Keeping you up-to-date on our work to increase your salary, improve and protect your benefits, and aggressively represent your professional interests in every forum where they are at stake.
CASE BOARD OF DIRECTORS’ UPDATE
Budget Notes. After years of state budget surpluses driven by an economy so strong that it defied a predicted COVID-19 slump and prompted refunds to most residents, Governor Newsom’s 2023-24 spending plan contends with a $22.5 billion deficit. It’s the first time since he took office in 2019 that Newsom has been forced to suggest major reductions in his January proposal.
The budget also notes that in a few weeks, 14 state employee bargaining units with contracts that expire this summer will begin negotiating with the administration for successor agreements. They will meet with a cloudy economic outlook hanging over the bargaining table. The majority of those units, roughly 100,000 employees total, are represented by SEIU Local 1000.
Fortunately, CASE is not among the units gearing up for contract talks. Your CASE bargaining team negotiated a Memorandum of Understanding (MOU) – overwhelmingly ratified by Members last summer– before the state officially forecasted a deficit. CASE also avoided bargaining at the same time as SEIU Local 1000, which by virtue of its size tends to set the ceiling for other units bargaining on the same track. Salaries for supervisors and managers traditionally track gains secured through bargaining, though they are discussed yearly rather than for the same term as the Unit MOU. CASE will continue to meet and confer with CalHR to ensure those in S02 and M02 classifications receive a timely increase in July.
Of course, Newsom’s January 10 proposal merely started a process. Now comes a six-month legislative marathon of hearings and horse-trading to produce a budget in time for the July 1 start of the 2023-24 fiscal year. Meanwhile, shifting economic forces will also play a role: If the economy improves and tax revenues blossom, some of the cuts and clawbacks in Newsom’s spending plan will be restored. If the economy worsens and further squeezes revenues, lawmakers will have to dig deeper into spending, dip into the state’s $36 billion in available reserves, or both, to close a larger deficit.
Regardless, CASE will be there every step of the way to protect the interests of CASE members. Look for updates in CASE Files to stay informed about important budget developments and other issues affecting your career and workplace.
CALPERS CORNER
Annual Report Released. Right around this time each year, CalPERS releases its Annual Comprehensive Financial Report, which summarizes the fund’s financial standing as of the fiscal year-end on June 30. Here are a few numbers from the new 2021-22 review:
- $439.4 billion: The value of the assets in the Public Employees’ Retirement Fund (PERF), the pot of money from which pension benefits are paid.
- -6.1%: The 2021-22 investment net return for the PERF. The losses were driven primarily by the downturn of the public markets that account for 79% of CalPERS’ total fund.
- 72%: This was CalPERS’ estimated funded status for June 30, 2022, down from 81.2% a year earlier. The number measures the pension fund’s financial status when comparing its assets and liabilities.
- 2,892: The number of public employers contracted with CalPERS to administer their pension benefits.
- 2,155,896: All the individuals in CalPERS, including the total number of benefit recipients and members who are not yet receiving benefits.
- $29.1 billion: Benefits paid out to more than 775,000 retirees and beneficiaries, up approximately $1.7 billion, or 6.2%, from the previous fiscal year.
You can dive more deeply into the 2021-22 Annual Comprehensive Financial Report via this link.
IN CASE YOU MISSED IT
News of interest to Unit 2 legal professionals:
- California lawsuit accuses drugmakers of insulin overcharging – Reuters
- More and More Employers Are Using an Overtime Loophole to Pay People Less – TIME
- Will California join government phone TikTok ban? – CalMatters
REMINDERS
Board of Directors Meeting Tomorrow. The CASE Board of Directors meets tomorrow, January 19, 2023, at 9:00 a.m. The deadline to register to attend via zoom has been extended to 3 p.m. today, Wednesday, January 18. Members who register will receive a Zoom link by tomorrow morning. If you wish to provide public comment, please complete this form in advance of the start of the meeting.