BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 790
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 AB 790 (Ruskin) - As Introduced:  February 26, 2009 

          Policy Committee:                              P.E.R. &  
          S.S.Vote:    4-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill implements the salary classifications of state  
          scientist supervisory employees covered by the salary  
          determinations made by the Department of Personnel  
          Administration on April 28, 2008. The bill also:

          1)Specifies that this bill does not provide additional funds to  
            departments to fund these salary adjustments.

          2)Asserts that prior appropriations for the 2008-09 fiscal year  
            for state employee compensation may include amounts for  
            continuing employee benefits that are more than the level of  
            funding for employee benefits reflected in the state's overall  
            2008-09 spending plan. 

          3)Authorizes the Department of Finance to transfer  
            appropriations from one department or program, within the same  
            fund source, to another, to ensure that each department's  
            expenditures will be consistent with the appropriations  
            authorized by the 2008 Budget Act or any other appropriation  
            available to that department in order to mitigate unfunded  
            employee compensation increases during the 2008-09 fiscal  
            year. 

           FISCAL EFFECT
           
          1)Implementation of the DPA recommended increases would result  
            in about $8.8 million annual costs, of which $2 million would  
            be GF and $6.8 million would be other funds.

          2)Funding to implement DPAs recommendations is not included in  








                                                                  AB 790
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            the budget acts for 2008-09 or 2009-10. Provision of these  
            raises will thus raise spending relative to the levels assumed  
            in these budgets. 
           
          COMMENTS
           
           1)Background  . Existing law requires DPA to set and adjust  
            salaries for each classification in state service.  
            Additionally, at least six months before the end of the term  
            of an existing memorandum of understanding (MOU), DPA is  
            required to submit a report containing DPA's finding relative  
            to the salaries of employees in comparable occupations in  
            private industry and other governmental agencies. Existing law  
            also requires that the salary ranges established by DPA be  
            based on the principle that like salaries shall be paid for  
            comparable duties and responsibilities.  

            In 2007, a hearing was held at the DPA at the request of the  
            California Association of Professional Scientists (CAPS)  
            regarding a challenge to the pay plan for about 330  
            supervisory scientists in 14 classifications. On April 28,  
            2008, a Director's Decision was issued by DPA, which  
            recommended specified salary adjustments averaging 21% to the  
            supervising scientist classifications. The 2008-09 and 2009-10  
            budgets did not, however, including funding to cover the cost  
            of implementing the decision. 

          2)Rationale  . The bill is intended to implement DPA  
            recommendations to bring equity between supervisors in  
            scientific classification and engineering classifications.  
            Supporters state that the bill will ensure compliance with the  
            state's statutory requirement that like salaries shall be paid  
            for comparable duties and responsibilities. The sponsor (CAPS)  
            also asserts that "DPA and Finance do not dispute the right of  
            these 14 classifications of employees to the increased  
            salaries, rather they contend that the increased salaries as  
            set by DPA cannot be paid because the Legislature has not  
            appropriated funds to pay the increases out of departmental  
            budgets or in the Budget Act." 

           Prepared by  :    Brad Williams / APPR. / (916) 319-2081