According to today's Sacramento Bee, California will sustain $948 million in spending cuts and $1.8 billion in higher taxes after fiscal leaders announced Friday that the state will not receive enough federal budget relief to avoid those measures.

Sacramento Bee columnist Jon Ortiz reports in his blog that a few publications are calling for public employees to pay more of their pension costs. In "Sharing the Pain" in Government magazine, Girard Miller calls for new formulas in which retirees share the cost of increased pension benefits and increased health premium costs. The San Diego Union-Tribune editorial suggests agencies under CalPERS return to pre-1999 pension plans for new hires (in 1999, CalPERS increased the fretirement ormula to a 3 percent multiplier). And a (Los Angeles area) Daily Breeze editorial favors the riskier defined benefit contribution pension plans (such as 401(k)s).

Yet another water pipe has burst and more mold has been found at the Board of Equalization headquarters in Sacramento, The Sacramento Bee reports. This time, the agency will move. The discovery forced the agency to put 275 people on paid leave last week.

The Sacramento Bee State Worker column reports today that all state workers, except SEIU members, who must work on Cesar Chavez Day, March 31, will work for straight time, not time and a half. SEIU's new contract provides for time and a half for its memvbrs. All state employees who work that day will be entitled to take another day off. The Bee reports the state will save $10 million to $20 million from the change.

The University of the Pacific forecasts a record-breaking unemployment rate of 12 percent in California by late this year. The rate won't improve to the single digits again until 2011, UOP says. The last unemployment record was 11 percent, set in the 1980s (reported by The Sacramento Bee).

More members than ever attended our "March on the Capitol" on St. Patrick's Day, March 17. We visited more than 80 legislators, who demonstrated a strong understanding of and concern for our issues. Now that Lobby Day was so successful, members need to continue their outreach by visiting their representatives in their district offices. Nearly all legislators work in their home offices on Friday. By scheduling an appointment at your legislator's local office, you can make sure you will speak face to face with him or her.

CalPERS, the nations' largest public pension fund, will begin a yearlong pilot project to electronically order prescriptions. The agency says e-prescribing "improves patient safety by ensuring that patients receive the right prescriptions and reduces cost." The physician would order the prescription on an automated data entry system that would transmit it to the pharmacy. For a Sacramento Bee story, click here.

With 91 percent approval, SEIU Local 1000 has ratified a new contract that reduces the furlough days to one per month for the union's 95,000 members. The contract now goes to the Legislature for approval and then to the governor's desk. Besides the reduced furlough, SEIU members will get two floating holidays to replace the two holidays Schwarzenegger cut and pay health insurance premiums at about the 2008 level. The contract does not cover other bargaining units or excluded employees; however, the vote result does provide a ray of sunshine for supervisors: ACSS has been working with DPA to make sure excluded employees get at least the same deal.

The Legislative Analyst's Office has published an analysis of Proposition 1A, the May 19 ballot measure that would require the state to make annual contributions to a budget reserve up to a minimum level. It also would limit the use of the reserve in "bad budget" years. Proposition 1A was placed on the ballot as part of the budget negotiations. The analysis also discusses Proposition 1B, which would -- IF Proposition 1A is approved -- allocate general fund revenues to the Supplemental Education Payment Account.

A Sacramento Superior Court Judge has ruled that state Controller John Chiang did not have the right to defy Gov. Schwarzenegger's order to temporarily reduce state workers' pay to the federal minimum wage. The controller, the judge wrote, does not have the power to set pay and did not show that outdated technology would have prevented him from carrying out the order.

As the keynote speaker at an ACSS board meeting last year, DPA Director Dave Gilb warned that nearly half the state’s supervisors and managers could retire in the next five years. A Bureau of State Audits report released yesterday, and reported by The Sacramento Bee’s State Worker blog, confirms Gilb’s general predictions: Forty-two percent of the state’s leadership and more than 20 percent of its rank-and-file employees may retire in seven years. In the departments surveyed, nearly half the workers were 50 or older. Of even greater concern is that succession plans are just beginning. The blog contains a summary link; read the entire report (pdf) here.

According to The Sacramento Bee's State Worker column today, the California Correctional Peace Officers Association has filed a lawsuit against the governor contending the furloughs are an illegal pay cut. This suit differs from previously filed suits by contending the order can't be executed rather than challenging the governor's authority to issue it. The association says its members will not be able to take off their furlough time.

DPA Director Dave Gilb resonded to The Sacramento Bee's article on state hiring in a letter to the editor March 18. Some previously authorized positions were filled and some departments do not fall under the governor's budgetary control, Gilb said. To read the letter, click the headline above.

Despite budget cuts and a hiring freeze, the state's work force has grown since June 2008 and not all part-time workers have been laid off.

Mac Taylor, California's legislative analyst, warns the plunging economy could open an $8 billion hole in the state's new budget. That deficit will worsen by $6 billion if voters reject the ballot measures on May 19.

Judge Patrick Marlette, the Sacramento Superior Court judge who ruled in the governor's favor on the furlough issue several weeks ago, has ruled in his favor again: Employees of constitutional offices are subject to the furlough. The tentative ruling could be made final as early as this afternoon. The ruling affects about 15,000 state workers. The passing of the budget didn't negate the need for the furloughs, the judge wrote.

State Worker columnist Jon Ortiz's "random observations" this week make a lot of sense. One of those observations was generated by ACSS' meet and confer with DPA. The point he makes: If the May 19 ballott propositions don't pass, state workes may be in a world of hurt.

Here, from Senior Labor Rep Bonnie Morris, are the highlights from the March 4 meet and confer with DPA.

State Controller John Chiang has begun releasing more than $2.8 billion in payments -- tax refunds and student aid included -- that were delayed because of the budget crisis. Payments are being made on a "first in, first out" basis.

Californians will vote on seven measures in the special election called for May 19. These measures were originally scheduled for the June 8, 2010, primary, but the Legislature and governor called the special election to address four of the budget provisions. Those are propositions: 1A, which would increase the amount of money put into the state's rainy day account and restrict withdrawal of funds; 1B, which would provide supplemental education payments to public school districts and community colleges beginning in 2011; 1C, one of the major components of the budget plan, which would allow the state to borrow $5 billion in the 2009-10 fiscal year from future lottery profits and potentially more in future years; and 1D, which would temporarily redirect a portion of First 5 program funds for budgetary savings. The deadline to register to vote in this election is May 4 (postmark date OK). For more information, see the Secretary of State's news release and the Legislative Analyst's analysis.

ACSS is the sponsor of two bills being considered in the Legislature this year. AB 1161, State Employee Adverse Actions: Change Statute of Limitations From Three Years to One Year for Excluded Employees, was authored by Joan Buchanan of Contra Costa and Alameda. The bill would change the notice requirement for adverse actions against managerial, supervisory and confidential state employees from three years to one year from the date of the misconduct. AB843, State Employee Adverse Actions: Change the "Burden of Proof" in Adverse Actions for Managerial Employees, would place the burden of proof in an adverse action on the employer, not the managerial employee. The author is Marty Block of San Diego. 

State Worker columnist Jon Ortiz tries to untangle the furlough "mess" in today's Sacramento Bee. First it was announced tomorrow would be the last designated furlough day; now the DPA has softened its language to say it's "working toward" having it be the last set furlough day.

The Sacramento Bee's State Worker columnist, Jon Ortiz, explains the effects of the change to "self-directed" furlough days in his online blog. For the full text of the entry, click the headline above. Excluded employees, who are still covered by the governor's order to take two furlough days, will take this Friday (March 6) as a furlough day but will be on a self-directing schedule thereafter.

Nearly two-thirds of likely voters in the upcoming May 19 election are unhappy with the budget, The Sacramento Bee Capitol Alert reports. The same poll shows initial support for the six items on the ballot. Other poll results: Eighteen percent say the Legislature is doing a good job and 38 percent approve of the job the governor is doing. The ballot measure to hold open primaries is favored by 58 percent.

A Sacramento Superior Court judge has tentatively ruled that state workers' pay can be cut to minimum wage when lawmakers miss the budget deadline. Another hearing is set for 1:30 p.m. today. The final ruling could come at that time or a few days later. Judges rarely change their tentative rulings.

Here is a pdf of the Legislative Analyst's analysis of the McCauley Public Pension Reform Act. To recap: Signatures are now being gathered to put an intiative on the ballot to allow public agencies to reduce their retirees' pensions. We urge you not to sign this petition! The LAO report concludes that any savings that might result from reducing pensions would likely be offset from increases in other costs.

According to a report covered by The Sacramento Bee, California's "shortsighted" payment plan is causing CalPERS retirees' benefits to cost far more than they need to. One proposed way to help: Raise new hires' benefitted retirement ages.

We have written in the past about intent of Paul McCauley to place an intiative on the ballot to reduce public employees' pensions. McCauley has gotten permission to gather signatures. Sacramento Bee columnistJon Ortiz warned state workers about McCauley's intent. You will be interested in McCauley's response. You should also read the Secretary of State's announcement of the initiative.

The official title of this measure is: Renegotiation of Public Employee Pension Contracts. Initiative Constitutional Amendment. If approached to sign a petition, read it carefully!

If you have questions about the state's layoff process, you can get answers in ACSS' free booklet, "Information and Counsel for State Excluded Employees Facing Layoff." Find it on our Web site under the "Labor Relations" tab or call 800-624-2137.

In the final budget, Gov. Schwarzenegger cut the budgets of the constitutional officers -- who refused to furlough their workers -- by 10 percent, the projected savings of two furlough days a month. He cut Lt. Gov. John Garamendi's budget by a whopping two-thirds. The governor also is asking for approval to eliminate the Integrated Waste Management Board, against protests.

Here, in easy bullet format, are the major provisions in the budget plan just approved.

After a five-day impasse and a 45-hour session, the Legislature approved the budget package today. Sen. Abel Maldonado, R-Santa Maria, provided the final Senate vote in exchange for some concessions, including establishing an open primary system and banning legislative pay increases during deficit years. Maldonado also won the elimination of an additional 12-cent gas tax.

ACSS members had mounted a legislative action campaign to urge Maldonado to vote for the budget compromise.

Keep sending those emails urging your Republican senators to vote for the budget!

New GOP leader Dennis Hollingsworth, elected late last night in an ouster of Dave Cogdill, said this morning he hopes "this deal doesn't make it through." He wants a budget with no tax increase. The budget deal negotiated between legislators and the governor still lacks one Republican vote for passage (Cogdill and Roy Ashburn are on board). California requires a two-thirds majority to pass a budget.

To read a copy of the governor's layoff letter (called a "surplus notice"), click the above headline.

Gov. Schwarzenegger held off sending 20,000 layoff notices when the budget was expected to pass. With no budget, he now says he'll send those notices Tuesday morning.

Sen. Abel Maldonado, R-Santa Maria, hasn't committed yet to providing the final vote needed to approve the budget plan. He's holding out for four concessions, reports say: (1) an open primary for statewide office; (2) elimination of pay for lawmakers if they do not pass the budget on time; (3) a ban on legislative pay raises and per diem increases in years when there is a budget deficit; and (4) removal of pork from the budget proposal. For his chances and additional details, go to the Capitol Alert.

Meanwhile, no budget talks have begun today. The plan now is to start at 6 p.m.

The legislators failed to reach a budget agreement yesterday and are scheduled to try again at 11 a.m. today. Sen. Abel Maldonado of San Luis Obispo has indicated he may provide the third Republican vote the agreement needs to pass.

The Sacramento Bee has just published an online editorial we urge you to pay attention to. The headline tells the tale: "Please call Sen. Cox and urge him to be a hero."

It's Sunday afternoon and the budget deal is still stalled. Three Republican votes are needed. Until yesterday, Sen. Dave Cox of Fair Oaks -- who less than 24 hours ago referred to the state treasury's "dire need of cash" -- was expected to be one of the three. Early this morning, he backed down.

We urge you to follow The Bee's suggestion: Call Cox and tell him to cast that "yes" vote. The budget crisis affects you no matter where you live. If the gap isn't resolved immediately, the state will run out of cash and everyone in Caifornia will suffer.

Please call Sen. Cox today -- now -- and insist he cast his vote for the budget compromise that has been so painstakingly hammered out and is so close to passing.The future of California is at stake.

Cox's number: 916-651-4001.

The budget plan stalled in the state Senate early this morning in need of one more Republican vote, reports a Sacramento Bee Alert. GOP leader Dave Cogdill supported the plan; Sen. Roy Ashburn of Bakersfield abstained. Sen. Dave Cox of Fair Oaks, expected to provide the needed third vote, voted no. The contentious issue is tax increases.

Acording to a Sacramento Bee report by Jon Ortiz, SEIU, which represents 95,000 rank-and-file state workers, reached a tentative agreement with the governor today that calls for only one furlough day instead of the two the governor had ordered. That reduces the pay cut to just under 5 percent. The deal cuts two holidays – Lincoln's birthday and Columbus Day – but adds two floating holidays to replace them.

In one concession, the union agreed to apply the furlough to the employees of departments run by constitutional officers.

ACSS has taken a strong stand with DPA that supervisors will not receive harsher treatment than rank and file, and we are working to make sure these improvements are passed along to excluded employees. We will update you on this Web site and by email when we have definitive information.

More information is on the SEIU Web site.

The Legislature has put off its vote on the budget plan until at least 5 p.m. The governor did, however, hold off on issuing 20,000 layoff notices to state workers.

The Legislature is scheduled to vote on the latest budget proposal Saturday at 9 a.m. The governor has said he may hold off sending 20,000 layoff notices to state workers until after the vote.

The Sacramento Bee online "Capitol Alert" this morning is reporting more details on the tentative budget plan. The vote is expected tomorrow. The details from The Bee begin below. For the complete item, click on the headline above:

The 30,000-foot view: $15.8 billion in cuts, $14.3 billion in tax increases, $10.9 billion in borrowing. And if California gets $10 billion in federal stimulus money, cuts drop by $1.2 billion, borrowing by $5.5 billion and tax increases by $1.8 billion.

Delving deeper the plan: Gives K-12 education $5 billion less than it was otherwise entitled.

Some of the details that have been revealed in the tentative budget: A one cent sales tax increase; a 12 cents per gallon gasoline tax increase; a vehicle license fee increase of more than 75 percent – all for two or five years; and personal income tax increases across the board. If a budget with sufficient savings isn't signed by Friday, the governor is ready to send layoff notices.

The holiday cuts in the proposed budget agreement will be permanent, but the governor could relax the furlough to reach bargaining agreements, according to a Sacramento Bee report. However, one furlough day will likely remain.

Gov. Schwarzenegger and legislative leaders have reached a tentative budget deal to close the projected $40 billion gap, according to a brief Sacramento Bee item. A vote is expected Friday. Among the reported provisions: Increasing income tax, raising the sales tax by a penny, raising the vehicle licensing fee. We will update this information as it becomes available.

Gov. Schwarzenegger said today he will send layoff warnings to 20,000 state workers if the budget agreement is not reached by Friday. He also wants to eliminate 10,000 full-time state jobs.

Gov. Schwarzenegger has sued Controller John Chiang to force him to apply the furloughs to employees of the state's constitutional offices.

As state workers are being furloughed, many Senate staffers are not only not being furloughed but are getting their pay padded, according to a Sacramento Bee investigation. A Bee editorial decries the practice.

New Capitol Alert posting: Every living governor, including Attorney General Jerry Brown, is urging Gov. Schwarzenegger not to eliminate the California Conservation Corps. The agency typically hires young men and women to work for a year on outdoor state projects. The savings would be $24 million compared to a $40 billion deficit.