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AB-33 State employment: salary freeze. (2009-2010)

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Assembly Bill
No. 33

Introduced  by  Assembly Member Portantino
(Coauthor(s): Assembly Member Block, Caballero, De La Torre, Huffman, Bonnie Lowenthal, Salas)

January 28, 2010

An act to add and repeal Section 18005 of the Government Code, relating to state employment.


AB 33, as introduced, Portantino. State employment: salary freeze.
Existing law requires the Department of Personnel Administration to establish and adjust salary ranges for each class of position in the state civil service, subject to specified merit limits and except as specified. Existing law requires the salary range to be based on the principle that like salaries shall be paid for comparable duties and responsibilities. Existing law allows the state to enter into memoranda of understanding relating to employer-employee relations with employee organizations representing certain state employees.
This bill would, until January 1, 2013, prohibit a person employed by the state whose base salary on or after the effective date of the bill is greater than $150,000 per year from receiving a salary increase while employed in the same position or classification. The bill would exempt from this prohibition a person whose compensation is governed by an operative memorandum of understanding, as described above, a person who has been exempted by Executive order of the Governor, as specified, and a person whose salary is set pursuant to the California Constitution. The bill would make related legislative findings and declarations regarding the state budget deficit.
The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on January 8, 2010.
This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on January 8, 2010, pursuant to the California Constitution.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


 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 a $20.7 billion shortage, a figure that reflects budget shortages from 2009 through 2011, with $6.3 billion in the first year and $14.4 billion in the second year.
(5) The 2010–11 state budget, which must resolve the $14.4 billion shortage, is expected to include a series of taxes and cuts 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 such fiscal practices are not sustainable and will only lead to further economic and fiscal crises.
(7) Freezing certain state salaries will help alleviate the budget shortfall currently facing the state.
(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 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, and a person employed by the California State University system.
(e) The Controller may reject a request for a disbursement of funds that violates this section.
(f) 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.
(g) This section shall not be enforced to the extent it is preempted by federal law.
(h) This section shall remain in effect only until January 1, 2013, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2013, deletes or extends that date.

SEC. 2.

 This act addresses the fiscal emergency declared by the Governor by proclamation on January 8, 2010, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.