Legislation proposed to eliminate salary increases, bonuses, and overtime pay for state employees making over $150,000.

From the Office of Assemblyman Portantino

Facing an economic crisis that could leave the state without cash by March 2009, Assemblymember Portantino (D-La Cañada Flintridge) introduced legislation which would provide California immediate savings by prohibiting any pay raises, bonuses, overtime pay, or any other increase in compensation to state employees earning over $150,000 per year.  Joining him as co-authors were Assemblymembers Juan Arambula (D-Fresno) and Anna Caballero (D-Salinas).

“California stands at the edge of a budgetary cliff and will fall into a recessionary abyss unless we act immediately,” said Portantino, who is also Chairman of the Higher Education Committee.   “At a time when we are asking our seniors, our students, and our poor and infirm to bear the budget burden year after year, the least we can do is ask those state employees who are most well-off to forgo any salary increases for the near future.  Together, the shared sacrifices will help put California back on track.”

As currently proposed, AB 53 would impose a strict, categorical prohibition on any compensation increase for state employees earning over $150,000.  The legislation would allow the Governor to make exemptions to the salary freeze for individuals “necessary for protecting the safety and security of the people of California”, but would require him to explain why the increase is necessary.   Due to California’s contractual obligations, AB 53 does not apply to employees whose salary is governed by a memorandum of understanding (MOU) or another collective bargaining agreement, nor does it apply to individuals employed in a classification that is subject to oversight by a federal receiver (such as many employees in the Department of Corrections and Rehabilitation).  AB 53 applies to legislative and gubernatorial staff, but because voters approved Proposition 112 in 1990 which established the independent California Citizens Compensation Commission, the salaries of the state constitutional officers (such as Governor and Lt. Governor) and members of the Legislature can only be set by the Commission.

The California State University has been widely criticized for what many view as excessive and unwarranted compensation increases during tough budget years and student fee increases.  Just this year, Chancellor Charles Reed approved salary increases of up to 19% for nine vice-presidents at various CSU campuses.  Even as CSU is threatening an unprecedented move to cap enrollment and turn eligible students away, a committee of Trustees recently approved a 10 percent salary increase for an interim vice chancellor and authorized a highly-paid vice chancellor position that had been vacant for over five years.

“I think this bill sends a clear message to the Trustees that Californians expect them to act as responsible stewards of the public’s tax dollars,” continued Portantino.  “I have heard from countless students, workers, and faculty who are outraged that these sweetheart deals have been made for those at the top while everyone else has had to pay more.  AB 53 will finally put a stop to the extravagances on the backs of students, families, and taxpayers.”

AB 53 must be “in print” for 30 days, at which point it will be referred to an Assembly policy committee.