The State Worker column this morning offers a warning: With no payroll appropriated for June and the end of the fiscal year looming, Gov. Schwarzenegger could order state worker pay reduced to the federal minimum wage of $7.25 an hour.

The State Worker blog and other news sources today report on a study released today that showed state and local government employees are better educated but earn less than their private-sector counterparts. Public-sector benefits narrow the gap somewhat don't close it.

Sen. Abel Maldonado, with his father holding the Bible, was sworn in by Gov. Schwarzenegger today as California's lieutenant governor. He will complete John Garamendi's term, which expires in November. Maldonado already is gearing up a campaign to run for the seat.

CalPERS' actuarial office is reviewing the assumptions used to calculate the cost of buying additional retirement service credits to see if the purchase price should be changed. The cost is based on such actuarial criteria as retirement age, life expectancy and future salary. The actuarial office will report its findings to the board in June. It is possible that these service credits – which increase the number of years retirement is based on – then could cost more. State workers won the right to purchase service credits in the 2003-204 legislative session.

The Senate approved Sen. Abel Maldonado's nomination today for the post of lieutenant governor. The 25-7 vote clears the way for Maldonado to be sworn in to the vacant post – a step that could come as early as Tuesday. During the first phase of Maldonado's nomination, ACSS Labor Rep Tom Considine testistifed on Maldonado's behalf. Maldonado has been supportive of supervisors and praised them in a video interview posted online in our "newsroom." Maldonado fills the unexpired term of John Garamendi, who won a congressional seat, and is running to be elected to the office in November.

You have a chance to weigh in on next year's budget at several statewide forums being put on by Assembly Speaker John Perez and Assembly Budget chairman Bob Blumenfield. The public is invited to speak at the following sessions: April: 23 in Palm Springs, 24 in Fresno, 29 in Sacramento, 30 in Orange County; May: 7 in Los Angeles, 8 in San Diego. Web site information will be updated as later dates draw near.

The state Supreme Court has denied Gov. Schwarzenegger's request to consolidate seven furlough lawsuits now in appellate courts and freeze more than a dozen other cases in trial courts. The decision means there is little possibility for a quick resolution to the furlough lawsuits.

State Worker column: Gov. Schwarzenegger and Senate Republican leader Dennis Hollingsworth announced a bill, SB 919, yesterday that would cut retirement benefits for new state hires. The changes include raising the general retirement age from 62 to 65 (57 for public safety officers) and raising the time to vest in health benefits to 25 years from 20. The formula for computing retirement would not change for most state workers.

A Sacramento Bee editorial calls the recent California Budget Project report on the state work force (see this blog below) a "myth buster." The number of state workers has increased only slightly in the last 20 yeras, and California has fewer public employees per capita than nearly every other state. Corrections employment, on the other hand, has more than doubled over the past 20 years.

The ACSS board of directors at its meeting April 17 endorsed Attorney General Jerry Brown for governor and Assemblywomen Alyson Huber of Sacramento and El Dorado counties and Noreen Evans of Santa Rosa in their bids for reelection. ACSS political action committee chairman Frank Ruffino attended the state Democratic convention April 16-18 in Los Angeles and met with Brown and several other candidates on ACSS' behalf. The association will make additional endorsements as they analyze the races. (Photo: Lou Delgado, SpotLight Photography)

CalPERS board members voted Monday to change a policy that prevents the giant pension fund from modifying mortgages made to some of its struggling members. Until now, the pension fund hasn't modified  "jumbo" loans when members have fallen behind in payments.

In response to the suggestion that California could dramatically reduce state employment with minimal impact on services, the California Budget Project has published a report detailing the breakdown in the state's workforce. The findings: More than half the state's workforce is employed in public safety and education, primarily universities.

Are furloughs and labor turmoil pushing state workers into retirement? The number of Californians who began retirement in January increased more than 30 percent over January 2009, and in all of 2009, state retirements were up almost 18 percent from 2008. Still, with 21,000 workers starting state jobs last year, the state work force shrank by only 1,666 employees. An audit estimates half the state's supervisors and managers could leave by 2016.

Breaking news: The 1st District Court of Appeal has sided with Gov. Schwarzenegger in ruling that the furloughs will continue during the appeal of the Alameda Superior Court's decision to end furloughs for state workers in some "special fund" departments. This story will be updated as new information is available.

A letter writer to The Sacramento Bee Sunday calls for voluntary furlough days:
Make furloughs optional: Re "Voluntary furloughs, anyone?" (Page A3, April 1): The feud between the governor and SEIU Local 1000 could be resolved by making "Furlough Fridays" optional. Poll employees via e-mail and ask: "Should Furlough Fridays continue?" I believe the yeas just might carry it. What many have learned is that: a) they can manage without the extra bucks; and, b) some things can't be quantified in terms of money but are priceless in terms of quality of life, such as time. And maybe people care if others keep their jobs, even if the pay is a little less. Currently, state employees get three days off per month in exchange for a 15 percent pay cut. If the battle with the governor results in a five-day work week, a 15 percent pay cut and jobs lost, I am compelled to ask the union: Exactly whose interests do you propose to be representing? – Jane Ryan, Sacramento