Today's Law As Amended

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AB-7 State employment: salary freeze. (2011-2012)

As Amends the Law Today


 Section 18005 is added to the Government Code, to read:

 (a) The Legislature finds and declares all of the following:
(1) For several years, the State of California has faced budget deficits requiring cuts and changes in priorities in order to fund state activities.
(2) In recent months, the United States economy has been dealt severe blows due to the credit crisis and the housing market crisis, and their resulting effects upon the financial markets.
(3) The ongoing structural deficit in state finances, complicated by worsening economic developments, has created a fiscal crisis in the governance of the state.
(4) During the current economic recession, California has experienced a dramatic decline in revenues that has forced and is forcing severe cutbacks in spending on state services and programs. The state now faces at least a $25.4 billion shortage.
(5) The 2011–12 state budget, which must resolve the $25.4 billion shortage, is expected to include a series of taxes, cuts, and gimmicks triggered in part by the level of incoming federal dollars and the performance of the state’s economy.
(6) Past fiscal year budgets have seen funding of state services being conducted with gimmicks and borrowing that has only further served to exacerbate our state government fiscal crisis. In addition, state borrowing through bond indebtedness has steadily increased over the past six years. California bond borrowing has gotten to the point where the debt load on the General Fund could in the future easily exceed 10 percent of the State Budget per year. The Legislature finds that those fiscal practices are not sustainable and will only lead to further economic and fiscal crises.
(7) Freezing certain state salaries and bonuses will help alleviate the budget shortfall currently facing the state.
(8) At a time when the California State University system is raising student fees it is imperative that the nearly 500 California State University employees who make in excess of $150,000 per year lead by example and forego raises or bonuses for a period of 24 months.
(9) (A) At a time when the University of California Board of Regents is raising student fees, it is imperative that they show leadership and fiscal responsibility for two years by not granting raises or bonuses for employees that make in excess of $150,000 per year.
(B) The Legislature urges the Regents of the University of California and the Board of Directors of the Hastings College of the Law to adopt the policy expressed in this section for individuals employed by those entities.
(b) Except as provided in subdivision (c), a person employed by the state whose base salary on or after the effective date of this section is greater than one hundred fifty thousand dollars ($150,000) per year shall not receive a salary increase or a bonus while employed in the same position or classification.
(c) Subdivision (b) shall not apply to any of the following:
(1) A person whose base salary or other compensation is governed by an operative memorandum of understanding entered into pursuant to Chapter 10.3 (commencing with Section 3512) or Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, or pursuant to another collective bargaining agreement.
(2) A person employed in a classification that has been designated by the Governor to be necessary for protecting the safety and security of the people of California. The Governor shall make such a designation only by an executive order that lists the name of each individual to whom the order applies, his or her job classification, and the reason for exempting the individual from the requirements of subdivision (a).
(3) A person whose salary is set pursuant to the California Constitution.
(d) For the purposes of this section, a “person employed by the state” means a person employed by the executive, legislative, or judicial branch of state government, an appointee to a state board or commission, or a person employed by the California State University system. A “person employed by the state” does not include local trial court employees, as defined by subdivision (l) of Section 71601.
(e) The Controller may reject a request for a disbursement of funds that violates this section.
(f) This section shall not be enforced to the extent it is preempted by federal law.
(g)  This section shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.