|
View Current Hotline
|
October 27, 2011 |
|
Governor
Brown
today
issued
his
12-point
proposal
to
make
changes
to
the
CalPERS
and
other
public
employee
pension
plans.
Most
of
the
changes
apply
to
new
employees
but
some
would
cover
everyone.
It
is
similar
to
what
he
proposed
earlier
this
year
in
his
unsuccessful
efforts
to
negotiate
an
agreement
with
Legislative
Republicans
in
exchange
for
continuing
previously-approved
tax
increases.
The
Governor
plans
to
submit
his
proposal
to
the
Legislature
for
their
consideration.
As
all
of
the
proposals
would
reduce
retirement
or
health
benefits
or
increase
employee
costs,
PECG
will
be
heavily
involved
in
the
legislative
process.
Initially,
major
concerns
are
that
the
proposals
would
adversely
affect
the
overall
compensation
package,
have
not
been
proposed
at
the
bargaining
table
and,
for
new
employees,
a
substantial
portion
of
their
reduced
pension
benefits
would
be
at
the
mercy
of
Wall
Street
and
the
fluctuating
stock
market.
The
following
summarizes
the
Governor’s
proposals:
-
Employees will pay at least 50% of pension costs, which could increase employee contributions.
-
For new employees, the pension would be a combination of a reduced defined benefit plan, a defined contribution (401(k)-type) plan, and Social Security, with an overall lower benefit.
-
All new employees would operate under a formula at which the maximum benefit at retirement would be increased to the current Social Security age of 67.
-
New employees would be placed in a formula where retirement is based on the highest three years of compensation (which is currently the case for most state employees).
-
The pension benefits would be based on regular recurring pay, not overtime, shift pay, or other non-recurring payments (which is also currently the case).
-
For all employees, post-retirement employment would be limited to 960 hours per year.
-
For all employees, future pension benefits would be forfeited in the event of a felony conviction for an action taken in the course of public duty.
-
Pension benefit increases could not be applied retroactively.
-
There will be no pension "holidays" or periods of not making payments for employers or employees.
-
Eliminate "airtime", which currently allows employees to purchase additional years of service credit if they pay both the employer and employee contribution.
-
Allow the Governor to appoint two additional members to the CalPERS Board of Administration.
-
For new state employees, changes to the retiree health care benefits would change the vesting requirement to 50% at 15 years and 100% at 25 years to receive the full state contribution; retirees would have the same state contribution as active employees; and those eligible for Medicare would be required to enroll.
As
noted,
this
is a
proposal
by
the
Governor
to
the
Legislature.
PECG
will
be
heavily
involved
to
ensure
that
PECG
members
are
represented
and
their
retirement
benefits
are
protected.
|
|
October 25, 2011 |
|
While
Federal
funding
for
transportation
has
been
extended
through
March
2012,
Congress
continues
to
wrestle
with
a
longer
term
solution.
Essentially,
Democrats
wish
to
at
least
retain
the
current
funding
levels
for
distribution
of
transportation
funding
to
the
States;
the
President
wishes
to
greatly
increase
infrastructure
spending
to
create
jobs
and
help
the
construction
industry
while
repairing
aging
infrastructure;
and
Republicans
have
sought
to
reduce
Federal
funding
to
the
declining
level
of
revenue
generated
by
the
Federal
Gas
Tax.
Recently,
however,
Congressional
Republicans
are
now
supporting
a
multi-year
bill
which
would
retain
current
funding
levels.
The
total
would
be
$285
billion
over
six
years,
which
could
be
as
much
as
$100
billion
more
than
Federal
gas
and
other
transportation
tax
revenues.
Meanwhile,
Senator
Barbara
Boxer
has
proposed
a
two
year
$109
billion
transportation
bill
as
an
interim
measure
in
case
support
for
a
longer
term
solution
doesn’t
develop.
All
this
will
be
hashed
out
in
Congress
in
the
coming
weeks
and
months.
|
|
September 13, 2011 |
|
The
House
of
Representatives
has
passed,
and
the
Senate
is
expected
to
approve,
a
six
month
extension
of
federal
funding
for
highway
and
other
programs.
Without
the
extension,
federal
funding
for
transportation
and
the
federal
gas
tax
would
end
on
September
30.
Under
the
extension,
current
funding
levels
and
collection
of
the
federal
gas
tax
will
continue,
protecting
$23
billion
in
active
state
and
local
transportation
projects
in
California.
Periodically,
the
Congress
and
President
put
together
a
five
to
six
year
federal
funding
program
for
transportation
dollars
to
be
provided
to
the
states.
Typically,
such
reauthorization
is
extended
for
a
year
or
two
after
it
expires
while
a
new
bill
is
finally
agreed
upon.
In
recent
years,
the
federal
gas
tax
and
other
related
revenues
have
been
insufficient
to
continue
to
fully
fund
the
approved
transportation
program.
Thus,
Congress
periodically
appropriated
additional
money
to
maintain
the
authorized
funding
levels.
That
became
a
contentious
issue
after
the
previous
multiyear
funding
bill
expired
in
2009.
Should
federal
transportation
funding
drop
to
the
gas
tax
revenue
levels,
about
a
30%
reduction,
or
should
Congress
continue
to
authorize
additional
funds
to
maintain
or
increase
the
program
level?
Since
2009,
there
have
been
eight
extensions.
This
latest
legislation
will
provide
current
funding
levels
through
March
2012.
In
the
interim,
Congress
and
the
President
will
continue
to
try
to
reach
agreement
on
an
appropriate
funding
level
and
revenue
mechanism
for
federal
funding
for
transportation.
On
the
revenue
side,
PECG
has
had
numerous
meetings
with
federal
administration
officials
and
key
members
of
Congress,
supporting
adequate
funding
for
transportation
programs.
On
the
spending
side,
PECG
has
urged
an
end
to
the
ongoing
waste
of
tax
dollars
through
outsourcing
of
engineering
and
related
services
at
twice
the
cost.
PECG
also
opposes
the
elimination
of
competitive
bidding
for
construction
contracts
through
design
build
and
public
private
partnerships
which
double
the
cost
of
transportation
infrastructure
projects.
PECG
is
also
sponsoring
federal
legislation
which
would
require
engineers
who
work
for
the
public,
not
private
contractors,
to
perform
construction
inspection
on
federally-funded
projects.
|
|
August 3, 2011 |
|
The
new
Unit
9
Memorandum
of
Understanding
or
MOU
is
now
up
on
the
PECG
website
at
www.pecg.org,
click
on
New
Unit
9
MOU.
Copies
of
the
new
MOU
are
being
mailed
to
all
PECG
members
and
fee
payers.
If
you
do
not
receive
your
copy
by
the
end
of
August,
please contact the PECG Sacramento Office to be sure
that
we
have
your
current
mailing
address.
|
|
July 1, 2011 |
|
The
employee
contribution
to
the
retirement
plan
increased
in
the
June
pay
period
for
Unit
9
employees.
There
have
been
questions
regarding
why
that
occurred
and
whether
the
amount
being
deducted
from
paychecks
by
the
State
is
correct.
Under
the
prior
MOU
and
for
many
years
before
that,
the
employee
contribution
to
CalPERS,
the
retirement
plan,
was
5%
of
the
salary
above
$513.
Included
in
the
new
MOU
is a
provision
that
the
employee
contribution
would
increase
by
3%
to a
total
of
8%
of
the
amount
of
salary
above
$513
per
month.
In
July
2013,
all
salary
ranges
will
be
increased
by
3%.
For
the
June
payroll
period
only,
there
was
an
additional
deduction.
The
increased
contribution
to
PERS
was
effective
May
16
but
was
not
reflected
in
the
May
payroll.
Thus,
in
June,
instead
of
deducting
8%
of
the
salary
above
$513,
the
checks
reflected
a
9.5%
deduction
of
the
amount
in
excess
of
$513.
The
additional
1.5%
was
to
make
up
for
the
half
month
in
May
for
which
no
additional
deduction
was
withheld.
Then,
in
July
and
thereafter,
the
deduction
will
be
8%
of
the
amount
of
salary
above
$513
per
month.
Some
members
reported
that,
in
June,
the
deduction
for
PERS
was
8.8%
of
salary.
That
may
have
been
correct,
but
the
calculation
was
based
on
9.5%
of
the
amount
of
salary
above
$513.
If
the
deduction
for
your
paycheck
was
done
improperly,
contact
the
PECG
office
and
we
will
seek
to
correct
the
problem.
Also,
employees
who
are
in
safety
retirement,
rather
than
the
general
miscellaneous
formula,
had
their
deduction
based
on a
different
formula.
|
.............................
|
June 28, 2011 |
The
Legislature
and
the
Governor
have
reached
agreement
on a
State
Budget
for
the
upcoming
fiscal
year
which
begins
on
July
1.
On
June
15,
the
Legislature
passed
a
budget
which
the
Governor
vetoed.
Based
on a
voter-approved
ballot
measure
last
year,
State
Controller
John
Chiang
began
docking
the
pay
of
the
legislators
because
the
budget
was
not
balanced
as
required
by
the
Constitution.
On
June
27,
the
Governor
threw
in
the
towel
on
his
efforts
over
the
last
several
months
to
convince
two
Republicans
in
each
house
to
agree
to
let
the
people
vote
on
whether
or
not
to
extend
current
tax
levels.
The
Democrats
can
pass
a
budget,
which
only
requires
a
majority
vote,
but
adding
or
extending
revenue
measures
requires
a
two-thirds
vote,
meaning
two
Republicans
in
each
house
must
support
it.
When
the
Governor
was
unable
to
get
any
Republican
support,
he
and
Democratic
leadership
agreed
on a
State
Budget
with
program
cuts,
a
certain
amount
of
borrowing
and
shifting
of
funds,
and
some
optimistic
revenue
projections
based
on
surprisingly
high
tax
receipts
during
the
last
couple
of
months.
While
the
budget
agreement
is
not
yet
in
print,
it
appears
that
it
does
not
include
Republican
goals
of
slashing
public
employee
pensions,
further
reducing
state
employee
compensation,
imposing
a
state
budget
cap
for
future
years,
and
relaxing
regulations
on
businesses.
The
budget
does
contain
some
triggers
which
could
result
in
further
program
cuts,
including
shortening
the
school
year,
if
projected
revenue
does
not
materialize.
It
is
expected
that
the
budget
will
be
passed
and
signed
by
the
Governor
no
later
than
June
30.
Meanwhile,
vehicle
mileage
reimbursement
for
state
employees
will
increase
to
55.5
cents
effective
July
1.
This
is
in
keeping
with
the
new
federal
reimbursement
rate.
|
|
June 15, 2011 |
|
The
PECG-sponsored
one
hour
documentary,
The
Next
Frontier:
Engineering
the
Golden
Age
of
Green,
analyzes
the
important
role
of
government
and
public
engineers
in
addressing
climate
change,
clean
energy,
and
green
technology.
The
documentary,
which
includes
a
description
of
the
work
performed
by
California
state-employed
engineers
and
related
professionals,
has
been
broadcast
on
ABC,
other
networks,
and
PBS
to
90%
of
the
nation's
television
markets.
It
is
also
a
part
of
the
curriculum
in
many
high
schools
and
middle
schools
throughout
the
nation.
The
Next
Frontier
has
just
received
a
new
honor.
On
June
11
it
was
awarded
an
Emmy
for
Best
Documentary
and
a
second
Emmy
for
Best
Graphics
and
Animation
by
the
Northern
California
Chapter
of
the
National
Academy
of
Television
Arts
and
Sciences.
PECG's
three
previous
documentaries,
which
address
the
role
of
State
Engineers
in
designing
and
constructing
bridges,
have
received
three
Emmys
in
similar
categories.
The
Next
Frontier
will
now
be
eligible
to
compete
next
year
for
a
national
Emmy.
PECG
appreciates
the
fine
work
of
Filmsight
Productions,
animator
Charlie
Canfield,
and
the
PECG
leaders,
members,
and
staff
who
worked
hard
to
create,
produce,
and
distribute
the
documentary.
|
.............................
|
June 9, 2011 |
|
The
new
Unit
9
Memorandum
of
Understanding
(MOU)
includes
a
provision
for
two
days
(16
hours)
of
Professional
Leave
per
fiscal
year.
The
leave
is
requested
and
approved
in
the
same
manner
as
vacation
or
annual
leave.
PECG
and
DPA
have
agreed
that
Professional
Leave
may
be
used
in
one
hour
increments.
DPA
has
also
agreed
to
allow
employees
who
used
vacation
on
or
after
April
1,
2011,
to
change
the
time
to
Professional
Leave.
Both
days
(16
hours)
must
be
used
no
later
than
June
30,
2011,
or
they
will
be
lost.
They
are
not
carried
over
and
cannot
be
cashed
out.
Then,
on
July
1,
2011,
two
more
days
of
Professional
Leave
will
be
earned
and
must
be
used
in
the
following
twelve
months,
no
later
than
June
30,
2012.
In
some
departments,
timesheets
will
show
a
zero
balance
for
Professional
Leave.
As
time
is
used,
that
balance
will
be
changed
to
reflect
minus
16
hours.
Then,
at
the
end
of
the
fiscal
year
on
June
30,
the
balance
will
be
reset
to
zero.
That's
a
little
confusing,
but
that's
how
some
departments
are
doing
it.
This
should
not
be
confused
with
the
Personal
Leave
Program,
which
is
accumulated
at
one
eight
hour
day
per
month,
every
month,
from
April
2011
through
March
2012.
That
leave
has
no
cash
value
and
cannot
be
cashed
out
but
does
not
have
to
be
used
at
any
particular
time,
as
long
as
it
is
no
longer
on
the
books
when
you
separate
from
state
service,
such
as
through
retirement.
Thus,
the
important
point
to
remember
is
to
use
the
two
days
(16
hours)
of
Professional
Leave
before
the
end
of
June
(this
month),
but
the
Personal
Leave
time
(earned
at
one
day
per
month)
may
be
carried
over.
|
.............................
|
May 19, 2011 |
|
The
Legislature
has
passed
and
the
Governor
has
signed
Senate
Bill
151
which
are
the
final
steps
in
ratification
and
implementation
of
the
new
Unit
9
Memoranda
of
Understanding
(MOU).
This
means
employees
may
now
use
the
two
days
of
Professional
Leave
which
must
be
taken
by
June
30.
Professional
Leave
is
requested
and
approved
in
the
same
manner
as
vacation.
The
charging
code
is
PT.
There
will
be
an
increased
employee
contribution
to
PERS.
PECG
and
DPA
are
resolving
the
details
of
implementing
that
payroll
deduction.
More
information
will
be
provided
shortly
by
PECG
on
implementation
of
the
new
MOU
provisions.
|
.............................
|
May 16, 2011 |
|
On
May
16,
the
Assembly
approved
Senate
Bill
151,
which
includes
the
new
Unit
9
Memorandum
of
Understanding
or
MOU
negotiated
by
PECG
and
DPA,
as
well
as
five
other
State
MOUs.
The
Bill
will
now
go
to
the
Governor
for
his
signature.
At
that
point,
all
twenty-one
State
Bargaining
Unit
MOUs
will
be
approved.
----------------------------------------
Governor
Jerry
Brown
has
presented
his
May
Revision
to
his
January
State
Budget
proposal.
Essentially
the
May
Revise,
an
annual
event,
provides
the
latest
revenue
estimates
and
expenditures
needed
to
assist
the
Legislature
in
developing
a
State
General
Fund
Budget
for
the
upcoming
fiscal
year
which
begins
on
July
1.
In
January,
the
budget
deficit
for
the
current
and
next
fiscal
year
totaled
$26.6
billion.
About
half
of
that
was
eliminated
through
legislation
cutting
various
programs,
along
with
borrowing
some
special
funds
and
delaying
loan
repayments.
On
the
good
news
side,
it
appears
revenues
will
be
up
about
$6.6
billion
over
the
current
and
next
fiscal
year.
The
remaining
deficit
which
needs
to
be
addressed
amounts
to
$10.8
billion.
It
appears
that
most
of
the
shortfall
would
be
eliminated
if
there
is a
special
election
later
this
year
and
the
voters
approve
a
ballot
measure
to
continue
some
of
the
tax
increases
which
are
scheduled
to
expire
in
June.
If
that
occurs,
most
state
programs
involving
PECG
members
would
not
be
substantially
affected.
One
exception
would
be
State
parks;
70
of
those
are
scheduled
to
be
closed
over
the
next
14
months
under
the
Governor’s
proposal.
His
proposed
budget
would
cut
5,500
state
positions,
but
it
appears
very
few
of
those
are
in
programs
employing
PECG
members.
After
all
of
the
criticism
from
various
agencies,
especially
the
Legislative
Analyst,
that
Caltrans
is
grossly
overstaffed,
the
Governor’s
budget
would
actually
increase
Capital
Outlay
Support
by
122
positions.
|
.............................
|
May 10, 2011 |
|
The
Legislative
Analyst
has
recommended
that
responsibility
for
the
High
Speed
Rail
Project
be
shifted
from
the
High
Speed
Rail
Authority
to
Caltrans.
In
recommending
that
the
Administration's
request
for
$185
million
for
consultants
be
reduced
to
$7
million,
the
report
criticized
the
Authority
for
employing
only
one
State
employee
for
every
thirty-three
consultants.
The
report
criticized
the
High
Speed
Rail
Authority
for
lack
of
accountability,
weaknesses
in
its
structure,
inadequate
monitoring,
paying
consultants
without
verifying
that
the
work
was
actually
performed,
lack
of
expertise
on
the
Board,
basing
decisions
on
faulty
assumptions,
and
selecting
an
infeasible
initial
rail
line
segment.
Shifting
the
project
to
Caltrans
would
increase
the
odds
that
the
project
will
be
successful
because
of
Caltrans'
decades
of
experience
in
delivering
large
transportation
infrastructure
projects,
a
large
engineering
staff
in
place,
and
the
ability
to
better
integrate
the
project
into
the
State's
transportation
system.
As
the
Analyst
said,
Caltrans
would
be
the
best
choice
for
acquiring
property,
negotiating
and
overseeing
contracts,
developing
public
support,
and
using
Caltrans
staff
to
perform
many
project
tasks.
PECG
looks
forward
to
working
with
the
Legislature,
the
Administration,
and
the
Legislative
Analyst
to
implement
these
recommendations.
|
.............................
|
May 3, 2011 |
|
Senate Bill 151, which would provide legislative approval for the Memorandum of Understanding (MOU) for Unit 9 and five other State Bargaining Units, has been approved by the State Senate and now moves on to the Assembly. For 30 years, labor agreements between the Governor and organizations representing State employees have received automatic approval from the Legislature. That is no longer the case.
When SB 151 was heard in Senate Committees, it passed on straight party lines, with all Democrats voting yes and all Republicans voting no. In Committees, bills only need majority approval. However, on the Senate floor, because the bill would take effect immediately, a two-thirds super majority is required. This means 27 out of 40 Senators must vote yes.
There are 25 Democrats in the State Senate. They all voted yes. Republican State Senator Sam Blakeslee also voted yes. As the other 14 Republicans voted no, that left the bill one vote short of the required 27 votes for approval.
Later in the day on Monday, May 2, Republican State Senator Anthony Cannella switched his vote from no to yes. That provided the 27th vote necessary to pass the MOU bill in the Senate and to send the bill on to the Assembly.
Increasingly, the Legislature has become a place where ideology and politics rule to the exclusion of everything else. Even something as previously automatic as approving a negotiated labor contract has now become a battleground. This is not a good sign as Governor Brown and Democratic legislators continue to try to put together a State Budget which addresses the remaining $13 billion General Fund deficit. While the Democratic majority can pass a budget, they do not by themselves have the authority to raise the revenue to fund State programs. That requires some Republican participation and support which thus far has not materialized.
|
.............................
|
April 25, 2011 |
|
At noon today, Monday, April 25, the Senate Appropriations Committee approved Senate Bill 151, which would implement the new Memorandum of Understanding (MOU) for Unit 9 and five other State Bargaining Units. The approval was on straight party lines, with six Democrats voting yes and 3 Republicans voting no. The next step is a full vote on the Senate floor, which is currently scheduled for April 28. If it passes, it will go to the Assembly for similar action, then to the Governor for a signature.
In the meantime, when do the provisions of the new MOU take effect? Thus far, the Department of Personnel Administration (DPA) has ended the furloughs in March and implemented a Personal Leave Program (PLP) which amounts to one day of furlough per month for the next 12 months. The increased employee contribution of 3% of salary to the retirement plan will not take effect until the first of the month following legislative ratification.
There is a bit of a difference of opinion over the new provision of two days of Professional Leave per fiscal year. DPA has instructed departments not to allow employees to utilize that leave until after legislative ratification of the MOU. PECG's view is that the provision was effective April 1 and the leave should now be available to employees. We are discussing this difference of opinion with DPA.
The new Informer, number 4, discusses the various aspects of time off. The charging codes listed there for Personal Leave and Professional Leave were reversed in error. Actually, Personal Leave (the new PLP program) should be charged to PL/11. Professional Leave, when it becomes available for usage, will have a charge code of PT. Click here to view the corrected page: http://www.pecg.org/Communications/Informer-correction.pdf
|
.............................
|
April 8, 2011 |
|
The
new Memorandum of Understanding
(MOU) for
Unit 9 has been
overwhelmingly approved by the PECG
membership, with 93.4% voting yes and 6.6% voting no.
The Legislature
must also adopt the MOU. The vehicle
for doing so is Senate Bill 151, which also includes the
MOUs for the other five Bargaining Units which reached
agreement with the Governor in the last month. As
currently written, the Bill will require a two-thirds
approval in each House of the Legislature.
|
.............................
|
April 4, 2011 |
|
If you are a PECG member in State Bargaining Unit 9, and you have not yet voted to approve or reject the proposed new Memorandum of Understanding or MOU, please do so IMMEDIATELY!
Half of the PECG members must vote in order to count the ballots to determine if the contract is approved or not. If you didn't receive a ballot in the mail, contact a PECG Section Officer or any PECG office to get one.
|
.............................
|
April 1, 2011 |
|
If you are a PECG member in State Bargaining Unit 9, and you have not yet voted to approve or reject the proposed new Memorandum of Understanding or MOU, please do so IMMEDIATELY!
Half of the PECG members must vote in order to count the ballots to determine if the contract is approved or not. If you didn’t receive a ballot in the mail, contact a PECG Section Officer or any PECG office to get one.
|
.............................
|
March 24, 2011 |
|
Now that your PECG Bargaining Team and the Department of Personnel Administration, representing the Governor, have reached agreement on a new Memorandum of Understanding (MOU) for Unit 9, PECG member ratification informational meetings are being held throughout the State during the last two weeks of March. PECG members in Unit 9 should have received, by email, information on the new contract. Ballots were mailed on March 22 to members' homes to allow them to vote by secret ballot on approving or rejecting the new MOU. Members should also have received notification of the ratification informational meeting in their geographic area so they can attend, learn more about the contract, and ask questions. All Unit 9 employees are allowed one hour of paid release time to attend the meeting, in addition to the lunch break, as well as necessary travel time. Lunch is being provided by PECG.
If you are a PECG member in Unit 9, it is important for you to vote because ballots won't be counted until at least 50% of the 9,100 PECG members in the Unit have cast their ballots. If you do not receive your ballot by Monday, March 28, please contact the PECG office in Sacramento to request another ballot and be sure that we have your correct mailing address.
During the past several years, PECG has filed several lawsuits. One alleges that the previous contract required that raises based on the salary survey continue in 2009 and 2010 because the contract specified that raises would occur in July 2008 and thereafter. Another lawsuit challenges the third day of furloughs and their application to special fund employees. Both of these lawsuits are continuing to be pursued by PECG's attorneys in court. There was a newspaper blog report that the furlough lawsuit had been dropped but that was incorrect.
|
.............................
|
March 11, 2011 |
|
The
efforts
to
destroy
public
employee
pension
plans
continue
to
rage
in
California
and
throughout
the
nation.
Last
year,
the
pension
formula
for
new
hires
was
reduced
and
most
labor
contracts
for
state
employees
included
increased
employee
contributions
to
the
plan.
However,
that's
not
enough
for
those
who
attack
the
people
who
serve
the
public.
The
latest
report
from
CalPERS
shows
that
less
than
2%
of
the
State's
General
Fund
Budget
is
used
to
pay
for
state
employee
pension
costs,
but
newspaper
editorials
and
blogs
falsely
claim
the
pension
costs
are
driving
governments
into
bankruptcy.
To
address
the
$26
billion
State
Budget
shortfall,
Governor
Brown
is
seeking
a
ballot
measure
in
June
to
continue
tax
rates
at
the
current
level,
rather
than
having
them
drop
on
June
30.
Legislative
Republicans
oppose
allowing
the
voters
to
vote
on
the
tax
measure
and
are
seeking
what
they
call
pension
reform
as
the
trade-off.
Although
they
know
it
is
unconstitutional,
they
want
the
pension
formula
for
current
employees
to
be
reduced.
They
also
seek
imposition
of a
401(k)
plan
to
replace
defined
benefits,
plus
dramatically
increased
employee
contributions
for
both
pension
and
health
plans
in
the
midst
of
furloughs
and
other
economic
takeaways.
PECG
has
been
active
in
the
Legislature
and
the
media
in
seeking
to
educate
the
decision
makers
and
the
general
population
on
the
facts
behind
the
retirement
plan,
as
the
attacks
have
been
more
emotional
and
ideological
than
fact-based.
PECG
is
also
part
of a
coalition
of
like-minded
organizations
which
are
getting
the
message
out
to
people
through
the
media.
The
facts
show
that
CalPERS
and
other
public
employee
pension
plans
may
have
some
flaws
which
should
be
corrected
but
are
basically
sound
retirement
plans
that
invest
taxpayer
and
employee
money
wisely
to
provide
a
reasonable
pension
for
public
servants
when
they
retire.
Along
with
other
organizations,
PECG
will
continue
to
pursue
publicizing
that
message
while
opposing
efforts
to
destroy
your
pension
plan.
|
.............................
|
February 18, 2011 |
|
State law specifies that for the Presidio Parkway project in San Francisco and other public private partnership projects (P3s) on state highways, Caltrans is the responsible agency for the performance of certain project development services, including construction inspection. Caltrans may use its own employees or can outsource the work within the legislative budgetary authorization in its Capital Outlay Support program.
For Presidio Parkway, rather than performing the services, Caltrans decided to allow the San Francisco County Transportation Authority to outsource all of the work. As this P3 approach would impose a one billion dollar debt on the State Highway Account over the next 30 years, PECG filed suit.
In an initial ruling, an Alameda Superior Court Judge has ruled that Caltrans had full oversight responsibility, even over work which had been performed before Caltrans was involved, and that’s good enough to satisfy the requirement that Caltrans actually perform the services. The law also requires Caltrans to give the Legislature 60 days notice before signing a contract, another provision which was violated.
The
next
step
is
for
the
issues
to
be
heard
by a
three-judge
panel
from
the
Court
of
Appeal.
PECG
will
be
filing
the
appeal
as
soon
as
the
lower
court
ruling
is
finaled
later
this
month.
|
.............................
|
February 15, 2011 |
|
Governor
Jerry
Brown
has
announced
that
he
is
dropping
the
State’s
lawsuit
regarding
payment
of
State
employee
salaries
when
the
Legislature
is
late
with
the
State
Budget
each
summer.
Originally
filed
by
Governor
Schwarzenegger,
the
purpose
of
the
suit
was
to
limit
State
employee
paychecks
to
the
minimum
wage
when
the
Legislature
is
late
in
passing
a
Budget,
with
the
remainder
of
salaries
to
be
paid
only
after
the
Budget
is
passed
and
signed.
State
Controller
John
Chiang
had
consistently
refused
to
obey
Governor
Schwarzenegger’s
order
to
reduce
paychecks.
In
dropping
his
predecessor’s
lawsuit,
Governor
Brown
has
eliminated
that
threat
to
employee
paychecks,
at
least
for
the
immediate
future.
PECG
appreciates
the
Governor’s
action
in
supporting
the
basic
concept
that
employees
are
entitled
to
receive
their
full
paychecks
on time
when
they do
their
job.
|
.............................
|
January 12, 2011 |
|
Under
the
State
bargaining
law,
called
the
Dills
Act,
the
Department
of
Personnel
Administration
(DPA),
representing
the
Governor,
meets
with
PECG,
representing
the
employees
in
State
Bargaining
Unit
9.
When
an
agreement
is
reached
on a
new
Memorandum
of
Understanding
(MOU)
or
contract
for
pay
and
benefits,
the
additional
funds
or
the
savings
resulting
from
that
agreement
are
put
into
the
State
Budget
or
other
bills
for
approval
by
the
Legislature.
Thirteen
of
the
twenty-one
state
bargaining
units
reached
agreement
with
Governor
Schwarzenegger
for
one
day
of
unpaid
furloughs
per
month
for
one
year,
which
will
end
sometime
in
late
summer
or
fall
of
2011,
a 3%
to
5%
increase
in
employee
contribution
to
PERS,
and
ultimately
an
increase
in
the
top
step
of
all
pay
ranges
of
3%
to
5%.
Similar
pay
reductions
were
imposed
on
supervisors
and
managers
by
the
previous
administration.
This
amounts
to
an
8%
to
10%
salary
reduction
for
a
year.
On
January
10,
incoming
Governor
Jerry
Brown
proposed
a
State
Budget
which
includes
savings
for
the
next
fiscal
year
beginning
July
1,
2011
resulting
from
agreements
which
have
not
yet
been
negotiated.
While
proposing
savings
from
bargaining
which
hasn’t
yet
occurred
may
seem
backwards,
he
was
obligated
to
present
a
Budget
proposal
a
week
after
taking
office,
prior
to
bargaining
with
PECG
or
the
other
organizations
which
did
not
reach
agreement
on
contracts
with
Governor
Schwarzenegger.
At
this
point,
the
Governor’s
Budget
proposal
becomes
a
bit
murky.
For
the
six
bargaining
units
without
contracts,
he
proposes
three
days
per
month
of
furloughs
to
continue
through
June
30,
2011.
However,
the
Legislature
only
authorized
a
10%
reduction
in
compensation
in
the
current
year,
while
three
days
of
furloughs
would
result
in a
14%
pay
cut.
Beginning
on
July
1,
2011
the
Governor
proposes
a
"10
percent
reduction
in
take-home
pay
for
the
6
bargaining
units
without
contracts,"
including
PECG,
saving
$308
million
for
the
General
Fund.
He
said
the
“savings
will
be
achieved
through
collective
bargaining
or
other
administrative
actions.”
About
40%
of
all
State
employees,
and
98%
of
Unit
9
employees,
are
paid
through
Special
Funds,
such
as
Federal
and
State
gas
taxes,
not
the
General
Fund.
He
proposed
a
reduction
of
$268
million
in
Special
Fund
expenditures
to
achieve
the
10%
reductions
for
those
employees.
Whether
he
will
propose
to
continue
furloughs
beyond
June
30
or
try
to
achieve
savings
in
some
other
manner
will
probably
be
revealed
in
collective
bargaining
in
the
next
few
weeks.
While
other
bargaining
units
which
reached
agreement
with
Governor
Schwarzenegger
have
contracts
which
extend
through
the
next
fiscal
year,
they
are
not
protected
against
additional
furloughs
or
other
actions.
Collective
bargaining
with
the
new
Administration
will
begin
shortly.
In
the
meantime,
there
are
several
lawsuits
regarding
furloughs
and
other
issues
which
the
Governor
inherits
from
his
predecessor.
PECG
will
be
working
with
the
Brown
Administration
on a
variety
of
issues,
including
collective
bargaining
and
the
State
Budget.
|
.............................
|
January 10, 2011 |
|
Governor
Brown
has
unveiled
his
proposed
State
Budget
for the
next
eighteen
months.
To
address
a $25.4
billion
General
Fund
anticipated
deficit,
he
proposes
$12.5
billion
in
spending
cuts,
$12
billion
in
revenue
increases,
$1.9
billion
in other
measures,
and a $1
billion
reserve.
The
spending
cuts
would
come
from a
variety
of
programs,
primarily
ones
that do
not
utilize
PECG-represented
employees.
However,
he
proposes
a cut in
employee
compensation
of $308
million
from the
General
Fund in
the next
fiscal
year,
equivalent
to a 10%
compensation
reduction
for the
six
State
Bargaining
Units
(including
Unit 9,
represented
by PECG)
which
did not
reach
collective
bargaining
agreements
with
Governor
Schwarzenegger.
He is
also
proposing
$268
million
in
Special
Fund
reductions
for that
item,
which
would
cover
most
PECG-represented
employees.
His
proposal
would
continue
3-day
per
month
furloughs
through
next
June,
which
would
appear
to
exceed
the
Legislative
authorization
in the
current
budget
for 10%
reductions.
However,
he said
all this
would be
pursued
through
collective
bargaining.
PECG
looks
forward
to
negotiating
a new
MOU with
the
administration
and new
DPA
Director
Ron Yank
to
address
the
needs of
the
State
and the
PECG
membership.
The $12
billion
in
revenue
increases
would be
achieved
primarily
through
continuing
income,
sales,
and
vehicle
license
fee
levels
which
would
otherwise
be
reduced.
The
Governor
proposes
a
special
election
in June
or
earlier
to seek
voter
approval
or the
Legislature
will
have to
address
greater
budget
cuts.
He also
proposes
to
assign
decisions
and
authority
to local
government
in such
areas as
fire,
court
security,
local
corrections,
mental
health,
and
foster
and
adult
care,
along
with
funding
to take
on the
added
responsibilities.
Subsidies
to
redevelopment
agencies
and
enterprise
zones
would be
eliminated,
saving
about
$2.5
billion
per
year.
In his
initial
proposal,
there do
not
appear
to be
significant
changes
in
staffing
for the
various
state
agencies
for
services
provided
by PECG
members.
In
Caltrans,
with a
Capital
Outlay
Support
(engineering
and
related
services)
budget
of over
9,000
person-years,
a
reduction
of about
200 PYs
is
proposed.
DWR
would
add 100
positions
and
staffing
changes
in most
other
departments
would be
minimal.
However,
those
figures
could
change
during
the
spring,
up to
the date
of the
Governor’s
Proposed
May
Revision
to the
Budget.
PECG
will be
working
with the
Administration,
the
Legislature,
DPA, and
other
organizations
to
ensure
that the
need for
Budget
revisions
is
consistent
with the
needs of
the
state
programs
and the
employees
who
provide
the
services.
|
.............................
|
January 4, 2011 |
|
Governor
Jerry
Brown
and the
other
seven
State
Constitutional
Officers
took the
Oath of
Office
on
Monday,
January
3,
except
for
Lieutenant
Governor
Gavin
Newsom,
who will
take
office a
few days
later.
In his
inauguration
speech,
Governor
Brown
joked
that he
would be
following
in his
father’s
footsteps
as well
as his
own. He
talked
about
the
difficulties
and
opportunities
facing
California.
Next, he
will
deliver
his
proposed
State
Budget
on
January
10 and
his
State of
the
State
speech
later
this
month.
---------------------------------------------------------------------------------
On the
morning
of
January
3, an
Alameda
Superior
Court
Judge
lifted
the
Temporary
Restraining
Order
blocking
Caltrans
from
signing
a no-bid
overpriced
contract
with a
German-financed
private
consortium
to
finish
designing
and
building
the 1.6
mile
Presidio
Parkway
project
in
San
Francisco.
With the
Restraining
Order
lifted
and
Governor
Brown
about to
take
office
at 11
a.m.
that
morning,
the
Caltrans
Director
signed
the
contract
which
will
cost the
taxpayers
hundreds
of
millions
of
additional
gas tax
dollars,
whether
or not
the
contract
is
ultimately
found to
be
legal.
----------------------------------------------------------------------------------
Governor
Brown
has
selected
retired
labor
attorney
Ron Yank
as his
new
Director
of the
Department
of
Personnel
Administration
or DPA.
Before
retiring
three
years
ago, Ron
and his
law firm
represented
several
state
safety
bargaining
units in
their
contract
negotiations
with
previous
Governors.
PECG
looks
forward
to
working
with Ron
Yank and
the new
Brown
Administration
in
contract
negotiations
and
other
matters.
|
|
