May 14, 2014

Yesterday Governor Brown released the “May Revision” to his proposed State Budget.  The May Revision makes no significant changes to the funding for state employee compensation which he proposed in January.  This means that the funding to address the salary inequity for PECG-represented supervisors and managers remains in his proposed budget, which the Legislature will now consider.

The next step in the process is for the Legislature to pass the Budget bill in June.   The funding to address the salary inequity for PECG-represented supervisors and managers, to take effect on July 1, 2014, has been approved by the necessary budget subcommittees.  This means that unless there is an unexpected change, the salary adjustments will be part of the Budget bill voted on by the Legislature.

Although the details are still unclear, it appears that the currently proposed funding is sufficient to correct the full inequity for Senior supervisory employees, while at the managerial level, the increases may be less than the full raises received by rank-and-file employees in 2008.  As details emerge, PECG will continue to advocate for providing the entire pay adjustment to all PECG-represented supervisors and managers.

Normally, under the “highest year compensation” formula, a salary increase is fully credited when calculating a pension one year after the increase is implemented.  The Administration has proposed, in a “trailer” bill, which is a companion bill to the Budget, that full credit for pension calculations be delayed by another year or two for a small portion of the July 1, 2014 salary increases.  PECG does not support any delay in pension crediting, but the same procedure was used last year when other state employees received raises in excess of a general salary increase.

PECG will continue to be actively involved as the final Budget for the upcoming fiscal year, along with any related trailer bills to the Budget, are passed and sent to the Governor for his signature.

The PECG Supervisory Meet and Confer Team appreciates your continuing support as we seek to resolve this long-standing inequity.

Alan Escarda

PECG Corporate Vice President, Supervisory