:
Compensation - Cost of Living Increase
Effective July 1, 2015 all Unit 9 members will receive a 3.3%
General Salary Increase.
Additionally, night shift differentials will increase from
$0.40/hour to $0.80/hour for the 6:00p.m. to midnight shift; and
will increase from $0.50/hour to $1.00/hour for the midnight to
6:00a.m. shift.
Health Benefits
The state's contribution will be an amount equal to eighty five
percent of the weighted average of the premiums for the four
basic health benefit plans with the largest enrollment (known as
the 85/80 formula).
Miscellaneous Items
Approval for new engineering classifications will be
sought effective July 1, 2015.
Employees at the DWR will be eligible to participate in
the Operational Availability Incentive Program effective
July 1, 2015.
AB 478 (Gomez)
Page 13
There will not be any furlough or PLP during the term of
this agreement.
Employees will be allowed to cash out up to 20 hours of
vacation or annual leave.
Time off for blood donation will be allowed.
Meal reimbursement will increase by $6.00 per day, and
the new state lodging rates will be:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
UNIT 12 (IUOE)
There are approximately 10,819 full-time equivalents in this
unit. The terms of this agreement are from July 1, 2013 through
July 1, 2015. The major specifics of the MOU between the state
and Unit 12 are as follows:
Compensation - Cost of Living Increase
Effective July 1, 2014, Unit 12 employees will receive a
one-time bonus of $1,200, and then will receive a 3% salary
increase effective July 1, 2015. The bonus and the salary
increase are contingent on the projected state revenues in the
2014-15 budget being determined to be sufficient to fund
existing state obligations. If the funding is determined to be
AB 478 (Gomez)
Page 14
insufficient, all employees in Unit 12 will instead receive a
3.25% salary increase effective July 1, 2015.
Also contingent on available funding on July 1, 2014 are the
following:
Dependent vesting of 75% at initial enrollment and 100%
after 12 months.
Footwear allowance increase of $32
Uniform reimbursement increase of $20
If insufficient funds are available in 2014, those items will
become effective July 1, 2015.
Health Benefits
The State's monthly contribution to the health insurance portion
of BU 12 employee allowance will be set at a dollar amount that
equals the 80/80 formula upon ratification of this contract.
The amounts shall be increased on January 1, 2014, and January
1, 2015.
Miscellaneous Items
CalTrans employees who are not currently paid monthly
will be changed to the monthly pay cycle on July 1, 2014.
The DWR Dispatcher differential is removed.
Subject to department approval and fiscal viability,
employees may cash out up to 20 hours of vacation/annual
leave per fiscal year.
Business and Travel Reimbursements: the State increased
the breakfast rate to $7.00, lunch to $11.00, dinner to $23
and incidentals to $5.00. The State increased the current
lodging rates which range from $84 - $140 per night to the
following new rates:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
AB 478 (Gomez)
Page 15
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
Additionally, the contract makes changes and specifications to
post and bid practices, uniform requirements, and retirement
plans.
Unit 16: (UAPD)
There are approximately 1,517 full-time equivalents in this
unit. The terms of this agreement are from July 1, 2013 through
July 1, 2016. Some of the major specifics of the MOU between
the state and Unit 16 are as follows.
Compensation - Cost of Living Increase
Effective July 1, 2014, contingent on the projected State
revenues of the 2014-15 Budget, all BU 16 represented
classifications will receive a 2% General Salary Increase (GSI).
Employees will then receive a 2% increase effective July 1,
2015 with the following exceptions: a) Physicians and Surgeons
at DSH, DDS, and DVA will receive a 6% general salary increase
effective July 1, 2015, and b) specified Medical Consultants and
Public Health Medical Officers will receive a 3% GSI on July 1,
2015.
However, if the projected state revenues are not achieved
sufficient to provide the GSIs on July 1, 2014, members of Unit
AB 478 (Gomez)
Page 16
16 will receive a 4% salary increase effective July 1, 2015 with
the following exceptions: a) Physicians and Surgeons at DSH,
DDS, and DVA will receive a 8% general salary increase effective
July 1, 2015, and b) specified Medical Consultants and Public
Health Medical Officers will receive a 5% GSI on July 1, 2015.
Health Benefits - Employer Contribution
Upon ratification, the employer health benefits contribution for
each employee will be an amount equal to eighty percent of the
weighted average of the premiums for the four Basic health
benefit plans with the largest enrollment (the 80/80 formula).
Miscellaneous
The state agrees it will not mandate a reduction in work
hours through furloughs or a PLP program for BU 16
employees during the term of this agreement.
The State and Unit 16 agree to present to the
Legislature, as part of the legislation implementing this
MOU, a provision to appropriate funds to cover the economic
terms of this agreement through July 1, 2016.
Business and Travel Reimbursements: the State increased
the breakfast rate to $7.00, lunch to $11.00, dinner to $23
and incidentals to $5.00. The State increased the current
lodging rates which range from $84 - $140 per night to the
following new rates:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
AB 478 (Gomez)
Page 17
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
The agreement also contains provisions relating to the deletion
of longevity pay, payroll errors, grievance and arbitration
procedures, bonus pay for medical consultants, and continuing
medical education requirements.
UNIT 18 (CAPS)
There are approximately 5,413 full-time equivalents in this
unit. The terms of this agreement are from July 1, 2013 through
July 1, 2016. The major specifics of the MOU between the state
and Unit 18 are as follows:
Compensation - Cost of Living Increase
Effective July 1, 2014, contingent on the projected State
revenues of the 2014-15 Budget, all BU 18 represented
classifications will receive a 2% General Salary Increase (GSI).
Effective July 1, 2015, all BU 18 represented classifications
will receive a 2.25% GSI.
If the projected State revenues are not achieved, all BU 18
represented classifications will receive a 4.25% GSI effective
July 1, 2015.
Health Benefits - Employer Contribution
The State's monthly contribution to the health insurance portion
of BU 18 employee allowance will be set at a dollar amount that
equals the 80/80 formula. The amounts shall be increased on
January 1, 2014, January 1, 2015, and January 1, 2016.
Health Benefits - Dependent Coverage
Effective July 1, 2015, employees will become eligible for the
full employer contribution for dependent health coverage after
AB 478 (Gomez)
Page 18
one year of State employment. The State will contribute 75% of
the normal amount for dependents during the vesting period.
Miscellaneous
The state agrees it will not mandate a reduction in work
hours through furloughs or a PLP program for BU 18
employees during the term of this agreement.
The State and Unit 18 agree to present to the
Legislature, as part of the legislation implementing this
MOU, a provision to appropriate funds to cover the economic
terms of this agreement through July 1, 2016.
Business and Travel: the State increased the meal
reimbursement rates by $2.00 per meal per day for a total
allowance of $40/daily. The State increased the current
lodging rates which range from $84 - $140 per night to the
following new rates:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
Effective July 1, 2015 the differential for the 6pm -
midnight shift increases from $0.50 to $1.00 per hour, and
the differential for the midnight - 6:00am shift will
AB 478 (Gomez)
Page 19
increase from $0.40 to $1.25 per hour. Neither portion of
the differential pay will be considerable as compensation
toward retirement calculations.
Additionally, the contract makes specifications as to overtime,
vacation, and post and bid processes.
UNIT 19: (AFSCME)
There are approximately 4,859 full-time equivalents in this
unit. The terms of this agreement are from July 1, 2013 through
July 1, 2016. Some of the major specifics of the MOU between
the state and Unit 19 are as follows.
Compensation - Cost of Living Increase
Effective July 1, 2014, contingent on the projected State
revenues of the 2014-15 Budget, all BU 19 represented
classifications will receive a 1.5% General Salary Increase
(GSI), with the exception of specific rehab counselor positions
which will receive a 4% GSI.
Effective July 1, 2015, all BU 19 represented classifications
will receive a 1.5% GSI, with the exception of specific rehab
counselor positions which will receive a 4% GSI.
If the projected State revenues are not achieved sufficient to
provide increases on July 1, 2014, all BU 19 represented
classifications will receive a 3% GSI effective July 1, 2015,
with the exception of specific rehab counselor positions which
will receive an 8% GSI.
In addition, this contract includes provisions for a study
relating to salary inequities of specified classifications, and
limiting any consequent salary adjustments to .6% of payroll for
AFSCME as of April 2013.
Health Benefits - Employer Contribution
Upon ratification, the employer health benefits contribution for
each employee will be equal to the 80/80 formula.
Health Benefits - Dependent Coverage
AB 478 (Gomez)
Page 20
Contingent upon sufficient revenue being available as determined
by the Department of Finance, effective July 1, 2014, employees
will become eligible for the full employer contribution for
dependent health coverage after one year of employment. The
state will contribute 75% during the vesting period. If it is
determined that there is not sufficient revenue, this increased
formula for dependent health coverage will become available on
July 1, 2015.
Miscellaneous Items
The state agrees not to implement a furlough program or
mandate a PLP during the term of this agreement.
The state and AFSCME agree to present legislation
implementing this MOU including a provision to appropriate
funds through the term of the contract.
Business and Travel Reimbursements: the State increased
the breakfast rate to $7.00, lunch to $11.00, dinner to $23
and incidentals to $5.00. The State increased the current
lodging rates which range from $84 - $140 per night to the
following new rates:
-----------------------------------------------------------------
|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, | |
|Edwards AFB, less the city of |$120 |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, | |
|San Mateo, Santa Clara |$125 |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
-----------------------------------------------------------------
AB 478 (Gomez)
Page 21
Additionally, the agreement contains several provisions relating
to shift differential pay, credential and continuing education
reimbursements, usage of rental vehicles, as well as a plan to
promote recruitment and retention.
Staff Comments: The state is experiencing a severe compaction
problem where state managers and supervisors often earn little
or no higher salary than the employees that they supervise. If
CalHR does not opt to provide a comparable salary increase to
nonrepresented managers and supervisors that has been negotiated
for rank and file employees of Units 6, 7, 12, 16, 18, and 19,
this compaction problem will increase, likely resulting in a
greater shortage of state managers and supervisors.
The last general salary increase state employees received was
3.4% in 2007.
All units have agreed in contract to the new retirement formulas
and the new employee retirement contribution amounts that were
part of the Public Employees' Pension Reform Act which took
effect January 1, 2013.