BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 879|
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                                 UNFINISHED BUSINESS


          Bill No:  SB 879
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  8/27/14
          Vote:     21

           
           SENATE FLOOR  :  Not relevant

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Budget Act of 2014:  state employees:  memoranda of  
          understanding

           SOURCE  :     Author


           DIGEST  :    This bill provides legislative ratification for  
          memoranda of understanding (MOU) agreements between the state  
          and various state Bargaining Units (BU).

           Assembly Amendments  delete the Senate version of the bill, which  
          expressed legislative intent to enact statutory changes related  
          to the Budget Act of 2014, and instead add the current language.

           ANALYSIS  :    

          This bill:

           1.Provides Legislative Approval of MOUs  .  Approves provisions of  
            MOUs entered into between the state and BU 2, the California  
            Attorneys, Administrative Law Judges, and Hearing Officers in  
            State Employment, on August 14, 2014; BU 10, the California  
                                                                CONTINUED





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            Association of Professional Scientists, on August 12, 2014; BU  
            13, the International Union of Operating Engineers, Stationary  
            Engineers, on August 21, 2014; and an addenda to a MOU entered  
            into by BU 8, the Department of Forestry Firefighters, on  
            August 26, 2014.

           2.Provides Augmentations to Fund Agreements  .  Augments Items  
            9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section  
            2.00 of the 2014 Budget Act in order to provide funding for  
            the MOU agreements, as follows:

                  BU 2  . $12.6 million ($3.3 million General Fund (GF)) for  
               provisions of the BU 2 agreement related to a July 2014  
               general salary increase (GSI) of 2% (the agreement includes  
               an additional GSI of 2.5% in July 2015), and health benefit  
               cost increases.

                  BU 10  .  $3.1 million ($561,000 GF) for provisions of the  
               BU 10 agreement related to a $1,000 bonus for each employee  
               (the agreement also includes a GSI of 3% in July 2015).

                  BU 13  .  $2.4 million ($1.6 million GF) for provisions of  
               the BU 13 agreement related to a July 2014 GSI of 2% (the  
               agreement includes an additional GSI of 2.5% in July 2015),  
               a $250 bonus for each employee, health benefit increases,  
               and a 2% water and wastewater certification pay  
               differential.

                  BU 8  .  $10.2 million ($6.4 million GF) for provisions of  
               the BU 8 agreement related to a January 2015 GSI of 4%.

           Background
           
          The Legislature passed the 2014 Budget Act (SB 852, Leno,  
          Chapter 25, Statutes of 2014) on June 15, 2014.  The bill was  
          signed by the Governor on June 20, 2014.  The bill provided  
          legislative ratification for subsequent MOU agreements between  
          the state and various state bargaining units and augments  
          specific budget items related to employee compensation to fund  
          provisions of these agreements. 

          FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No








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          According to the Senate Budget and Fiscal Review Committee,  
          augments the 2014 Budget Act by appropriating $28.3 million  
          ($11.9 million GF).


          AL/JA:k  8/29/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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