Bill Text: CA AB1787 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State employment: salary freeze.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-07-05 - From committee without further action pursuant to Joint Rule 62(a). [AB1787 Detail]

Download: California-2011-AB1787-Introduced.html

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BILL NUMBER: AB 1787	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Portantino

                        FEBRUARY 21, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1787, 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, 2015, prohibit a person employed
by the state whose base salary on or after the effective date of the
bill is greater than $100,000 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, or a person whose salary is set pursuant to
the California Constitution. The bill would also authorize the
Controller to reject a request for disbursement of funds that
violates these provisions. The bill would make related legislative
findings and declarations regarding the state budget deficit.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 18005 is added to the Government Code, to read:

   18005.  (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 years, 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 projected $9-$10 billion shortage.
   (5) The 2012-13 Budget Act, which must resolve a multibillion
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 $100,000 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 $100,000 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 thousand dollars ($100,000) 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,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.