

CalPolicy Report on U of Calif's fight over high subscription cost to Nature & other major research journals http://bit.ly/9VflbC
CalPolicy Union-mgmt conflict reported at U of Calif over pay for post-doc researchers http://bit.ly/bAak08
The nonpartisan Little Hoover Commission meets today to hear testimony about public pensions, aiming to dispassionately analyze the impact of retirement costs on governments and then, if needed, suggest changes.
Heaven knows we need a dose of level-headed analysis, given the wide-open rhetoric that "pension reform" provokes.
Unions see such efforts as a call to arms, "an attack on public employees," union lobbyist Dave Low once told The State Worker.
Last year when it looked like an initiative might make the ballot to cut benefits for future government hires, Low warned it would provoke a "nuclear response" from labor.
Context and moderation don't score political points on either side.
Gov. Arnold Schwarzenegger has made rolling back state retirement benefits a top priority and has adroitly linked pensions to just about everything that ails the state.
Welfare? Kids' health care getting whacked? State aid for seniors? All on the chopping block all because ... of ... PENSIONS!!
Earlier this year, administration spokesman Aaron McLear said that the public is tired of a public pension system that is "crushing the rest of state government." David Crane, the governor's pension point man, calls the current retirement funding system "intergenerational theft" that has added to higher college tuitions.
It's a provocative narrative. It's also like a lifelong chain smoker cursing one pack of cigarettes for giving him lung cancer.
For some context, consider the tentative contracts agreed to last week by four unions representing about 23,000 state workers, including Highway Patrol officers and firefighters.
The deals, seen as a win for the governor, increase employees' pension contributions and lower retirement benefits from new hires. The state won't realize savings from that second provision for many years.
Those concessions and a few others in the four contracts translate into $72 million saved for fiscal 2010-11. About $43 million of that is savings for the $83 billion general fund, the shrinking pot of money at the center of the state's seemingly eternal budget crisis.
If all 235,000 or so state workers came under the same terms, the savings would be about $2.2 billion. The general fund, which is $19.1 billion short going into the July 1 start of the 2010-11 fiscal year, would realize about $1.1 billion of those savings. That's about 5 percent of the money needed to bridge the budget gap.
Meanwhile, Schwarzenegger's plan calls for the state to kick in $3.8 billion for pensions next year, a little more than half of that from the general fund.
Those are big dollars and an expense that can't be ignored. But pensions aren't the big fix to this year's budget mess, either.
Still, that won't keep either side from the over-the-top rhetoric.
Gov. Arnold Schwarzenegger plans to cut the pay of state workers to minimum wage if a timely budget accord is not reached, according to a memo sent Wednesday from the director of the governor's Department of Personnel Administration to state agency and department heads.
The memo, written by DPA director Debbie Endsley, also warned that Schwarzenegger could order more controversial furloughs, even though the state's final scheduled furlough day for tens of thousands of employees was last Friday.
"The Governor retains the right and authority to order furloughs if necessary to address a fiscal and cash crisis," Endsley wrote.
The new fiscal year begins July 1, but lawmakers and Schwarzenegger remain far from an agreement on a spending plan. Democratic lawmakers in the Senate and Assembly still have not unified behind one budget plan, while Schwarzenegger and legislative Republicans have stood behind the governor’s May proposal to eliminate welfare and trim billions from state spending.
Schwarzenegger tried in 2008 to pay workers minimum wage when the budget talks stalemated, but state Controller John Chiang, a Democrat, refused. A lower court judge ruled against Chiang and the issue is now before the 3rd District Court of Appeals.
In the Wednesday memo, Endsley wrote that "absent a state budget, we will send instructions to the Controller to pay [minimum] wages ... for the July pay period." The paychecks for that pay period are issued at the end of July. Once a budget is signed, workers would be entitled to their full back pay.
The threat is intended both to speed up budget negotiations in the Legislature and to push union leaders to the collective bargaining table. Last week, Schwarzenegger announced tentative deals with four labor unions. If ratified, those workers would be exempt from the minimum wage order, as Endsley noted in the memo.
-- Shane Goldmacher in Sacramento
The full memo is after the jumpHere’s an update on the furlough and minimum wage situations.
With respect to furloughs, the current program ends June 30, and the Administration expects the State to resume normal hours of operation in July. The Governor’s budget proposal includes four proposals to reduce employee compensation costs: a wage cut, one day per month of unpaid leave, increased employee contributions to pensions, and the workforce cap. The Governor retains the right and authority to order furloughs if necessary to address a fiscal and cash crisis.
As for the prospect of state workers receiving minimum wage in lieu of full wages, it will depend on when the Legislature and the Governor reach a budget agreement. The California Supreme Court ruled in 2003 (White v. Davis) that absent an appropriation, which for most of the payroll comes through the annual state budget, the Controller is prohibited from paying state workers beyond what is required by the federal Fair Labor Standards Act (FLSA). Absent a state budget, we will send instructions to the Controller to pay wages in accordance with the FLSA for the July pay period.
The four unions that recently reached tentative agreements on new contracts (CHP officers, firefighters, psychiatric technicians, and some medical professionals) would not be subject to any new furlough program or minimum wage payments, assuming their contracts are ratified in a timely manner.
Debbie Endsley
Regents 11-19-09 MLK Hospital Approval
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Defending the University 10-15-09
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Senate on Budget 8-26-09
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Radio Interview 3-30-10 on UC Future & Funding: KPCC radio interview with Russell Gould, Jesse Cheng, & Christopher Edley on UC Future and Funding.
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Jerry Brown as Gubernatorial Candidate Radio Interview 3-11-10
Gubernatorial candidate (and former governor) Brown was interviewed on KCRW's "Which Way LA?", March 11, 2010.
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Academic Senate on Budget 6-11-10
UCLA forum held on June 11, 2009 to discuss budget crisis. Chancellor Block, EVC Waugh, finance VC Olsen. Note: video and audio quality are limited.
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Regents meeting 3-25-10
Excerpt: UC Regents Meeting 3-25-2010 (Audio) at UC-SF: Executive pay, brief reference to MLK hospital and possible UC role in prison healthcare, indemnification policy of Regents and others, president's report, committee to be formed on campus climate.
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Legislative Assembly on University Commission on the Future: 4-29-10
UCLA Legislative Assembly 4-29-10 discusses UC Commission on the Future Parts 1-5 and UCLA budget Parts 5-8. Audio only. Sections unrelated to these two topics have been edited out.
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University Commission on the Future: 9-8-09
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