Aug 17, 2012
The recent scandal involving senior ranking parks officials using state funds for unauthorized vacation buyouts has brought new attention to compensation for state workers. Recent budgets have included reductions for public employee compensation costs. This week, California Budget Fact Check examines all employee cost drivers.
The California Budget Fact Check found that:
The 2012-13 budget assumes one-time General Fund savings of $420 million from employee compensation. These savings are achieved by adopting a one day a month unpaid Personal Leave Program (PLP) for most state workers, which represents a 4.6% pay reduction. According to the Legislative Analyst, the savings are one-time in nature and may cost the state more in the long run.
State employees will continue to receive salary increases in 2012-13, at a cost of more than $110 million. Since 2008-09, state employees have received salary increases that have cost state taxpayers more than $1.7 billion.
In the current budget, the state will pay $350 million more than last year in increased retirement costs. No provisions to curtail growing retirement costs were adopted as part of the budget.