BILL ANALYSIS
SB 86
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SENATE THIRD READING
SB 86 (Yee and Romero)
As Amended September 4, 2009
Majority vote
SENATE VOTE : Vote not relevant
SUMMARY : Prohibits the California State University (CSU) Board
of Trustees (Trustees) from increasing the monetary compensation
or approving payment of a bonus for any executive officer in any
year in which the amount of General Fund monies appropriated to
that segment is less than or equal to the amount appropriated in
the immediately preceding fiscal year and requests the
University of California (UC) Board of Regents (Regents) comply
with these provisions. Specifically, this bill :
1)Prohibits the CSU Trustees from increasing the monetary
compensation of or approving payment of a monetary bonus to
any executive officer in any fiscal year in which the amount
of state General Fund monies appropriated in the annual Budget
Act to that segment is equal to or less than the amount
appropriated in the immediately preceding fiscal year.
2)Defines "executive officer" as including, but not limited to:
a) For CSU: The CSU Chancellor, a vice chancellor or an
executive vice chancellor, the general counsel, the
Trustees' secretary, or the president of an individual
campus.
b) For UC: The UC president, a vice president, the
treasurer or assistant treasurer, the general counsel, the
UC Regents' secretary, or the chancellor of an individual
campus.
3)Defines "monetary compensation" as including, but not limited
to, a salary, a vehicle allowance, and a housing allowance.
4)Applies these compensation restrictions only to executive
officers entering into a new or renewing an existing
employment contract on or after January 1, 2010.
5)Requests the UC Regents to comply with this prohibition.
EXISTING LAW requires meetings of state bodies, including UC and
SB 86
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CSU, to be open and public, requires state bodies to publish a
specific agenda and notice of each meeting at least 10 days in
advance of the meeting, and requires executive compensation, as
defined, to be publicly disclosed.
FISCAL EFFECT : Unknown. However, the Assembly Appropriations
Committee analysis of an identical bill stated that "Attempting
to isolate the potential fiscal effects of this bill is
speculative at best. Under the current circumstances, UC's and
CSU's General Fund appropriations have been reduced
significantly and the segments' actions to freeze senior
management salaries and implement furloughs go beyond even the
restrictions in this bill, thus one could argue that the
segments' severe budget constraints served the same purpose as
this bill without deleting all discretion."
COMMENTS : This bill is identical to SB 217 (Yee), of 2009,
which was held in the Assembly Appropriations Committee.
Background: UC has 10 campuses, five medical centers, more than
200,000 students, and over 100,000 employees. CSU has 23
campuses, more than 400,000 students and over 50,000 employees.
Each is the largest system of its kind in the world.
Existing restrictions on state employees' executive
compensation: The Department of Personnel Administration sets
and adjusts salaries for each classification in state service.
There are currently no restrictions on executive compensation
for state employees.
National comparison of UC and CSU executive salaries: The CSU
Trustees and UC Regents determine the compensation levels for
executive personnel. Compensation typically reflects
compensation levels paid at comparable institutions nationwide.
In its most recent survey of executive compensation (October
2004), the California Postsecondary Education Commission found
that CSU Presidents lagged national comparators by 37.8% while
UC Chancellors earned 37.5% less than their colleagues in other
states.
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960
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