BILL ANALYSIS Ó
AB 2019
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Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
AB 2019
(Santiago) - As Amended March 31, 2016
SUBJECT: Public employment: California State University
employees: salary adjustments
SUMMARY: Establishes the policy of the state to provide step
increases for academic employees of the California State
University (CSU). Specifically, this bill:
1)Finds and declares all of the following:
a) From 2004 to 2014, inclusive, while student enrollment
in CSU increased by 24%, the numbers of CSU faculty
increased by only 14%;
b) Systemwide, over the last decade, the number of
tenure-track and tenured faculty fell by 3%. While faculty
numbers dropped by 338 from 2004 to 2014, the number of
students grew by 75,518;
c) Unlike every other public employee organization in state
government, CSU faculty currently does not have a salary
schedule;
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d) This lack of a salary schedule has resulted in
compression and inversion in faculty salaries;
e) Between increasing workloads and decreasing
remuneration, there are few incentives for university
faculty to stay in the profession; and,
f) It is a matter of parity for these employees to
establish a salary schedule for them in statute.
2)Provides that, in order for the state to recruit and retain
skilled professors, lecturers, librarians, counselors, and
coaches for the CSU system, it is the policy of the state to
provide for intermediate step increases of 2.65%, or the
percentage of the increase, if any, during the period between
the intermediate steps, in the California Consumer Price Index
For All Urban Consumers, whichever is higher, for salary
adjustments for academic employees of CSU.
EXISTING LAW:
1)Establishes the CSU governed by the Board of Trustees
(Trustees) and provides that that the Trustees are responsible
for the rule of government of their appointees and employees
(Education Code Section 89500 et seq.).
2)Provides that officers and employees of the University of
California (UC) and CSU are exempt from civil service
(California Constitution, Article VII, Sec. 4(h)).
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3)Establishes the Higher Education Employer-Employee Relations
Act (HEERA) to provide a statutory framework to regulate labor
relations at UC, CSU, and Hastings College of Law and their
employees; provides the Public Employment Relations Board
(PERB) authority to enforce HEERA (Government Code Sec.
3560-3599).
4)Requires the CSU Trustees to establish a supplemental salary
program and, each fiscal year, (a) identify academic
disciplines for which recruiting and retaining faculty has
been a problem because of faculty salaries not being
competitive, and (b) identify faculty members who shall
qualify for participation in the supplemental savings program.
Provides that the bargaining agreement shall specify
implementation of the plan. Provides that the requirements
are only operative in years where the Budget Act appropriates
funding for this purpose. (EC Sec. 89528).
FISCAL EFFECT: Unknown.
COMMENTS: Purpose of this bill. The sponsor of this bill is the
California Faculty Association (CFA). CFA argues, in 1945, the
Merit Salary Adjustment (MSA) system was created in statute for
state civil service employees. The MSA is a 5% annual salary
increase for employees below the maximum step of their salary
range. The MSA is contingent on satisfactory job performance and
is effective on the employee's anniversary date.
CFA notes that up until the early 1990s, faculty pay increases
mirrored those provided to state civil service employees, and
they received MSAs. In April 1994, however, during collective
bargaining, the CSU Trustees proposed that MSAs be replaced with
discretionary performance pay. Labor fought this proposal but,
after exhausting the statutory impasse procedures of mediation
and fact-finding, the CSU unilaterally withdrew steps on April
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1, 1996. The MSA was replaced with the Service Salary Increase
(SSI). The value of an SSI was cut in half, from 5% to 2.5%.
Perhaps more importantly, SSIs are not automatic like MSAs and
are awarded only in years when they are funded. As of 2016, the
last SSI of 2.65% was granted eight years ago, in 2007-08. As
new faculty is hired at market rates, they may earn more than
experienced faculty, whose salaries have been stagnant.
CSU/CFA agreement. On April 7, 2016, the CSU/CFA tentative
agreement was announced. The agreement includes, among other
provisions, all of the following:
1)All Faculty Unit Employees on active pay status, or on leave,
June 30, 2016 will receive a 5% General Salary Increase;
2)All Faculty Unit Employees on active pay status, or on leave,
July 1, 2016 will receive a 2% General Salary Increase;
3)All Faculty Unit Employees on active pay status, or on leave,
July 1, 2017 will receive a 3.5% General Salary Increase;
4)There shall be a 2.65% SSI during FY 2017/18 effective on the
eligible Faculty Unit Employee's anniversary date; and,
5)Effective 07/01/2016, the minimum increase on promotion shall
be increased from 7.5% to 9%, which shall apply to faculty who
are promoted through the 2015-2016 promotion cycle and in
future Academic Years.
CSU funding. According to the CSU, "in 2015-2016, the state
fully funded the CSU support budget request for the first time
since 2006-2007. The Proposed 2016-2017 CSU Support Budget
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Request is similar to the 2015-2016 request and will allow the
CSU to meet its mandatory cost obligations, fund compensation
increases, and grow systemwide student enrollment by three
percent, while also dedicating funds to student success and
completion priorities. Additionally, significant progress can be
made on infrastructure and deferred maintenance needs. However,
the governor's multi-year funding plan only provides a $139.4
million increase in 2016-2017, which will only fund the minimum
cost increases required by the CSU and allow for one percent
enrollment growth."
In opposing this bill, CSU notes it would cost $48 million
dollars to implement at a step increase of 2.65%. According to
CSU, "without guaranteed funding from the state, AB 2019 would
cause the CSU's budget to erode as it attempted to cover this
proposed mandated salary increases to the detriment of the
campuses and its students. This drain on the CSU's budget would
be magnified whenever the state budget has to be cut due to
downturns in the economy, but CSU would still be required to
provide these increases in salaries."
Purview of the Trustees. CFA argues CSU academic employees
should be treated like other state employees and be provided
annual salary increases similar to those provided to civil
service under the MSA (Government Code Sec. 19832). As
previously noted CSU employees are explicitly exempt from civil
service and instead covered by the HEERA, which provides a
framework to regulate labor relations. Salary terms are a
negotiated item in collective bargaining agreements and subject
to Trustees approval.
CSU Employees Union. The CSU Employees Union (CSUEU), which
represents CSU classified staff, has taken a support if amended
position on this bill, arguing that "only two groups of state
agency employees to not receive salary step increases: CSU
academic employees and CSU classified staff." CSUEU has
requested amendments to add classified staff to the scope of the
bill, to provide equity with academic employees.
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REGISTERED SUPPORT / OPPOSITION:
Support
California Faculty Association (Sponsor)
California Labor Federation
Opposition
California State University
Analysis Prepared by:Laura Metune / HIGHER ED. / (916) 319-3960
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