2010 Legislative Update

1. 2010 Legislative Update

2. What is Local 1000’s 2010 Legislative Agenda? Top Priorities • Say WHAT? • State Budget • Legislation • Initiatives

3. Say WHAT? “What we need to do is curb public employee union power once and for all. Now, the fact is public employee unions are a small percentage of the population and they have the lion's share of the political power. It's a fact.”

4. Say WHAT? “Promises made to existing employees cannot and should not be changed…” “Now, in employee compensation, I propose…a 5 percent increase in employees' retirement contributions.”

5. Say WHAT? “The reason California is bankrupt and it is bankrupt is because the state workers unions run our state. The powerful state unions, such as the State Employees Services Union…are ruthless and care nothing about California’s sad state or the average taxpayer for that matter.”

6. Governor’s Proposed Budget 5/5/5 plan: • Increase in PERS contributions by employee (5%) • “Workforce cap” (5%) • Salary reduction (5%) • “Trigger” Additionally: • Reduction of $152.8 million by contracting for lower cost health care coverage either directly from an insurer or through CalPERS • Decrease of $98.1 million for pre-funding health and dental for Annuitants

7. LAO’s Analysis of Governor’s Proposals • Increase in PERS contributions by employee (5%) • Analysis: PERS increase is “risky” if done legislatively • Recommendation: • Pension reform for new employees • Collective bargaining • “Workforce cap” (5%) • Analysis: Workforce cap won’t work • Recommendation: Don’t do workforce cap. If done, don’t touch CDCR

8. LAO’s Analysis of Governor’s Proposals Salary reduction (5%) • Analysis: Pay cut is the only way to go • Recommendation: CUT STATE EMPLOYEE SALARIES

9. Furlough Legislation AB 1215 (De La Torre) • This bill would exempt public employees from furloughs who are in positions that are funded at least 95% by sources other than the General Fund. AB 1215 is currently on the Senate’s Third Reading File and requires a majority vote to be sent to the Governor’s desk. SBX8 29 (Steinberg) • Same bill but in Extraordinary Session that the Governor called on January 8, 2010. This bill also includes FTB and BOE.

10. Other Legislation AB 1699 (Hernandez) • Continuous Appropriations bill in the event a budget is not in place by June 15, 2010 • Reincarnation of AB 1125 • There is another vehicle, AB 790, which is a “gut and amend” version of AB 1699 • Hearing is set for March 8, 2010

11. MOU Update • Assembly Bill 964 • Failed to pass Assembly by January 31st deadline (because it was a two-year bill) • Assembly Bill 88 • 2 year bill • Location: Senate Floor • Next Steps: Need 2/3 approval from the Senate by August 31, 2010 to send to the Governor’s desk.

12. Local 1000 Sponsored Bills • AB 1827 – EDD one stop career center • AB 1897 – SCIF bill • AB 1899 - Transparency • AB 2494 - Contracting out • AB 2608 - Rural Health Care Equity Program

13. 2010 Initiatives Ballot Measurers Certified for June 8 Primary • Property tax: new construction exclusion: seismic retrofitting. • Elections: open primaries. • Political Reform Act of 1974: California Fair Elections Act of 2008. • New Two-Thirds Vote Requirement for Local Public Electricity Providers. Initiative Constitutional Amendment. • Allows Auto Insurance Companies to Base Their Prices in Part on a Driver’s History of Insurance Coverage. Initiative Statute.

14. 2010 Initiatives Initiatives and Referenda Cleared for Signature Gathering • Prohibits Legislators from Voting on Legislation that Financially Affects Contributors. • Imposes Political Contribution Restrictions on Public Employee Labor Organizations. • Makes Illegal the Use of Public Employee Wage Deductions for Political Activities. • Limits Pension Payments That New Public Employees May Receive Upon Retirement. • Reduces Public Pension and Retirement Health-Care Benefits. (2)

15. Questions