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2010 Legislative Update

2010 Legislative Update. What is Local 1000’s 2010 Legislative Agenda?. Top Priorities State Budget Legislation Pension Reform Initiatives. Governor’s Proposed Budget . 5/5/5 plan: Increase in PERS contributions by employee (5%) “Workforce cap” (5%) Salary reduction (5%) “Trigger”

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2010 Legislative Update

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  1. 2010 Legislative Update

  2. What is Local 1000’s 2010 Legislative Agenda? Top Priorities • State Budget • Legislation • Pension Reform • Initiatives

  3. Governor’s Proposed Budget 5/5/5 plan: • Increase in PERS contributions by employee (5%) • “Workforce cap” (5%) • Salary reduction (5%) • “Trigger” • Additionally: • Reduction of $152.8 million by contracting for lower cost health care coverage either directly from an insurer or through CalPERS • Decrease of $98.1 million for pre-funding health and dental for Annuitants

  4. LAO’s Analysis of Governor’s Proposals • Increase in PERS contributions by employee (5%) • Analysis: PERS increase is “risky” if done legislatively • Recommendation: • pension reform for new employees • Collective bargaining • “Workforce cap” (5%) • Analysis: Workforce cap won’t work • Recommendation: Don’t do it but if done, don’t touch CDCR

  5. LAO’s Analysis of Governor’s Proposals Salary reduction (5%) • Analysis: Pay cut is the only way to go • Recommendation: CUT STATE EMPLOYEE SALARIES

  6. Furlough Legislation AB 1215 (De La Torre) • This bill would exempt public employees from furloughs who are in positions that are funded at least 95% by sources other than the General Fund . AB 1215 is currently on the Senate’s Third Reading File and requires a majority vote to be sent to the Governor’s desk. SBX8 29 (Steinberg) • Same bill but in Extraordinary Session that the Governor called on January 8, 2010 – Legislature must convene by February 22, 2010

  7. Other Legislation AB 1699 (Hernandez) • Continuous Appropriations bill in the event a budget is not in place by June 15, 2010 • Reincarnation of AB 1125

  8. MOU Update • Assembly Bill 964 • Failed to pass Assembly by January 31st deadline (because it was a two-year bill) • Assembly Bill 88 • 2 year bill • Location: Senate Floor • Next Steps: Need 2/3 approval from the Senate by August 31, 2010 to send to the Governor’s desk.

  9. Local 1000 Sponsored Bills • EDD • SCIF • Transparency • Rural Health Care Equity Program • CDCR • BOE • SPB • State Bar • MOU

  10. Pension Reform • Return to pre SB 400 retirement formulas • Repeal SB 183

  11. 2010 Initiatives Ballot Measurers Certified for June 8 Primary • Property tax: new construction exclusion: seismic retrofitting. • Elections: open primaries. • Political Reform Act of 1974: California Fair Elections Act of 2008. • New Two-Thirds Vote Requirement for Local Public Electricity Providers. Initiative Constitutional Amendment. • Allows Auto Insurance Companies to Base Their Prices in Part on a Driver’s History of Insurance Coverage. Initiative Statute.

  12. Questions

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