January 11, 2024 Supervisory Update

CASE BOARD OF DIRECTORS UPDATE

Governor Unveils Initial Budget Proposal. The Governor yesterday unveiled his initial budget proposal for the fiscal year beginning July 1, 2024. Most notable: the Governor’s budget is based on a projected $37b budget deficit – a dramatically smaller number than the $68b shortfall the Legislative Analyst projected last month. The Governor proposed closing the gap with a combination of spending from reserves, borrowing, “belt-tightening,” and delays and deferrals in previously planned spending. Department of Finance Director Joe Stephenshaw noted that furloughs or PLPs are not included in the budget proposal. 

The budget includes, however, a proposal to achieve $51.2m in savings by eliminating state employees’ telework stipends – a benefit for which CASE advocated strongly and spent considerable time ensuring has been timely provided to members. Because this benefit is included in the CASE MOU, the state must seek to achieve the savings through the bargaining process and cannot unilaterally eliminate your contractually-guaranteed benefit. 

Today’s release kicks off the Budget process, which will involve legislative hearings, negotiations between Legislators and the Governor over details, a revised plan from the Governor after April’s tax receipts are in (the “May Revise”), and which is expected to culminate with the adoption of a budget by the constitutionally mandated June 15 deadline. 

CASE Board Meeting-February 9. The CASE Board meets next on Friday, February 9. To attend via zoom, please complete the online registration form (pw: membersmatter22) no later than 5:00 p.m. on Thursday, February 8. A zoom link will be sent to all registered members on Friday morning by 9am. 

CALPERS CORNER

Compensation Limits Updated for 2024. CalPERS has issued its annual letter updating 2024 compensation limits for classic and PEPRA members. The limit for classic members (those hired before January 1, 2013) is $345,000, up from $330,000 in 2023. For PEPRA members (those who first entered state service after January 1, 2013), the limit for social security participants is $151,446 and $181,734 for non-social security participants (up from $146,042 and $175,250, respectively, in 2023). The contribution limits do not limit the salary employees earn, rather they limit the amount of compensation that can be considered under CalPERS’ defined benefit plan. Click here to read the full 2023 CalPERS letter.

IN CASE YOU MISSED IT

News of interest to CASE legal professionals:

REMINDERS

New Year, Stronger CASE. Welcome to 2024! We hope you had a wonderful holiday season. As the CASE Board gets ready for another year of action and advocacy on behalf of CASE Members, we need your help. Take 5 minutes to complete our 2024 CASE Member Survey. Your answers will help us better know the membership that we serve and inform our decision making in the coming year. The survey will be open through January 31, and three respondents will be selected at random for a $100 gift card. 

2024 Bar Dues. State Bar Dues must be paid by February 1, 2024. The process for paying fees can vary from department to department. The maximum the State will reimburse is $465 of the default $510 indicated on your State Bar dues form. The State does not cover voluntary or optional contributions. The CASE MOU provides increased reimbursement for specialty or local bar dues – up to $200 annually where State Bar Membership is required as a condition of employment. Fees for more than one specialty or local bar membership can be reimbursed if the total reimbursement does not exceed $200. For employees not required to be State Bar members as a condition of employment, your department may provide reimbursement for dues or 2 additional Professional Development Days (PDDs). For more details, check out the CalHR Manual section on dues payment, or contact CASE.

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