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Legislative Analyst's Office memo regarding state labor contracts, Mar. 30, 2011

Legislative Analyst's Office memo regarding state labor contracts, Mar. 30, 2011

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Published by jon_ortiz
Analyst says state labor deals don't cut costs nearly enough http://tinyurl.com/22onqqb
Analyst says state labor deals don't cut costs nearly enough http://tinyurl.com/22onqqb

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Categories:Types, Letters
Published by: jon_ortiz on Mar 31, 2011
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07/10/2013

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Date:
March 30, 2011
To:
Seren TaylorSenate Republican Budget Committee
From:
Nick Schroeder
and Marianne O’Malley
 
Subject:
Fiscal Provisions of Ratified and Proposed MOUs
As we discussed and summarized in the table below
, 15 of the state’s
collective bargainingunits have memoranda of understanding (MOUs) that were ratified by the Legislature in 2010.Six other bargaining units are working under expired contracts.
 
To: Seren Taylor 2 March 30, 2011During our phone call, you asked for:
 
A table summarizing the major fiscal provisions of the 15 MOUs that were ratified bythe Legislature in 2010 and the four proposed MOUs that were recently transmitted tothe Joint Legislative Budget Committee (JLBC) (for Units 2, 7, 9, and 10).
 
Comments on the level of savings that the state likely would achieve through MOUswith the six bargaining units working with expired contracts.
Major Provisions of MOUsLikely 2011-12 State Savings From 2011 MOUs
Control Section 3.90 of the 2011-12 budget
— 
recently approved by the Legislature
— 
assumesthat the state will achieve $515 million ($308 million General Fund) savings through collectivebargaining agreements or administrative actions with the six bargaining units working underexpired contracts. The four proposed MOUs that were recently transmitted to the JLBC (Units 2,7, 9, and 10) reduce the s
tate’s Unit 2
, 7, 9, and 10 General Fund employee compensation costsby about 3 percent. If the remaining
bargaining units’ proposed MOUs result in similar levels of 
savings, we estimate that the state would fall short of its 2011-12 assumed savings by more than$300 million (over $200 million General Fund). This, in turn, would place greater pressure onthe administration to achieve employee compensation savings through other administrativeactions, such as hiring freezes, furlough programs, and layoffs.

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