“Pretty grim,” is how Gilb immediately characterized this year’s budget outlook. The state is facing a $17 billion deficit, he said. “It doesn’t look like there’s going to be much in the way of pay raises,” he said. “It’s going to be a long, hard summer. … I don’t have any money.”

Nevertheless, the ACSS team, including Senior Labor Relations Rep Bonnie Morris, pressed for improvements for excluded employees and elicited concessions and concerns.

The dialog encompassed the following points:

• Rank-and-file bargaining: Nineteen of the 21 state bargaining units will negotiate this year. Morris insisted that excluded employees be given the same salary adjustments as rank-and-file, plus a little more. “There’s always some money for raises,” she said.
• Health insurance: The CalPERS board worked successfully to keep PPO health insurance rates flat this year. In June, CalPERS and the DPA will negotiate with HMOs, such as Kaiser. ACSS representatives urged those rates also remain unchanged. Gilb assured the group he was working to achieve that.
• Retiree health benefits: There is no plan to change current retiree health benefits, Gilb said, but there is “a strong interest” in containing the costs. Currently, there is a $48 billion unfunded liability for retiree health benefits that needs to be “paid down.” ACSS will participate in retiree health benefits meetings.
• Compaction: After hearing ACSS’ concerns that supervisors earn little more and, in some cases, less than their staffs, Gilb said his plan is to try to restore the 10 percent salary differential in 2.5 percent increments. Funding the first increment this year would cost the state $14 million, he said.
• Departmental funding of raises: By law, departments can no longer allocate raises from their own budgets. All money for salaries must be earmarked for that in the governor’s budget.
• Training: Gilb said he is committed to offering training as a means of improving supervisors’ and manager’s skills and pay levels. Gilb’s long-term plan proposes that pay increases be automatic and incremental when an employee completes certain approved courses.
• Vacation buy-back: ACSS reminded DPA that many supervisors and managers are interested in participating in the vacation buy-back program and are hopeful that all departments will choose to participate in that program, if it is approved.

Gilb also said he supports flexible work schedules so employees can save commuting time and costs and agrees that geographic differentials in pay rates should exist for areas, such as San Francisco, that are so expensive state agencies have difficulty recruiting.

ACSS will keep members informed as budget negotiations progress.