Presented to:The California LegislaturePursuant to Section 19829.5 of the Government Code
MOU Fiscal Analysis:Bargaining Units 12, 16, 18, and 19
L E G I S L A T I V E A N A L Y S T ’ S O F F I C E
April 20, 2012
LAO
70 YEARS OF SERVICE
1LEGISLATIVE ANALYST’S OFFICE
April 20, 2012
LAO
70 YEARS OF SERVICE
Ralph C. Dills Act Provides for State Employee Collective Bargaining.
With passage of the Dills Act in 1977, the Legislatureauthorized collective bargaining between unions representingrank-and-file state employees and the administration. Currently,about 182,000 employees belong to one of the state’s21 bargaining units.
Legislature Must Ratify MOUs and Significant MOU Changes.
Fiscal provisions of proposed memoranda ofunderstanding (MOUs) must be ratified by the Legislature inorder to take effect. To assist the Legislature in its review of aproposed MOU, the Legislative Analyst’s Office (LAO) preparesa fiscal analysis of the agreement within ten days of receiving itfrom the administration. The administration also must submit tothe Joint Legislative Budget Committee (JLBC) any proposedchanges to a ratified MOU (side letters, appendices, or otheraddenda). The JLBC, in turn, has 30 days to determine whetherthe proposed change significantly modifies the terms of theMOU and thus requires approval by the Legislature to becomeeffective.
State Currently Has Active Contracts With All of Its Bargaining Units.
Four of the state’s MOUs (for BargainingUnits 12, 16, 18, and 19) expire in July 2012. The other 17 MOUsexpire one year later.
Background
2LEGISLATIVE ANALYST’S OFFICE
April 20, 2012
LAO
70 YEARS OF SERVICE
Extend the Terms of Expiring Contracts.
The Departmentof Personnel Administration (DPA) submitted to the Legislaturetentative agreements for the four bargaining units with expiringcontracts (Units 12, 16, 18, and 19). These agreements would(1) extend the terms of the existing MOUs to July 2013 and(2) increase health benefits for two bargaining units (12 and 18).
MOU Addenda or Proposed MOUs?
The DPA refers to theagreements as “rollover agreements,” “agreement extensions,”or addenda to prior MOUs. Because the agreements extend thelife of existing contracts, we refer to them as proposed MOUs(and, as required for proposed MOUs, are submitting this analysisto the Legislature within ten days of receiving them). Regardlessof what the agreements are called, they require legislativeapproval to take effect.
Proposal
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MOU Fiscal Analysis: Bargaining Units 12, 16, 18, and 19
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