State Controller John Chiang has once again stood up for state workers. In a short statement issued Dec. 19, Chiang criticized the governor's executive order, saying it was the painful result of the governor's and Legislature's failure to resolve the budget crisis. "It is clear that the governor's executive order would hurt public servants and in turn adversely impact our economy and slow its recovery," he wrote.

In a letter dated Dec. 23, Chiang proposed the federal government authorize a limited guaranty program for state or local infrastructure bonds to help jump-start the economy. He said the proposal could "prevent the cancellation of important state and local government projects. ... Local economies recover when people are put back to work and physical assets are created." I

n a Dec. 22 letter,  Chiang warned the governor and Legislature and the state is less than 70 days from running out of cash. He characterizing the state's financial crisis as "dire."

ACSS President Olin King on Dec. 23 wrote Gov. Schwarzenegger a letter criticizing his plan to furlough state workers two days a month. The governor's executive order, King said, "transfers the deficit to the backs of your 238,000 state employees." He asked the governor to rescind the order and to meet with him and the rest of the ACSS board members.

Democratic leaders negotiating with the governor say the negotiations have "significantly narrowed" and a deal is "very close," The Sacramento Bee reports. Talks are continuing over the weekend by phone with the governor, who is vacationing in Idaho, and Democrats are hopeful a deal will be approved by the end of next week.

Using hand-held phones while driving became illegal July 1. Beginning Jan. 1, Senate Bill 28 will also make it illegal to write, send or read text messages while driving. Violations could result in fines but do not add points to the offender's driving record. The bill alludes to more driving restrictions in the future: applying makeup, shaving and reading, for example.

Gazing into your crystal ball next Christmas, were the furloughs good for California? State Worker columnist, Jon Ortiz, gives a mostly imaginary glimpse.

According to The Sacramento Bee Web site this morning, cutting two state workers' holidays is one of the concessions the governor is still demanding from Democratic legislators as they scramble to fix the budget deficit. A major issue is whether the legislators will relax environmental review for state transportation projects. The legislators claim the reduction will give the administration too much control. Schwarzenegger's office estimates his proposal would create 18,000 jobs.

New York Times columnist Bob Herbert this morning praises the "vilified" American workers. "Working men and women are not getting the credit they deserve for the jobs they do without squawking every day, for the hardships they are enduring in this downturn and for the collective effort they are willing to make to get through the worst economic crisis in the U.S. in decades," he writes. In an early morning television interview, Herbert said he was speaking of all workers, whether union or not, and that the government and the media had let them down.

ACSS board member Elnora Fretwell tells The Sacramento Bee that state workers "feel like pawns" as yet another administration aims budget cuts at the employees. "All of us are fair game," she said in the front-page article. Her photo's on the back page. Fretwell is a supervisor with CalSTRS.

The article pointed out a new possibility for the furlough plan: that workers could have their pay cut without being given the time off until later. Department of Personnel Administration spokeswoman Lynelle Jolley says that idea is "not off the table," according to the story. Jolley told The Bee there would be very few exemptions to the furlough.

In other news, two unions have filed lawsuits and SEIU Local 1000 has filed an unfair practice charge against the governor's furlough plan.

After refusing to sign a budget plan put forth by Democrats, Gov. Schwarzenegger yesterday ordered furloughs for state employees and "surplus" notices for the state's 20 percent least senior workers. Furloughs will begin Feb. 1 for rank and file and supervisors, Jan. 15 for managers and exempts, and will continue through June 30, 2010. Surplused workers will be subject to layoff, transfer or demotion beginning 120 days after receiving their notices.

Reaction to the measure has been strong. In an eblast yesterday to members, ACSS President Olin King said the order "won’t come close to resolving the deficit. This is showboating of the highest order.” He added: “It is counter to what President-Elect Obama is doing. Obama is trying to create jobs and the governor’s creating unemployment.”

We are protesting this unfair order and urge you to use our Legislative Action Center, at left, to tell the governor and the media your thoughts. We believe the governor and Legislature should focus on cutting expenses and increasing revenue, not on -- yet again -- placing an unfair burden on state workers.

ACSS met with CDCR on Dec. 11. At this meeting, rather than pose new agenda items, ACSS asked CDCR to respond to all pending issues from the last meeting.

CalPERS announced today it has appointed Anne Stausboll, a former CSEA attorney, as the pension fund's new chief executive officer. Stausboll worked for CSEA from January 1987 through December 1992. She will be the first woman CEO to head the pension fund. For the past eightmonths, Stausboll has served as CalPERS' interim CIO. For four years before that, she was the system's chief investment operating officer. She also served as general counsel for state Tresurer Phil Angelides and California's chief deputy treasurer.

The Republican legislative leaders released their plan to close the budget shortfall late Monday. Total cuts: $22 billion. They maintain the governor's proposed day-a-month furlough for state workers and the loss of two paid holidays. They also propose legislators take a 5 percent paycut. Here are lists of the plan's specific revenues and cuts.

The Sacramento Bee's "State Worker" blog, by columnist Jon Ortiz, has posted portions of a recent interview with ACSS President Olin King. Ortiz talked to Olin for a Dec. 8 front-page story on state workers' reactions to layoff threats. He had room in the story for only a brief quote from King, so he added some comments in his blog.

A couple of them: On correlating staffing to state revenue: "Many revenue-gathering agencies have been understaffed for some time. If the Board of Equalization, for example, employed enough auditors, the state would get more revenue."

On what ACSS members are saying: Our members are concerned that the governor is not being fair with them. ... They're confronted with the same increases in cost of living as everyone else. The governor should remember that. He shouldn't do something just because he has the power to do it."

Ortiz would welcome your comments on this and other posts. Email him at jortiz@sacbee.com. Copy us at lholderness@calcsea.org.

The budget stalemate is getting nastier. A Sacramento Bee editorial accuses Republicans of holding the budget hostage for policy changes wanted by the California Chamber of Commerce. The writer calls the tactic "a dangerous game." See also: "Budget talks with Schwarzenegger dead" and Capitol columnist Dan Walters'  "Deficit soars, but deadlock persists."

ACSS members: Please use our Legislative Action Center to contact your legislators to insist they resolve this budget crisis.

CalPERS reassures state workers their pensions are safe. You can link to other information about CalPERS' investment strategies.

Are unions backing away from the hard line in the face of California's massive budget deficit and the threat of state-worker layoffs? The State Worker columnist Jon Ortiz explores that issue. One fact Oriz offered: "State worker jobs this fiscal year, barring layoffs or other cuts, will account for ... roughly 17 percent of California's expenses. So making job cuts won't drain much red ink from the state ledger."

Gov. Schwarzenegger, at a press conference yesterday, warned the state faces a "financial armageddon" if the budget crisis isn't solved this month. He has installed a clock in his office that ticks off the amount of money -- $470 -- the state is losing every second the budget stalemate continues.

Chapter 513: ACSS Director-at-Large Frank Ruffino’s chapter invited all four CSEA affiliates to its October meeting in San Diego to meet with three San Diego-area Assembly members. It was Ruffino’s vision “to prove a point that the affiliates can work together even though we have diverse interests.” All three legislators, Marty Block, Manuel Perez and Anthony Portantino, emphasized they are committed to helping state workers, Ruffino said. "They were impressed by our unity and our commitment to good government," he said.

Ruffino chatted with Assembly Speaker Karen Bass at a later political function. Ruffino said Bass showed genuine concern for our needs and would like to meet with ACSS members. “She was really listening to us,” he said. (Continue)

If you thought the budget news couldn’t get worse … it has. At yesterday’s joint legislative session, four state finance officials described the crisis in terms like “dire,” “toxic,” “catastrophic,” “dangerously short of cash.”

But the worst news is this: Legislators aren’t any closer to agreeing on a solution.

IT IS IMPERATIVE you tell your representatives they must resolve this budget crisis NOW! California’s economy is in peril, and state workers will bear an unfair burden.

Contact your representatives easily. We have written a sample letter you can send, or you can delete our text and add your own. Just write!

In response to Gov. Schwarzenegger's warning of layoffs, you must write your senators and assembly members to insist they resolve the budget crisis. The longer the shortfall persists, the greater the chance layoffs will occur.

Emailing your legislators and the governor is easy: Contact Your Legislators, then click on your representatives' names and follow instructions.Tell them exactly how possible layoffs and the proposed furloughs and holiday cuts will impact you and your family.

If you are facing a layoff, ACSS is here to help. Our labor reps, backed by our excellent legal staff, will advise and represent you. To find your labor rep's name and contact information, use the "Contact" tab above.

We would be happy to send you our booklet, "Information and Counsel for State Excluded Employees Facing a Layoff." Call our office at (800) 624-2137 or email acss@calcsea.org.

Remember: ACSS is the ONLY organization that exclusively represents the state's management team -- the employees who do not have bargaining rights.

President Olin King calls the governor's suggestion to lay off some state workers a "draconian remedy" in an article in today's Sacramento Bee.  "It's not a prudent way to deal with a crisis that affects all Californians, not just state workers," he says.

The article, by The State Worker columnist Jon Ortiz, quotes Schwarzenegger in Los Angeles last week warning that the delay in closing the budget gap may mean "we are almost ... forced ... to lay off in order to make ends meet." The governor can order layoffs without the approval of unions or the Legislature.

Layoffs could bring greater unemployment and reduced consumer spending. SEIU estimates that state workers put more than $15 million a day into the Sacramento area's economy.

In related news, Bee columnist Dan Walters today writes that the official budget deficit figure is "almost certainly too low." He estimates the combined total for this year and next could "easily" exceed $35 billion.

And Ortiz's State Worker blog posts reactions to the governor's warning and other state worker issues.

The Legislature will meet today at 3 p.m. in a rare joint session to hear the latest news on the state's bleak financial outlook. The expected speakers will be State Treasurer Bill Lockyer, Controller John Chiang, Department of Finance Director Mike Genest and Legislative Analyst Mac Taylor. In her radio adress this week, Assembly Speaker Karen Bass said the session would "help lay the groundwork for objective, bipartisan solutions."

A Sacramento Bee editorial this morning calls for the state to eliminate reported "money-wasters." The comments were based on a Nov. 20 state auditor's report on the California Unemployment Insurance Appeals Board.

According to a survey by the National Conference of State Legislators, 15 states are forecasting double-digit budget gaps in 2010, and two of them have bigger deficits than California's. Arizona is projecting a 24 percent gap and New York is projecting 20 percent, compared with 18 percent for California. Other states have instituted hiring freezes, banned travel and frozen wages.

The first month's numbers are in, and they are good. Our Webmaster reports that since we launched our new format a month ago, the number of visits to the site has increased by 20 percent and the number of page views -- when you click past the home page -- is up 46 percent. You're staying on the site longer, too. We appreciate your interest and support while we restructure this site, and we welcome your suggestions. Email them to lholderness@calcsea.org.

More Web update: You may have noticed we removed the "updated" date from the site. We are now dating each entry. The flaw in the previous method was that you couldn't know exactly what had been changed. Now you can see at a glance which items are new since you last checked. In our blog, the top news item will always be the most recent one.

Sometime on Friday we will restore the home-page access to the Legislative Action Center and the Member Benefits page. They have both been missed.

The Sacramento Bee has calculated the budget deficit, based on $11.2 billion, equals $429 for every California adult. The Bee asked readers what impact giving the state $429 from their personal budgets would have on their lives, and we'd like to know our members' answers to the same question. Would you forgo that amount if it meant being able to balance the budget? What would you give up? Tell us at lholderness@calcsea.org or in the comments section of this blog. To access "Comments," you'll need to register. You won't be giving up any of your $429; registering is free.

Here are a few Bee responses: "Changing phone service and parking the RV." "Cutting out cable TV." "Staying home next summer." "Not donating to the grandkids' college fund." "Living on cat food." Several said they'd give the money if they knew it would be well spent.

There is one downside to the falling gas prices: The mileage reimbursement rate will fall, too.

The IRS has issued its new rates for 2009: 55 cents for each mile driven for business. The rate had been raised at mid-year to 58.5 cents to account for the higher gas prices. ACSS will reimburse approved mileage at the IRS rate.

It didn't take new Senate Pro Tem Darrell Steinberg long to nearly fill the roster of Senate committee chairmen, reports Sacramento Bee Alert. In his second day in office, Steinberg named all but two of them. ACSS supported many of the appointees. Sen. Christine Kehoe, who will head the powerful Senate Appropriations Committee, spoke at our July board meeting in San Diego. Steinberg -- a former CSEA attorney -- will head the Rules committee. The Agriculture and Veterans Affairs chairmen, both now Republicans, still must be named.

The California Budget Project reports that the number of unemployed Californians rose by half a million this past year. The nonpartisan CBP independently analyzes state financial data and their effect on California residents.

A new report from the Legislative Analyst's Office says in its introduction: "The state’s revenue collapse is so dramatic and the underlying economic factors are so weak that we forecast huge budget shortfalls through 2013-14 absent corrective action." The only hope the state has, the report says, is to "begin laying the groundwork now." The report does suggest some solutions (click on the headline to read them here). The LAO on Nov. 11 also issued an assessment of the governor's proposals.

You, as a state worker, now face a 5 percent pay cut and the loss of two paid holidays. Are the legislators who will vote on the budget proposal also taking cuts? They're not. The governor doesn't control the legislators' pay, so the proposed cuts don't affect them. This has riled many state workers, according to Jon Ortiz's The State Worker column in The Sacramento Bee today. What do you think? We'd like to hear your opinions, at lholderness@calcsea.org, and probably so would Jon at jortiz@sacbee.com.

New information! "Reaching New Heights Together," the 11th annual CSEA Women's Conference March 27-29 at the Sacramento Holiday Inn, is accepting sponsorships and orders for ad space and exhibit tables. The conference examines such topics as financial planning, technology and work-life balance with a focus on women's issues. For more information, email dmcgowan@calcsea.org.

The ACSS executive board and staff, led by newly elected President Olin King, met Nov. 13 at the headquarters office to discuss the vision for the organization's future. The minutes from that meeting will be posted when they are approved.

Some of the points we talked about:

• Developing a vision statement that reflects our role as the preeminent excluded-employee organization.
• Increasing membership 5 percent per year. Some ideas: more contact with department heads, urgent outreach to non-SEIU bargaining units, a survey to learn supervisors' issues, establishing an "army" of advocates.
• Increasing chapter membership and participation with more interaction and contact.
• Encouraging district office visits. Keeping in contact with legislators is one of the most effective ways to make sure our issues are considered.

We welcome your own vision for ACSS' future. If you register and log on, you will be able to post your own comments on these articles.

State workers take a couple of hits in the Sacramento Bee this morning. A source quoted in The State Worker column says he has no sympathy for a "measly 5 percent" paycut. A measure just passed in Orange County indicates the feeling may be widespread and could bear ominous consequences  To respond to the article, email jortiz@sacbee.com. The State Worker blog asks a disturbing question: Does the state have too many managers and supervisors? We encourage you to post a response. 

In what is probably good news for state workers, the governor's budget plan apparently isn't likely to pass as proposed -- or any time soon. The governor's plan to close the $11 billion gap puts an unfair burden on state workers. "Don't bet on" solving the crisis in this session, writes the San Francisco Chronicle today. The plan is a "collection of already rejected ideas, supported by almost no one," says The Sacramento Bee.

No surprise: State workers are steaming over Gov. Schwarzenegger's proposals to cut their pay and eliminate holidays, writes The State Worker columnist Jon Ortiz of The Sacramento Bee. In his long list of proposed cuts, the governor wants to furlough state workers one day a month for 19 months, ax two paid holidays, end overtime pay for working on holidays and reduce overtime compensation. He also wants to raise the sales tax to more than 9 percent and tax additional services. ACSS is opposing the cuts on state workers. Today's Bee also publishes the details of the budget plan, with reactions. They're worth checking out.

According to The Sacramento Bee, Senate President Pro Tem Don Perata says he would support raising revenues to help close the budget gap by restoring vehicle license fees and taxing offshore oil production. The gap is projected to be massive: $11.2 billion this year and $13 billion more next year. Gov. Schwarzenegger is expected to reveal his plan for closing the gap today.

Vice President Olin King was unanimously elected ACSS president at the Oct. 25 board meeting in Sacramento. Twelve-year President Tim Behrens is retiring from state service and stepped down. King is from Chapter 511 in the Los Angeles area. Director Arlene Espinoza, of Sacramento Chapter 503, was unanimously elected vice president. The next board meeting is Jan. 9-11 in Sacramento.

(Oct. 23) When state workers face paycuts, or wages that don't keep up with inflation, or if they lose their jobs, their local economies suffer, reports The State Worker column today. State workers put an estimated $15 million a day into the economy of the Sacramento area alone, SEIU estimates.

The Sacramento Bee is reporting that, according to a report from the state auditor, 20 state workers from nine different departments and agencies were involved in improper on-the-job activities that cost taxpayers $201,000. Only some of that money is now being recovered.

After the recent 85-day budget battle, most Californians would like to see the budget process changed, at least according to a survey conducted this month by the nonpartisan Public Policy Institute of California. The survey reveals that more than three-fourths of Californians want major changes in the budget process and nearly half support lowering the marjority required to pass the budget from two-thirds to 55 percent.

Terry Sutherland

The Sacramento Bee's "State Worker" blog on Sept. 25 features ACSS secretary-treasurer Terry Sutherland.

Columnist Jon Ortiz had written about an IRS proposal to change retirement age requirements and asked state workers to send their thoughts. Sutherland, a CPA, wrote Ortiz a letter analyzing the proposal as he sees it. Ortiz excerpted the letter and provided a link to read it in full.

A few very brief points from Sutherland's letter:

• Public safety workers likely won't be affected; they'll still be able to retire at 50.
• "Double-dipping" may be prevented.
• "Miscellaneous" state workers - like Sutherland - may need to wait until 55, not 50, to retire.
• The IRS proposal could be "sidetracked by the lobby tsunami."

Contact Jon Ortiz at jortiz@sacbee.com.

The State Worker columnist, Jon Ortiz, is once again asking for your thoughts. This time it's on a matter that pobably concerns most of you: your retirement.