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Assembly Bill 7, introduced by Assemblyman Anthony Portantino, D-Pasadena

Assembly Bill 7, introduced by Assemblyman Anthony Portantino, D-Pasadena

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Published by jon_ortiz
freezes state worker pay above $150,000 per year until Jan. 1, 2014.
freezes state worker pay above $150,000 per year until Jan. 1, 2014.

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Published by: jon_ortiz on Mar 30, 2011
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03/31/2011

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california legislature
2011
12 regular session
ASSEMBLY BILL No. 7
Introduced by Assembly Member Portantino
December 6, 2010An act to add and repeal Section 18005 of the Government Code,relating to state employment.
legislative counsel
s digest
AB 7, as introduced, Portantino. State employment: salary freeze.Existing law requires the Department of Personnel Administration toestablish and adjust salary ranges for each class of position in the statecivil service, subject to speci
f
ed merit limits and except as speci
f
ed.Existing law requires the salary range to be based on the principle thatlike salaries shall be paid for comparable duties and responsibilities.Existing law allows the state to enter into memoranda of understandingrelating to employer-employee relations with employee organizationsrepresenting certain state employees.This bill would, until January 1, 2014, prohibit a person employedby the state whose base salary on or after the effective date of the billis greater than $150,000 per year from receiving a salary increase whileemployed in the same position or classi
f
cation. The bill would exemptfrom this prohibition a person whose compensation is governed by anoperative memorandum of understanding, as described above, a personwho has been exempted by Executive order of the Governor, asspeci
f
ed, or a person whose salary is set pursuant to the CaliforniaConstitution. The bill would also authorize the Controller to reject arequest for disbursement of funds that violates these provisions. Thebill would make related legislative
f
ndings and declarations regardingthe state budget de
f
cit.
99
 
Vote: majority. Appropriation: no. Fiscal committee: yes.State-mandated local program: no.
The people of the State of California do enact as follows:
1234567891011121314151617181920212223242526272829303132333435SECTION 1. Section 18005 is added to the Government Code,to read:18005. (a) The Legislature
f
nds and declares all of thefollowing:(1) For several years, the State of California has faced budgetde
f
cits requiring cuts and changes in priorities in order to fundstate activities.(2) In recent months, the United States economy has been dealtsevere blows due to the credit crisis and the housing market crisis,and their resulting effects upon the
f
nancial markets.(3) The ongoing structural de
f
cit in state
f
nances, complicatedby worsening economic developments, has created a
f
scal crisisin the governance of the state.(4) During the current economic recession, California hasexperienced a dramatic decline in revenues that has forced and isforcing severe cutbacks in spending on state services and programs.The state now faces at least a $25.4 billion shortage.(5) The 2011
12 state budget, which must resolve the $25.4billion shortage, is expected to include a series of taxes, cuts, andgimmicks triggered in part by the level of incoming federal dollarsand the performance of the state
s economy.(6) Past
f
scal year budgets have seen funding of state servicesbeing conducted with gimmicks and borrowing that has only furtherserved to exacerbate our state government
f
scal crisis. In addition,state borrowing through bond indebtedness has steadily increasedover the past six years. California bond borrowing has gotten tothe point where the debt load on the General Fund could in thefuture easily exceed 10 percent of the State Budget per year. TheLegislature
f
nds that those
f
scal practices are not sustainable andwill only lead to further economic and
f
scal crises.(7) Freezing certain state salaries and bonuses will help alleviatethe budget shortfall currently facing the state.(8) At a time when the California State University system israising student fees it is imperative that the nearly 500 CaliforniaState University employees who make in excess of $150,000 per
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AB 7
 
12345678910111213141516171819202122232425262728293031323334353637383940year lead by example and forego raises or bonuses for a period of 24 months.(9) (A) At a time when the University of California Board of Regents is raising student fees, it is imperative that they showleadership and
f
scal responsibility for two years by not grantingraises or bonuses for employees that make in excess of $150,000per year.(B) The Legislature urges the Regents of the University of California and the Board of Directors of the Hastings College of the Law to adopt the policy expressed in this section for individualsemployed by those entities.(b) Except as provided in subdivision (c), a person employedby the state whose base salary on or after the effective date of thissection is greater than one hundred
f
fty thousand dollars($150,000) per year shall not receive a salary increase or a bonuswhile employed in the same position or classi
f
cation.(c) Subdivision (b) shall not apply to any of the following:(1) A person whose base salary or other compensation isgoverned by an operative memorandum of understanding enteredinto pursuant to Chapter 10.3 (commencing with Section 3512) orChapter 12 (commencing with Section 3560) of Division 4 of Title1, or pursuant to another collective bargaining agreement.(2) A person employed in a classi
f
cation that has beendesignated by the Governor to be necessary for protecting thesafety and security of the people of California. The Governor shallmake such a designation only by an executive order that lists thename of each individual to whom the order applies, his or her jobclassi
f
cation, and the reason for exempting the individual fromthe requirements of subdivision (a).(3) A person whose salary is set pursuant to the CaliforniaConstitution.(d) For the purposes of this section, a
person employed by thestate
means a person employed by the executive, legislative, orjudicial branch of state government, an appointee to a state boardor commission, or a person employed by the California StateUniversity system. A
person employed by the state
does notinclude local trial court employees, as de
f
ned by subdivision (
l
)of Section 71601.(e) The Controller may reject a request for a disbursement of funds that violates this section.
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AB 7
 
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